Mining industry of Botswana

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The Jwaneng diamond mine, the second largest in the world, and richest by value. Jwaneng Open Mine.jpg
The Jwaneng diamond mine, the second largest in the world, and richest by value.

The mining industry of Botswana has dominated the national economy of Botswana since the 1970s, being a primary sector industry. [3] Diamond has been the leading component of the mineral sector ever since production of gems started being extracted by the mining company Debswana. [4] [5] 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. [4] Copper, gold, nickel, coal and soda ash production also has held significant, though smaller, roles in the economy. [4]

Contents

In 2022, mining accounted for about 16% of Botswana's real gross domestic product (GDP). [6] Most of Botswana’s mineral industry consists of diamonds. [7] Beyond diamonds, Botswana also boasts abundant mineral resources such as coal, copper, nickel, and soda ash, along with granite, further diversifying its mining sector. However, this sector, despite being very important, faces challenges, mainly due to lack of infrastructure development.

Diamonds

Tree map of Botswana's exports in 2009 Tree map export 2009 Botswana.jpeg
Tree map of Botswana’s exports in 2009

Botswana's diamond industry is very important to its economy. [3] Since the discovery of diamonds in Botswana in the late 1960s in the Orapa diamond mine, [8] these precious gemstones have played a very important role in shaping the nation's economics. The industry is mainly managed by the government and De Beers in a company called Debswana. [5]

Economic impact of diamonds

GDP per capita of Botswana from 1950 to 2016 GDP per capita of Botswana, 1950 to 2016.png
GDP per capita of Botswana from 1950 to 2016

Diamonds have had a large impact on Botswana's economy. The discovery of diamonds in Botswana during the 1960s triggered a global notable economic transformation, elevating the country from one of the poorest in the world to an economically wealthy country in Africa. [3] [7] [9]

Revenue from diamond exports has enabled Botswana to invest in infrastructure, education, healthcare, and social welfare programs, which has been an extremely significant contributor to the standard of living for its citizens. [10] [11] Additionally, Botswana has implemented policies to promote local beneficiation, encouraging the cutting and polishing of diamonds within the country to capture more value from the industry. [12] [13] With its rich diamond reserves, its commitment to sustainability, and partnerships, Botswana has been significant in the diamond industry. [11] [14] [15] [16]

Debswana

De Beers store in Beverly Hills, California. DeBeersBevHills.jpg
De Beers store in Beverly Hills, California.

Debswana, established in 1969, is a mining company jointly owned by the Government of Botswana and the De Beers Group. [17] [18] It operates diamond mines in Botswana. [17] [19] However, Debswana has faced controversy over its labor practices, environmental impact, along with concerns about worker safety. [20] [21] [22]

It operates four major diamond mines in Botswana, being Jwaneng, Orapa, Letlhakane, and Damtshaa, so Debswana is considered to be crucial in the country's diamond production. [23] [24]

Other commodities

Botswana has substantial coal reserves, primarily located in the eastern region of the country, particularly in the Mmamabula coalfields. [25] [26] The development of coal mining, the Morupule Colliery, has enabled Botswana to use its coal resources for both domestic consumption and exportation. [27] However, challenges such as environmental concerns have made it so that trade and exports are limited and usually with neighboring countries. [28] [29] The country's gold reserves are mainly concentrated in the eastern regions, particularly in areas such as the Tati Greenstone Belt. [30] Exploration efforts by both local and international mining companies have led to the discovery of significant gold deposits. [31] Botswana has substantial copper deposits mainly located in The Kalahari Copper Belt. [32] The Kalahari Copper Belt, in particular, is a prominent geological formation known for its copper-rich ore bodies. [33] However, the commercial viability of copper mining in Botswana depends on factors like market demand. [34] Nickel mining in Botswana represents a burgeoning sector with considerable potential for growth and investment. [35] The discovery of nickel deposits in the northeastern parts of the country, notably in the Selebi-Phikwe region, [36] has started to bring more economic opportunity in this sector. [37] [36] The development of nickel mining infrastructure, such as processing plants and transportation networks, [38] is crucial for Botswana’s nickel industry. [39] [40] [41]

Political influence

San people

San woman in Botswana San lady botswana.jpg
San woman in Botswana

In the late 20th century and the early 21st century, the indigenous San people were forcibly relocated from their home for diamond companies to start exploring in order to find diamonds. [42] Their lands are located in the world’s richest diamond field. However, the government denies that there is any relation with mining and claims the relocation is to preserve the wildlife and ecosystem. [43]

