De Beers bullish on new diamond mine
Brian Benza | Friday July 4, 2014 06:59
The company, which carries out exploration work for Debswana, says it is currently undertaking various desktop studies, which could identify potentially economic kimberlites.
In an interview with the BusinessWeek, De Beers Regional Exploration Manager – Southern Africa, Mike Roberts, said that the giant diamond company is very positive about the country’s potential and remains focused on its search for new diamond mines in Botswana.
“Over the last few years we have been primarily focused on a desktop targeting exercise, using the latest data interrogation techniques, to identify the areas in Botswana that could potentially still hold new economic diamond mines.
We have already submitted applications for new prospecting licences to government for several parts of the country, and hope to have a response within the next few months,” he said.
With an annual budget of approximately P35 million, the De Beers exploration team of about 30 staff carries out greenfields exploration activities throughout Botswana.
In addition, De Beers has also provided exploration services to Debswana, which included geophysical surveys, drilling and analysis of selected targets around the mines.
“In 2012, we completed all the exploration phase work within the current Debswana mining leases, to look for new kimberlites and to test the satellite bodies around Orapa,” he said.
Debswana currently has four operating mines in Botswana, Jwaneng, Orapa, Letlhakane and Damtshaa producing a total of about 22 million carats a year.
Diamonds currently contribute around one-third of GDP, and about 80 percent of foreign earnings. Roughly four out of every five Pulas generated by the Debswana partnership is contributing to government revenues.
“Discovering kimberlites is usually relatively easy – it is finding one with sufficient diamonds that is most challenging – especially given that only 1 percent of the 8,000 kimberlites found around the world have been mined economically.
“Exploration is a high risk and time-consuming investment that requires significant perseverance, very specific technical expertise, access to the right technologies and equipment, as well as ongoing funding.
In this regard, De Beers is well positioned to unlock the remaining potential in Botswana,” he added.
Diamonds are now forecast to run out by 2050 instead of initial projection of 2030, Minerals, Energy and water Resources Minister Kitso Mokaila said recently.
Speaking to Rapaport news during his recent visit to the USA, the minister said the life span of Botswana diamonds mines would be extended by another 20 years.
Diamonds currently contribute around one-third of GDP, and about 80 percent of foreign earnings.
Earlier forecast had estimated the lifespan of Jwaneng, which is the most valuable of the country mines, contributing 60-70% of Debswana output, to stretch only until 2028.
The country’s second largest mine Orapa, which is likely to go underground in the near future was also seen in previous projections to exhaust its resource by 2030.
Apart from the Debswana stable, there are two other diamond mines in the country, Lerala and Karowe, while Ghaghoo in the CKGR is expected to start operations later this year.
Other major companies that are currently exploring new diamond deposits in Botswana include Petra in Orapa, Pangolin Diamonds in Tsabong and Botswana diamonds in conjunction with Russia’s Alrosa in Orapa.
De Beers, which is 15 percent owned by government of Botswana with the rest owned by Anglo American is also exploring for new diamond deposits in South Africa, Angola, Canada and India.