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MODERN MINING
May 2016
COUNTRY FOCUS:
BOTSWANA
I
nterestingly, Botswana is now no longer
regarded as the prime mining destina-
tion for investment in Africa, with the
latest (2015) Fraser Institute Survey of
Mining Companies placing it only fourth
on the continent (after Morocco, Burkina Faso,
Ghana and Namibia). Its lower – although
still creditable – showing in the survey was
over increased concerns over trade barriers,
the geological database and the availability of
skills and labour.
The diamond mining sector accounts for the
bulk of Botswana’s mining production by value,
with Debswana being by far the biggest pro-
ducer. It is targeting a production of 20 million
carats this year but this is well down on the 30
million plus carats recorded roughly a decade
ago. Reportedly, Debswana cut production by
3 million carats last year because of subdued
demand in global markets and has also placed
its smallest mine, Damtshaa (near Orapa), on
care and maintenance.
In the Central Kalahari, Botswana’s only
underground diamond mine, Ghaghoo, has
also not been immune from conditions in the
global economy with its owner, LSE-listed
Gem Diamonds, stating in its latest annual
report (for the year ended 31 December 2015),
that the operation is being downsized “to min-
imise the cash to be consumed by this asset.
Consequently, a modified target of approxi-
mately 300 000 tonnes of ore to be treated has
been set for 2016.”
More positively, the phenomenal success
of Lucara’s Karowe diamond mine continues.
Located in the Orapa Kimberlite Field and
based on the AK6 kimberlite, Karowe was com-
missioned in 2012. It has since proved to be a
prolific producer of large diamonds with more
than 700 larger than 10,8 carats being recovered
during 2015 (mainly from the south lobe of the
mine). This included 20 stones larger than 200
carats (of which seven were larger than 300
carats). The 1 111-carat
Lesedi La Rona
, which
was recovered in November last year, ranks as
Commodities downturn
takes its toll
Production recently restart-
ed at the Lerala diamond
mine. This photo shows the
first bucket of stockpiled
ore being tipped into the
headfeed bin and primary
crusher (photo: Kimberley
Diamonds).
With the annual Botswana Resource Sector Conference
imminent,
Modern Mining’s
Arthur Tassell takes a look
at the mining scene in Botswana, which is probably the
bleakest it has been in years. Botswana’s economy shrank
last year by 0,3 % according to Statistics Botswana (a figure
which the IMF believes could be an under-estimate), largely
as a result of falling mine production due to weak demand
for commodities. There are nevertheless some good news
stories emanating from the mining sector, particularly in
diamond mining, with Lucara’s Karowe diamond mine
continuing to impress and the Lerala diamond mine of
Kimberley Diamonds resuming production.