Botswana and De Beers, the global diamond giant, have jointly approved a substantial $1 billion investment to transition the world’s most prolific diamond mine by volume, the Jwaneng mine, from an open-pit site to a sophisticated underground operation. The decision, announced by the Debswana Diamond Company’s board on Wednesday, is a strategic move aimed at extending the mine’s lifespan by an impressive 20 years.

The Jwaneng mine is a cornerstone of Debswana, a collaborative effort between the Botswana government and De Beers, contributing approximately 70 percent of the company’s profits. In the face of a global decline in demand for diamonds, this bold investment is anticipated to yield up to nine million carats annually. Despite market challenges, the project signifies a commitment to securing the future of Botswana, a nation where diamond mining constitutes a significant one-third of the GDP.

De Beers CEO, Al Cook, emphasized the significance of investing in underground operations, stating, “Investing in underground operations is fundamentally important to the future of Botswana as a nation, to the long-term ambitions of the De Beers Group, and to the supply outlook for the global diamond industry.” The decision aligns with broader industry trends where diamond miners in the region are compelled to delve deeper, incurring higher costs, as surface-level gem deposits become increasingly depleted.

Botswana stands as Africa’s foremost diamond producer, and the partnership with De Beers, facilitated by the government and mining giant Anglo American, underscores the nation’s commitment to sustaining its position in the global diamond market. In a pivotal agreement reached last year, Botswana secured a new 10-year deal for the sale of rough diamonds produced by Debswana, along with a 25-year extension of mining licenses.

This visionary investment not only secures economic stability for Botswana but also aligns with De Beers’ long-term goals. The decision comes at a crucial juncture, showcasing resilience in the face of market challenges and emphasizing the commitment to innovation and sustainability in the diamond industry.

As the Jwaneng mine embarks on its transformation into an underground operation, it not only ensures the continued prosperity of Botswana but also contributes to shaping the future supply dynamics of the global diamond market. The mining community eagerly awaits the outcomes of this strategic endeavor, poised to witness the evolution of one of the world’s most significant diamond mining operations.