De Beers gives green light to $1 billion investment in Botswana diamond mine

Written by Christian Moes Laursen

De Beers is moving forward with its $1 billion investment plan in Botswana’s Jwaneng underground project, the world’s most profitable diamond mine, as global diamond supplies tighten.
The diamond giant, which is majority shareholder in Anglo American, announced on Wednesday that the investment would pave the way for the mine to move from open pit to underground operations, with first work to begin in May.

“The global supply of natural diamonds is decreasing, so moving forward with the Jwaneng underground project will create new value for investors,” said CEO Al Cook.
“This investment is consistent with our strategy of prioritizing investments in the highest quality projects,” he said.
The Jwaneng Mine is operated through a 50:50 joint venture between De Beers and the Government of Botswana. On average, approximately 11 million carats are produced annually.
In July, De Beers, the world’s largest diamond mining company, signed a 10-year agreement with Botswana for joint venture rough diamond production. The deal increased Botswana’s share of the diamonds from 25% to 50%. Extend mining licenses for 25 years.
Email Christian Moess Laursen at christian.moess@wsj.com.