Debswana announces additional market response measures
Staff Writer | Monday June 16, 2025 11:16
In response, the company is implementing a series of targeted interventions to safeguard long-term business sustainability and enhance operational resilience. To align operational costs with the prevailing revenue outlook, Debswana will implement cost-saving initiatives and calibrated production adjustments. As part of this plan, production volumes will be reduced to 15 million carats in 2025. This includes a three-month suspension of production at Jwaneng Mine (Cut 9) from May to July 2025. Additionally, there will be a combined temporary pause at the Orapa Mine Pit and Orapa No.2 Plant in May, June, and October 2025. Notably, the May and June pause at the Orapa No.2 Plant will align with its scheduled annual maintenance shutdown, extending into a strategically timed production halt.
These measures are expected to generate substantial savings in fuel, electricity, and other production-related consumables. Further financial efficiencies will be realised through the deferral of select capital projects. However, critical investments, such as the Jwaneng Underground Project, will proceed as planned. Debswana has historically been resourced to support production capacity exceeding 25 million carats annually, whilst sales volumes have steadily declined over the past decade. This has resulted in excess capacity. To address the imbalance, the organisational structure has been reviewed to establish a more agile and responsive operating model that better aligns with cyclical market conditions.
'No involuntary separations have resulted from this process. Voluntary separation arrangements remain available to interested employees, and the Botswana Mine Workers Union has been kept informed and consulted throughout, in accordance with existing collective agreements,' read a statement from the company. Debswana remains confident in the long-term fundamentals of the diamond industry and stands firmly alongside its shareholders, employees, communities, and other stakeholders as it navigates this period of market turbulence. The board and management remain committed to ensuring full compliance with all applicable laws, policies, and procedures. A comprehensive stakeholder engagement plan is underway to ensure alignment across all fronts. Furthermore, Employee Assistance Programmes remain available to support colleagues through this transition with emotional, psychological, and financial guidance.