After Diamonds . . . Botswana's Big Discovery
April 16, 26
It was in March 1967 that diamonds were first discovered in Botswana, at the Orapa kimberlite pipe. They transformed the fortunes of one of Africa's poorest countries almost overnight.
It was in January 2026 that rare-earth elements were first discovered in Botswana, at the Gcwihaba (Jiquaha) Metals Project in the northwest of the country. The potential impact is beyond anything we can imagine.
Botswana was built on diamonds. A nation of subsistence farmers, many of them illiterate and malnourished, was able to build roads, schools, hospitals, water and electricity infrastructure and much more.
Today diamonds still account for over 70% of Botswana's exports and roughly a quarter of its GDP.
But the writing is on the wall. Lab growns have flooded the market, demand for natural stones has weakened, especially in the US and China, and Botswana's diamond revenue has halved.
But as one door begins to close, another seems to be opening. The discovery of rare earth minerals could well eclipse that of diamonds six decades ago.
We're not just talking about reviving a faltering economy, we're talking about propelling it to another level.
Diamonds may satisfy a desire for luxury, but rare‑earth elements (REEs) are indispensable in the modern world.
Everybody needs them. The list of 15 elements - all discovered at Gcwihaba, Botswana - sounds like something from Tom Lehrer's classic "The Elements" song.
There's Cerium, Dysprosium, Erbium, Europium, Gadolinium, Holmium, Lanthanum, Lutetium, Neodymium, Praseodymium, Samarium, Terbium, Thulium, Ytterbium and Yttrium.
Chances are you've never heard of a single one of them. But the modern world couldn't function without them. Life without diamonds would lack sparkle, but life without REEs would set us back a century.
They are the vital ingredients in virtually every item of 21st century technology - smartphones, wind turbines, laptops, electric vehicle batteries, TV monitors, LED lights, medical imaging, data centers, nuclear power production to mention just a few.
Tsodilo Resources Limited, a Canadian mineral‑exploration firm, was looking for copper when it "struck gold" and found all 15 REEs (as well as copper, cobalt, nickel, vanadium, and silver) all in the same place, in shallow and relatively easy-to-mine rock.
These REEs are seriously valuable. Copper currently trades at $13 per kg. Terbium, used for high‑temperature magnets in electric‑vehicle motors and wind‑turbine generators, trades at a little over $4,000 per kg.
China currently dominates the production and processing of rare-earth minerals, but the Gcwihaba discovery - all minerals together and accessible - puts Botswana in an enviable position.
Commercial production of Terbium, or any of the other minerals mentioned above, is some years off. But they're a vital part of the supply chain for a wide range of essential products.
Until now it's had most of its eggs - or diamonds - in one basket, at the mercy of declining consumer demand and cheaper, man-made alternatives.
REEs are a different ball game. A new discovery for a new era.
Have a fabulous weekend.