The Mining Industry in Botswana 2024

Challenges

Kalahari Desert sand, which complicates the discovery of mineral deposits, covers about 75% of the land area. Weak global growth is affecting demand for diamonds and other minerals.

Introduction

Although Botswana’s mining industry shrank in 2023, largely due to a decrease in diamond prices, production volumes of minerals such as copper and silver rose sharply due to mines ramping up output. Mining industry exports accounted for more than 70% of total export earnings. The industry looks set for growth as copper and silver production will increase due to mine expansions, new coal mines are being developed, and coal bed methane, manganese and nickel production should commence in the medium term. The country is ranked highly in terms of policy and investment attractiveness. A major challenge is that sand covers about 75% of the land area, making it difficult to discover new mineral deposits.

Opportunities

Large areas of the country are underexplored. The government is very supportive of the mining industry.

Outlook

Prices of most minerals are expected to decline in 2024 due to weaker demand and ample supply. De Beers expects a gradual recovery in diamond demand and prices in 2024, with larger price increases over the long term. The industry is expected to become more diverse as a greater variety of minerals will be produced by a larger number of companies. Diamond production is set to carry on for decades, while copper and silver production will increase due to mine expansions. The production of coal should increase as new mines are being developed, while coal bed methane, manganese and nickel production should commence in the medium term. Botswana’s mining industry therefore looks to be entering a period of growth.

Report Coverage

This report on the mining industry in Botswana includes information on diamonds, the most important product by far, as well as aggregate, clay, coal, copper, and soda ash. It includes information on the size and state of the industry, notable players, corporate actions, trade and key trends and issues. There are profiles of 23 companies including Debswana, which dominates the industry and the diamond sector, state-owned Morupule Coal Mine, local companies Botswana Ash and Kalahari Ash, South African Raubex Group subsidiary Belabela Quarries, and foreign-owned companies such as Khoemacau Copper Mining, Lucara Botswana and Jindal Resources.

Trends

Botswana is experiencing growing interest in its critical minerals, especially copper, manganese and nickel. Most products of the mining industry are exported to be further processed in other countries.