Debswana Seeks External Funding for $6bn Jwaneng Expansion
June 17, 25
(IDEX Online) - Debswana, the joint venture between De Beers and the Botswana government, will be seeking external finance for the $6bn transition of its flagship Jwaneng mine from open pit to underground operation.
Managing director Andrew Motsomi said the company was being evaluated by credit rating agencies so it could approach global financial markets. He was speaking yesterday (16 June) at the Future of Mining Summit 2025 in Gaborone, Botswana.
Debswana generally finances capital projects from its own funds or from shareholders, but is battling a slump in revenue as a result of the prolonged decline in global diamond demand.
It cut production by 27 per cent last year and has cut forecast production for this year by 16 per cent.
A $1bn investment in the Exploration Access Development phase, drawing on internal and shareholder resources, was approved last year, but the long-term funding strategy now explicitly includes tapping global financial markets. The Jwaneng underground project officially started in May 2024.
Jwaneng is the richest diamond mine in the world by value and accounts for around two thirds of Debswana's total revenue.
It began operations in 1982 but now needs to expand further underground to extend the life of the mine beyond 2034.
Pic of Jwaneng mine, courtesy Debswana.