Debswana Diamond Company is cutting back production at several of its mines due to ongoing weakness in the global diamond market, according to a Reuters report published on Friday. The decision comes amid falling demand and mounting economic pressures, including recent tariffs imposed by the United States.
The company, which is jointly owned by the Botswana government and De Beers, reduced its production by 27% in 2024 to 17.93 million carats, Reuters noted. Looking ahead, Debswana plans to further scale down output to 15 million carats in 2025.
Debswana has temporarily halted operations at its Jwaneng Cut 9 and Orapa sites, in addition to suspending activities at the Letlhakane tailings plant and the Jwaneng Modular plant earlier this year. These measures are aimed at achieving significant savings on energy, fuel, and other input costs, the company said.
“Debswana Diamond Company continues to prudently navigate the challenging market conditions,” it said in a statement cited by Reuters, highlighting persistent low demand and geopolitical challenges such as U.S. tariffs.
While some capital projects will be delayed to conserve funds, Debswana confirmed that its Jwaneng underground expansion — a major long-term investment — will proceed as planned. No compulsory layoffs are expected, although the firm continues to offer voluntary separation packages.
The diamond sector plays a vital role in Botswana’s economy, accounting for roughly 30% of government revenue and 75% of foreign currency income. The prolonged market downturn contributed to a 3% contraction in the country’s economy in 2024, with the IMF predicting a further 0.4% decline this year.