Debswana Revenue up 11% to $2.6 Billion

The Botswana diamond industry had a record year, mining 31.1 million carats in 2004, racking in 11.720 billion pula ($2.578 billion), despite mechanical problems and a two-week strike and benefiting from rising rough diamond demand.

According to Debswana Managing Director Blackie Marole, the company faced a number of technical challenges last year, such as the breakdown of major equipment and the impact of the two-week strike but still managed to break its own record of 30.4 million carats set in 2003.

At the end of this month the company will start a commissioned strategy review process, expected to be completed in three months, Marole said.

One of the issues at hand is assessing options for new plants in the Jwaneng, Orapa and Letlhakane mines in the short and medium term and options for underground mining.

Debswana is also reconsidering its involvement in an unnamed tourism project, freezing all expenditures until its board decides how to proceed.

The miner is also involved in a farming project, Masedi Farms, which Marole feels “has played a significant role in the progress of the area today”. However he adds that despite the positive performance, the cost of doing business is such that the company should withdraw from the project and hand it over to more “appropriate agricultural custodians”.