Botswana: Jwaneng Diamond Mine, launch Multi-billion dollar project

Debswana was proud to host a ceremony at Jwaneng Mine today to celebrate the official launch of Jwaneng Mine's Cut-8 extension project. Guests of honour were H E President Khama, President of the Republic of Botswana and Nicky Oppenheimer, Chairman of both De Beers Group and Debswana.

Jwaneng, the richest diamond mine in the world, is owned by Debswana and contributes 60-70% of Debswana's total earnings.

In November 2009 the shareholders of Debswana gave the green light to proceed with a major extension project known as Cut 8 – which will secure approximately 102 million more carats and extend the life of the mine out to 2025. This investment ensures continuity of supply and could be worth in excess of US$15 billion over the life of the mine.

The Cut 8 project is the largest single investment in the history of Debswana and the Botswana mining industry.

Debswana will invest BWP 3.6 billion (US$500 million) in capital expenditure and, taking into account all project stages – including feasibility, design, implementation and mining operations, as well as the cost of plant and equipment – the estimated project investment is likely to total BWP 24 billion (US$3 billion) over the next 15 years including capital expenditure.

To date, 2,700,000 man-hours have been worked on the project, with only two minor lost-time injuries – a testimony to the project's determination to ensure a safe and productive work environment. The Construction Project is approximately 20% complete and will be finished at the end of 2011. As a result of the project's Waste Mining Operation, Cut 8 will remove 658 million tonnes of waste material, or three times more than the current rate per year.

Cut 8 will not increase the amount of diamonds produced, but rather enable Jwaneng Mine to continue its current production levels.

Job Creation: Investing in Botswana's Future

The public-private business model ensures that when Debswana succeeds, Botswana succeeds. In fact, over 2500 people are employed at Jwaneng mine and over 1400 Botswana citizens are working as a direct result of Cut 8. In total, 86% of the workforce are Botswana citizens. In addition, 51% of contracts awarded to-date have been to citizen-owned or Botswana-based companies.

However, Cut 8 does more for Botswana over and above creating jobs. By extending the life of Jwaneng, Cut 8 is part of the process of building a strong Botswana economy that will endure far longer than Jwaneng Mine. In line with the aspirations of the Government's Diamond Hub, Debswana is committed to assisting in the development of local and citizen business through the procurement of goods and services from locally owned businesses which will, as a result, stimulate Botswana's overall economy.

Rise of a Super Pit: Growth of Jwaneng Means Success for Botswana

The technical achievement of taking a world class mine to the level of a "super pit" – one of the biggest open cast mines in the world – demonstrates Botswana's leadership in African mining and furthermore, Africa's leadership in global mining. Jwaneng's Cut 8 positions Botswana as a world leader, able to compete with any other global economy.