GABORONE, Botswana – The Debswana Diamond Company, a joint venture between the Government of Botswana and global diamond giant De Beers, has announced a temporary suspension of production at some of its major mines due to ongoing weakness in the global diamond market.
The company confirmed the move in a statement issued on Friday, June 6, stating that the pause was necessary to help it manage operational costs amidst falling demand for diamonds worldwide.
Debswana said it would reduce its overall diamond output from 17.93 million carats in 2024 to 15 million carats in 2025. This follows a 27% production cut this year and a 46% drop in sales revenues in 2023, signalling continued pressure on the company’s profitability.
“Debswana Diamond Company continues to prudently navigate the challenging market conditions, including sustained low demand across the diamond pipeline and emerging pressures such as U.S.-imposed tariffs,” the statement read.
Production Halts and Cost-Saving Measures
According to the company, operations are being temporarily halted at key facilities such as the Jwaneng Cut 9 and Orapa mines. This is in addition to earlier suspensions at the Letlhakane tailings plant and the Jwaneng Modular plant, which were shut down in April 2024.
These temporary shutdowns are expected to bring significant cost savings, particularly in terms of fuel, electricity, and other production-related expenses.
Debswana also disclosed that while some capital projects will continue—especially the Jwaneng underground expansion, which is seen as critical to the company’s long-term plans—other capital-intensive initiatives would be slowed down as part of its cost-saving strategy.
The company, however, assured that no involuntary job losses are expected, although voluntary separation packages remain available to workers interested in exiting the organisation.
Diamonds Power Botswana’s Economy
Debswana is a major player not just in Botswana’s mining sector but in its overall economy. It contributes over 90% of the country’s total diamond output, and diamonds account for nearly 30% of national revenue and 75% of foreign currency earnings.
But with diamond prices and demand falling since the second half of 2023, Botswana has taken a hit. The country’s economy contracted by 3% in 2024, and the International Monetary Fund (IMF) has warned of a further 0.4% economic decline in 2025 if market conditions do not improve.
Industry analysts blame the slump on a combination of factors, including a global slowdown in luxury spending, a surge in synthetic diamond production, and trade tensions between the U.S. and major exporters, which have led to higher tariffs and disrupted traditional diamond markets.
Looking Ahead: Long-Term Caution, Strategic Adjustments
Debswana’s decision to scale down production is being viewed as a strategic move to protect its balance sheet and align supply with market realities. While demand is expected to recover gradually, particularly in key markets like the United States, India, and China, the timeline remains uncertain.
Experts say the company is taking the right approach by preserving cash flow, avoiding overproduction, and investing in future-ready operations like underground mining technology, which is considered more sustainable and cost-efficient in the long term.
Botswana’s government, which relies heavily on diamond revenue to fund its budget and development programmes, may face increasing pressure to diversify its economy. Officials have already signalled intentions to focus more on tourism, agriculture, and services to reduce overdependence on mining.
Meanwhile, labour unions and workers are watching the situation closely, particularly around job security and the possibility of prolonged closures if market conditions fail to improve.
