De Beers Greenlights $1 Billion Investment in Botswana Diamond Mine
11 January 2024 - 12:56AM
Dow Jones News
By Christian Moess Laursen
De Beers will go ahead with a planned $1 billion investment in
the Jwaneng underground project in Botswana, the world's most
profitable diamond mine, amid tightening diamond supply
globally.
The Anglo American majority-owned diamond major said Wednesday
that the investment paves the way for the mine to transition from
open pit to underground operations, with initial works to begin in
May.
"The global supply of natural diamonds is falling, so moving
forward with the Jwaneng Underground Project creates new value for
investors," Chief Executive Al Cook said.
"This investment is aligned with our strategy to prioritize
investments in the highest quality projects," he said.
The Jwaneng mine is operated through the 50-50 joint venture of
De Beers and the government of Botswana. It produces an annual
average of almost 11 million carats per year.
In July, De Beers--the world's largest diamond miner--signed a
ten-year deal with Botswana for the rough diamond production of the
joint venture, in which Botswana's take of the diamonds rose to 50%
from 25%, along with a 25-year extension to the mining
licenses.
Write to Christian Moess Laursen at christian.moess@wsj.com
(END) Dow Jones Newswires
January 10, 2024 08:41 ET (13:41 GMT)
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