Botswana diamond company halts production at key mines citing global demand downturn

By James Kunda

LUSAKA, Zambia (AA) - Debswana, Botswana's main diamond company, announced on Friday it is pausing production at some of its key mines due to a prolonged downturn in global demand.

The flagship Jwaneng mine as well as Orapa will remain closed for at least three months.

"We have continued to prudently navigate the challenging market conditions," the company said in a statement, also citing the impact of pressures such as the US-imposed tariffs on operations.

Debswana, a joint venture between the government and global mining giant De Beers, accounts for around 90% of the southern African nation's diamond sales. It said the measures would lead to significant cost savings across areas such as fuel and electricity.

The company said this year's production was being scaled back to 15 million carats, approximately a 40% decrease from its 2023 output. Its sales revenue also dropped by 46% in 2024, and had cut production to 17.93 million carats last year.

Botswana is the world's largest diamond producer by value, with the industry accounting for a quarter of the country's GDP.