Debswana will continue operations at Jwaneng diamond mine — the world’s richest — although it had not concluded negotiations with the Botswana government on the renewal of its mining licence.
”We have extended the current licence to the end of the year,” permanent secretary in the Ministry of Minerals, Energy and Water Affairs, Akolang Tombale, said on Monday. Renewal to mine at Jwaneng was sought for the usual 25 year term.
Tombale would not comment on speculation that the government is pressuring Debswana — a 50/50 partnership between itself and De Beers — to promote the downstream beneficiation of its diamond output to create jobs. Last week, Finance Minister Baledzi Gaolathe made it clear that Botswana was looking at ways of improving the already substantial benefits it derives from its diamond industry.
”We gain different benefits from mining,” said Gaolathe.
”Cutting and polishing of diamonds is within our programme. This need not be done by Debswana, but other companies in Botswana. We would like to see De Beers and Debswana facilitating the supply of diamonds to the companies we may attract to cut and polish here,” he said.
Gaolathe also indicated that the government could be looking at ways of improving the return from its diamond industry.
”We are discussing many issues,” Gaolathe said.
”Obviously when we started mining diamonds, we did not have all the facts about the ore body, prices, etc. but we are more educated now. Our technological knowledge has improved.
”All these things will be taken into account, maybe some may no longer be relevant — maybe there will be other challenges. My hope is that as in the past, there will be give and take and goodwill. A 25 year mining lease is a major privilege and there must be commensurate benefits flowing to the government.”
Diamond revenues account for a direct 33% of Botswana’s GDP, 75% of its foreign exchange earnings and a direct 60% of government revenues. Indirect benefits are enormous — few other industries would be around without the diamond mines. – Sapa