Diamond production in Botswana, the world's largest exporter of diamonds, increased from 31.1 million carats in 2004, to 31.9 million carats in 2005, reported Baledzi Gaolathe, the country's finance and development planning minister in yesterday's budget speech.

In 2005, 574 diamond prospecting licenses were issued, compared to 510 in 2004. In addition, two further diamond prospects in the Orapa and Martins Drift are being evaluated. Gaolathe told parliament that "the increase in prospecting is a demonstration of the confidence the mining companies have in the future of the economy of Botswana."

Employment at the four diamond cutting facilities in Botswana increased from 650 in 2004 to 785 in 2005. In addition, four new cutting factories were licensed during the year.

The minister also reported a cumulative 19 percent increase in diamond prices, in US dollar terms, during the financial year.