Environmental impact

Mining activities in Botswana, particularly in diamond extraction, have raised concerns about their environmental impact. [44] Climate change is a serious issue for a water scarce country like Botswana. [45] The process of mining, including land clearing, excavation, and waste disposal, can lead to habitat destruction, [46] soil erosion, and water pollution. [47]

Related Research Articles

<span class="mw-page-title-main">Economy of Botswana</span>

The economy of Botswana is currently one of the world's fastest growing economies, averaging about 5% per annum over the past decade. Growth in private sector employment averaged about 10% per annum during the first 30 years of the country's independence. After a period of stagnation at the turn of the 21st century, Botswana's economy registered strong levels of growth, with GDP growth exceeding 6–7% targets. Botswana has been praised by the African Development Bank for sustaining one of the world's longest economic booms. Economic growth since the late 1960s has been on par with some of Asia's largest economies. The government has consistently maintained budget surpluses and has extensive foreign-exchange reserves.

<span class="mw-page-title-main">Mining</span> Extraction of valuable minerals or other geological materials from the Earth

Mining is the extraction of valuable geological materials and minerals from the surface of the Earth. Mining is required to obtain most materials that cannot be grown through agricultural processes, or feasibly created artificially in a laboratory or factory. Ores recovered by mining include metals, coal, oil shale, gemstones, limestone, chalk, dimension stone, rock salt, potash, gravel, and clay. The ore must be a rock or mineral that contains valuable constituent, can be extracted or mined and sold for profit. Mining in a wider sense includes extraction of any non-renewable resource such as petroleum, natural gas, or even water.

Debswana Diamond Company Limited, or simply Debswana, is a mining company located in Botswana, and is the world's leading producer of diamonds by value. Debswana operates four diamond mines in the eastern and central parts of Botswana, as well as a coal mine. Debswana is a joint venture between the government of Botswana and the South African diamond company De Beers; each party owns 50 percent of the company.

The Morupule Colliery is a coal mine located in Palapye, Botswana, owned and operated by Debswana, a partnership between the government of Botswana and De Beers. The coalfield is composed of four main seams, only one of which, the No. 1 Seam, is currently being mined, using bord and pillar mining methods.

The mining industry in India is a major economic activity which contributes significantly to the economy of India. The gross domestic product (GDP) contribution of the mining industry varies from 2.2% to 2.5% only but going by the GDP of the total industrial sector, it contributes around 10% to 11%. Even mining done on small scale contributes 6% to the entire cost of mineral production. Indian mining industry provides job opportunities to around 700,000 individuals.

<span class="mw-page-title-main">Mining in Western Australia</span>

Mining in Western Australia, together with the petroleum industry in the state, accounted for 94% of the State's and 46% of Australia's income from total merchandise exports in 2019–20. The state of Western Australia hosted 123 predominantly higher-value and export-oriented mining projects and hundreds of smaller quarries and mines. The principal projects produced more than 99 per cent of the industry's total sales value.

<span class="mw-page-title-main">Mining industry of the Democratic Republic of the Congo</span>

The mining industry of the Democratic Republic of the Congo produces copper, diamonds, tantalum, tin, gold, and more than 70% of global cobalt production. Minerals and petroleum are central to the DRC's economy, making up more than 95% of the value of its exports.

The mineral industry of Russia is one of the world's leading mineral industries and accounts for a large percentage of the Commonwealth of Independent States' production of a range of mineral products, including metals, industrial minerals, and mineral fuels. In 2005, Russia ranked among the leading world producers or was a significant producer of a vast range of mineral commodities, including aluminum, arsenic, cement, copper, magnesium compounds and metals, nitrogen, palladium, silicon, nickel and vanadium.

The second-largest mineral industry in the world is the mineral industry of Africa, which implies large quantities of resources due to Africa being the second largest continent, with 30.37 million square kilometres of land.With a population of 1.4 billion living there, mineral exploration and production constitute significant parts of their economies for many African countries and remain keys to economic growth. Africa is richly endowed with mineral reserves and ranks first in quantity of world reserves for bauxite, cobalt, industrial diamond, phosphate rock, platinum-group metals (PGM), vermiculite, and zirconium.

<span class="mw-page-title-main">Mining in the United Kingdom</span> Overview of the mining industry in the UK

Mining in the United Kingdom produces a wide variety of fossil fuels, metals, and industrial minerals due to its complex geology. In 2013, there were over 2,000 active mines, quarries, and offshore drilling sites on the continental land mass of the United Kingdom producing £34bn of minerals and employing 36,000 people.

Africa has a large quantity of natural resources, including diamonds, sugar, salt, gold, iron, cobalt, uranium, copper, bauxite, silver, petroleum, natural gas and cocoa beans, but also tropical timber and tropical fruit.

