Botswana Diamonds obtains mining permit for Thorny River project
Botswana Diamonds (LON: BOD) has obtained a mining permit for its Thorny River project in South Africa’s Limpopo province, setting the stage for potential production.
Thorny River, situated near the former Marsfontein diamond mine, has undergone extensive geological analysis, including geophysical surveys, drilling, and bulk sampling. The findings indicate that its geology and grade are similar to those of the Klipspringer mine, located to the west.
Diamond market
Previously, Botswana Diamonds operated the Marsfontein gravels and dumps as a trial mining project, earning a 15% revenue royalty. However, due to declining diamond prices and delays in obtaining permits, the company placed Marsfontein on care and maintenance in October 2023.
Now, with the newly granted mining permit, the company is preparing to begin contractor mining at Thorny River, provided market conditions are favorable. If diamond prices improve, Botswana Diamonds may also consider restarting operations at Marsfontein while increasing production at Thorny River.
Following the announcement, Botswana Diamonds’ stock initially rose in early London trading but later declined by 2.6% to 0.13p, giving the company a market valuation of approximately £1.5 million ($1.9 million).
The mining industry of Botswana has dominated the national economy of Botswana since the 1970s, being a primary sector industry. Diamond has been the leading component of the mineral sector ever since production of gems started being extracted by the mining company Debswana. Most of Botswana’s diamond production is of gem quality, resulting in the country’s position as the world’s leading producer of diamond by value. Copper, gold, nickel, coal and soda ash production also has held significant, though smaller, roles in the economy.
