10 Nov 2015

President Lt Gen. Seretse Khama Ian Khama has indicated that while the minerals sector remained a principal source of revenue and primary sector for economic growth and diversification, it was currently challenged by depressed markets.

 He said, as of the end of August this year, the benchmark global price of 1-carat and 0.30-carat diamonds had declined by 12.9 per cent and 29 per cent respectively over the past 12 months, due largely to weakened Asian demand. 

“While demand was projected to recover the latest downturn underscores the fact that the era when we could almost always rely on steady demand and rising prices for our gems has given way to greater uncertainty,” he said.

President Khama said this at while delivering the State-of-the-Nation Address, where he said The anticipation was on reopening of Lerala and BK11 mines, which have been under care and maintenance since 2012, adding that it been delayed. 

He said, Ghaghoo Mine, however, has started operation during the last quarter of 2014, while Karowe mine continues to enjoyed success.“The recent closures of two factories in Botswana, albeit offset by the opening of two others, as well as bankruptcies in some major diamond trading centres, further point to the fragile and fluid nature of the industry,” he stated.

President Khama said, despite the challenges, the sale of rough diamonds through regular sights, tenders and auctions have been taking place in Botswana as scheduled up to the end of September 2015,  and that, In addition to DTC and Okavango Diamonds, Gem Diamond have also started local sales. 

He articulated that, the Diamond Cutting and Precious and Semi-Precious Stones Amendment Bills, which was aimed at adapting to current downstream industry developments for improving business conditions and enabling growth, was being finalised. He added that the amendment was expected to facilitate the policy on further beneficiation and citizen empowerment among other key issues. 

The President said, the drafting was intended to reinforce beneficiation efforts, is also in process.  Ends