Mining in the United States has been active since the beginning of colonial times, but became a major industry in the 19th century with a number of new mineral discoveries causing a series of mining rushes. In 2015, the value of coal, metals, and industrial minerals mined in the United States was US$109.6 billion. 158,000 workers were directly employed by the mining industry.

<span class="mw-page-title-main">Mineral industry of Colombia</span>

Mineral industry of Colombia refers to the extraction of valuable minerals or other geological materials in Colombia. Colombia is well-endowed with minerals and energy resources. It has the largest coal reserves in Latin America, and is second to Brazil in hydroelectric potential. Estimates of petroleum reserves in 1995 were 3.1 billion barrels (490,000,000 m3). Colombia also possesses significant amounts of nickel and gold. Other important metals included platinum and silver, which were extracted in much smaller quantities. Colombia also produces copper, small amounts of iron ore, and bauxite. Nonmetallic mined minerals include salt, limestone, sulfur, gypsum, dolomite, barite, feldspar, clay, magnetite, mica, talcum, and marble. Colombia also produces most of the world's emeralds. Despite the variety of minerals available for exploitation, Colombia still had to import substances such as iron, copper, and aluminum to meet its industrial needs.

The geology of Botswana plays a significant part in the country's economy. The basement rocks of the Kaapvaal-Zimbabwe craton extend into Botswana whilst in the east and southeast, metamorphic rocks of Archaean age are dominant. A younger cover of Karoo rocks and post-Cretaceous Kalahari Group sediments conceal the western margins of these older rocks and largely conceal Proterozoic orogenic belts too. This younger stratum was laid down in the Kalahari Basin underlying large parts of the centre of the country. In the northwest of Botswana, more recent sediments overlie rocks of Meso- and Neoproterozoic age rocks, belonging probably to the Damara Belt.

<span class="mw-page-title-main">Mining industry of Liberia</span>

The mining industry of Liberia has witnessed a revival after the civil war which ended in 2003. Gold, diamonds, and iron ore form the core minerals of the mining sector with a new Mineral Development Policy and Mining Code being put in place to attract foreign investments. In 2013, the mineral sector accounted for 11% of GDP in the country and the World Bank projected a further increase in the sector by 2017.

The Orapa Power Station is a Peak load power generation plant located in the mining town of Orapa in northeastern Botswana in the Central District. It is built within the Debswana Diamond Company Ltd Orapa diamond mine fenced leased area and owned by the Government of Botswana who mandated the Botswana Power Corporation to manage, operate and maintain the facility.

Lynette Armstrong is a Botswana accountant and corporate executive, who was appointed as the acting chief executive officer of Debswana Diamond Company Limited, the largest diamond-mining company in the world, by value. She was appointed to that position in August 2019. Before that, from December 2015 until August 2019, Armstrong was the chief financial officer (CFO) at the same company. She relinquished he CEO/Managing Director role on 1 June 2022 when Andrew Maatla Motsomi became the new substantive CEO. Ms Armstrong resumed her role of CFO at Debswana.

Botswana continued to address the COVID-19 pandemic in 2021, beginning its vaccination process through the importation of vaccines. On November 11, Botswana was the location of the first documented case of the SARS-CoV-2 Omicron variant. 2021 also saw the discovery of two diamonds in Botswana that exceeded 1000 carats, becoming the third and fourth largest diamonds ever discovered. In relations with its neighbouring countries, Botswana continued to address violence at the Botswana–Namibia border, and it entered into the conflict in Cabo Delgado in support of the government of Mozambique.

