Diamond sales at Debswana record a drop
According to data released by the Bank of Botswana, rough diamond sales by Debswana Diamond Co dropped slightly in the first three months of 2023, as the market was more cautious due to the uncertain global macroeconomic outlook.
About Debswana
Debswana is a joint venture between Anglo American Plc unit De Beers and Botswana’s government, with 75% of its output sold to De Beers and the remaining balance taken up by state-owned Okavango Diamond Co. Sales of diamonds from Debswana fell 1.4% to $1.077 billion during the three-month period, compared to the same period last year. However, in pula terms, the rough sales recorded a 10.1% jump to 14.005 billion pula, which can be attributed to the effects of a stronger dollar during the period.
Currently, De Beers and Botswana are renegotiating their mining rights and sales agreements, with Botswana’s President Mokgweetsi Masisi stating that his government is seeking to obtain more rough diamonds for trading outside of the De Beers system. Debswana accounts for almost all diamonds produced in Botswana, with the Karowe mine operated by Lucara Diamond Corp being the only other operating diamond mine in the country. Botswana’s revenues and foreign exchange earnings are heavily dependent on diamonds, with the precious stones contributing to around 30% of the country’s revenues and 70% of its foreign exchange earnings.
