Debswana Renews Mining Operations

Diamond mining at three of Debswana’s four diamond mines restarted Wednesday after a 50 day halt in production. Some 5,800 people returned to work at Jwaneng, Orapa and Letlhakane while work at the fourth and smallest mine, Damtshaa, and at Orapa No.2 Plant, will remain suspended until the end of 2009.

Debswana, a joint venture between the Government of Botswana and De Beers, suspended production at the mines because of reduced demand for rough diamonds, a result of the global economic crisis.

According to De Beers Botswana Chairman Stephen Lussier, the pause in production enabled the company to withstand the economic crisis. 

“As retailers have lowered their level of purchasing it has taken time for inventory to work through the pipeline leading to a disproportionately negative knock-on affect on production. We have begun to see signs of improvement in the market and expect this to continue as the year unfolds,” Lussier said.

Debswana said employees remained on full pay during the 50 day period, and that it carried out maintenance work to ensure the mines run at an optimal level as demand begins to recover.