References

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  2. ↑ "Botswana". www.debeersgroup.com. Retrieved 2024-05-02.
  3. 1 2 3 "Botswana: Mining a New Growth Model". IMF. Retrieved 2024-05-02.
  4. 1 2 3 "Botswana - Mining & Minerals". www.trade.gov. 2024-02-28. Retrieved 2024-05-02.
  5. 1 2 "About Debswana". Debswana.
  6. ↑ "Statsbots" (PDF).
  7. 1 2 "The contribution of diamonds to Botswana's development". www.debeersgroup.com. Retrieved 2024-05-02.
  8. ↑ Nocera, Joe (2008-08-09). "Diamonds Are Forever in Botswana". The New York Times. Retrieved 2024-05-02.
  9. ↑ de la Horra, Luis Pablo. "How Botswana Became One of Africa's Wealthiest Nations". Foundation for Economic Education.
  10. ↑ DeMarco, Anthony. "New Film Details How Botswana Benefits From Diamonds". Forbes. Retrieved 2024-05-02.
  11. 1 2 "Diamonds in the Rough: Exporting and Investing in Botswana's Mineral Brilliance". Prosper Africa. Retrieved 2024-05-02.
  12. ↑ Ben-Zvi, Gidon (2023-12-21). "A New Dawn for the Botswana Diamond Industry". Rapaport. Retrieved 2024-05-02.
  13. ↑ "Botswana Minerals Policy 2022" (PDF).
  14. ↑ "Botswana .:. Sustainable Development Knowledge Platform". sustainabledevelopment.un.org. Retrieved 2024-05-02.
  15. ↑ "Partnerships & Commitments, Botswana | High-Level Political Forum". hlpf.un.org. Retrieved 2024-05-02.
  16. ↑ "Botswana Has the World's Two Richest Diamond Mines". Israeli Diamond Industry. 2023-01-11. Retrieved 2024-05-02.
  17. 1 2 "Welcome to Debswana". Debswana. Retrieved 7 May 2024.
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  20. ↑ "Debswana Slave Labour Trade". Botswana Gazette. 2017-08-31. Retrieved 2024-05-06.
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  22. ↑ "www.imperial-consultants.co.uk/wp-content/uploads/2021/02/Final-report-Environmental-Impacts-of-Mined-Diamonds.pdf" (PDF). imperial-consultants.co.uk.
  23. ↑ "How Diamonds Transformed Botswana & Empower Its Youth". Diamonds Do Good. 2016-10-18. Retrieved 2024-05-06.
  24. ↑ "Diamonds in botswana" . Retrieved 2024-05-20.
  25. ↑ "Mmamabula Coal Mine". Global Energy Monitor. Retrieved 2024-05-02.
  26. ↑ "Masama Coal Mine". Global Energy Monitor. Retrieved 2024-05-02.
  27. ↑ "Morupule Coal Mine". Global Energy Monitor. Retrieved 2024-05-02.
  28. ↑ "Botswana - Countries & Regions". IEA. Retrieved 2024-05-07.
  29. ↑ Saubi, Onalethata; S Suglo, Raymond; Konka, Bheemalingeswara (21 May 2023). "Impacts of Fines at Morupule Coal Mine, Botswana". Momona Ethiopian Journal of Science. 15 (1): 1–16. doi: 10.4314/mejs.v15i1.1 .
  30. ↑ "Tati Greenstone Belt Project". Power Metal Resources plc (AIM:POW). Retrieved 2024-05-02.
  31. ↑ de Wit, Mike C J. "Prospecting History Leading to the Discovery of Botswana's Diamond Mines: From artefacts to Lesedi La Rona". www.ikcabstracts.com.
  32. ↑ "Botswana and Namibia Exploration". Sandfire. Retrieved 2024-05-02.
  33. ↑ "Kalahari Copper Belt Project". Kavango Resources. Retrieved 2024-05-02.
  34. ↑ "Copper-processing technologies: Growing global copper supply | McKinsey". www.mckinsey.com. Retrieved 2024-05-02.
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  36. 1 2 "Overview". Premium Nickel Resources Ltd. Retrieved 2024-05-02.
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  39. ↑ Goodstein, Eban (1983). "The Prospects for Copper and Copper-Nickel Investments in Botswana during the 1980's". Botswana Notes and Records. 15: 75–78. JSTOR   40979682.
  40. ↑ "State.gov".
  41. ↑ "New Life in Botswana Nickel?". allAfrica.
  42. ↑ Carroll, Rory (2003-02-20). "Diamond miners exploit land of the Bushmen". The Guardian. Retrieved 2024-05-02.
  43. ↑ "Botswana bushmen: Modern life is destroying us". BBC News. 7 January 2014. Archived from the original on 2016-03-25. Retrieved 24 July 2016.
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  45. ↑ "Botswana: Climate risk country profile - Botswana | ReliefWeb". reliefweb.int. 2021-01-18. Retrieved 2024-05-03.
  46. ↑ de Castro Pena, João Carlos; Goulart, Fernando; Wilson Fernandes, G.; Hoffmann, Diego; Leite, Felipe S.F.; Britto dos Santos, Natália; Soares-Filho, Britaldo; Sobral-Souza, Thadeu; Humberto Vancine, Maurício; Rodrigues, Marcos (July 2017). "Impacts of mining activities on the potential geographic distribution of eastern Brazil mountaintop endemic species". Perspectives in Ecology and Conservation. 15 (3): 172–178. doi:10.1016/j.pecon.2017.07.005. hdl: 11449/170082 .
  47. ↑ "Environmental Impact of Open-Pit Mining". Coalition to SAVE the Menominee River, Inc. Retrieved 2024-05-03.
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