06 Nov 2023

Kimberley Process Secretariat is set to begin operations in Gaborone in January.

Delivering the State-of-the-Nation Address in Gaborone yesterday, President Dr Mokgweetsi Masisi said the hosting of the Kimberly Process Secretariat was a clear indication of the confidence that the international community had in the country’s governance processes.

The appointment of the executive secretary will be approved by the Kimberley Process Plenary in November,” he said.

The President also updated the nation on the new Sales Agreement that government reached with De Beers Group in September. The Sales Agreement will run for the next 10 years while the renewed mining licences for Debswana mines will run for a further 25 years from 2029 until 2054.

He said a groundbreaking outcome of the Agreement was the increase of the Botswana Government’s entitlement, through the Okavango Diamond Company, in the Debswana production, from 25 to 50 per cent by year 10. 

“This will fast-track the beneficiation for cutting, polishing and manufacturing of jewellery locally, thereby ensuring provenance and branding of our diamonds,” he said.

In addition, he said the agreement would result in Botswana receiving P1 billion each year for 10 years, which would be deposited into the Diamond Development Fund and would accumulate to P10 billion.

The Fund will, among others, support the tourism/hospitality and agricultural sectors, as well as research and development. 

The increase in government’s entitlement out of Debswana’s production will create additional opportunities for Batswana, he said.

He said Jwaneng Mine had embarked on an Underground Development Project, which aims to sustain diamond revenues beyond the life of Cut 9 open pit mining.

The project will develop a modern underground mine with early works expected in the first half of 2024.

It has also started rolling out the underground skills development strategic plan, which includes sending Batswana mining graduates to underground training centres in and outside the country.

The President further noted that the Orapa Cut 3 Project, whose main objective was to extend the life of the mine post Cut 2, had been approved to progress from pre-feasibility to full feasibility stage.

He also hailed the local mines for their citizen economic empowerment programmes, which he said had been able to create value chain jobs.

In another development, Dr Masisi shared with the nation that Lucara Botswana’s underground mining development at Karowe Mine, the first of its kind in Botswana, was in progress. “The open cast mine operation is expected to transition to underground mining in $683m  in 2026, at an estimated cost of P3bn, most of which is Foreign Direct Investment,” he said.

He said with Tshukudu Metals Botswana having secured the extension of their mining lease in September, it would in 2024 embark on the expansion of the mining project and create more job opportunities for Batswana.

President Masisi also spoke of the establishment of diamond cutting and polishing companies, which had increased from 23 to 46 in the country, leading to an increase of employment in the sector from 2 207 to 4 239, as at September, a growth of almost 93 per cent.

“One success to note and celebrate is a local jewellery manufacturing company, which exported its first ever diamond jewellery consignment in March to the US, under the Africa Growth and Opportunity Act facility,” he said.

He further said government was reviewing the Mines and Minerals Act to ensure, among others, increased participation of citizens in the minerals economy as well as safeguard the industry for sustainability. Ends