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Mining industry of Botswana

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The Jwaneng diamond mine, the second largest in the world,[1] and richest by value.[2]

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]

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

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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

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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

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Main article: Debswana
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

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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

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San people

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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

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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]

References

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  1. ^ Groot, Robert (2022-09-30). "Top 10 Biggest Diamond Mines". Royal Coster Diamonds. Retrieved 2024-05-02.
  2. ^ "Botswana". www.debeersgroup.com. Retrieved 2024-05-02.
  3. ^ a b c "Botswana: Mining a New Growth Model". IMF. Retrieved 2024-05-02.
  4. ^ a b c "Botswana - Mining & Minerals". www.trade.gov. 2024-02-28. Retrieved 2024-05-02.
  5. ^ a b "About Debswana". Debswana.
  6. ^ "Statsbots" (PDF).
  7. ^ a b "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. ^ a b "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. ^ a b "Welcome to Debswana". Debswana. Retrieved 7 May 2024.
  18. ^ "Debswana Diamond Company | Mining Indaba". miningindaba.com. Retrieved 2024-05-06.
  19. ^ "Debswana: A Pillar of the Botswana Economy | Bus Ex". www.bus-ex.com. Retrieved 2024-05-06.
  20. ^ "Debswana Slave Labour Trade". Botswana Gazette. 2017-08-31. Retrieved 2024-05-06.
  21. ^ "All Risk and No Reward" (PDF). Center for Economic and Social Rights (CESR). pp. 14–85.
  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.
  35. ^ "Norilsk Nickel - AGE (African Growing Enterprises) File". Institute of Developing Economies. Retrieved 2024-05-02.
  36. ^ a b "Overview". Premium Nickel Resources Ltd. Retrieved 2024-05-02.
  37. ^ "Selebi Nickel, Copper and Cobalt Project". Eastport Ventures Inc. Retrieved 2024-05-02.
  38. ^ Thuline, John (2024-02-06). "How Nickel Alloy Is Used in Chemical Processing Plants". Wieland Diversified. Retrieved 2024-05-02.
  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.
  44. ^ "Botswana | Climate Change Adaptation". www.adaptation-undp.org. Retrieved 2024-05-03.
  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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