• Pages
  • Editions
01 Cover
02 Welcome Letter / Sections
03 Index & Interview Directory
04 Section 1: Introduction
05 The Road to Recovery
06 ABSA Group Interview
07 PwC Interview
08 Regional Trends
09 Sustainability & ESG Gaining Momentum
10 SRK Consulting Interview
11 Nafasi Water & ZN Geo Services Interviews
12 Section 2: Production, Development and Exploration
13 Precious Metals
14 Gold Fields Interview
15 Harmony & Pan African Resources Interviews
16 Base and Energy Metals
17 Lepidico Interview
18 Trevali Mining Interview
19 Orion Minerals Interview
20 Vedanta Zinc International Interview
21 Kumba Iron Ore Interview
22 Diamonds
23 Lucara Diamond Interview
24 Debswana Interview
25 Section 3: South Africa
26 South Africa
27 Ministry of Mineral Resouces and Energy SA Interview
28 Minerals Council SA Interview
29 Seriti & Exxaro Resources Interviews
30 NSDV & ENSafrica Interviews
31 Insights on South African Mining Industry's Health
32 Section 4: Namibia
33 Namibia
34 Chamber of Mines Namibia Interview
35 RMB & Standard Bank Namibia Interviews
36 Walvis Bay Salt Holdings Interview
37 Insights on Namibia as a Mining Investment Destination
38 Section 5: Equipment and Services
39 The Journey to Modern Mining
40 Murray & Roberts Interview
41 Kal Tire Interview
42 Eazi Access Interview
43 METC Engineering Interview
44 Insights on Digital Mining Revolution in Africa
45 MEMSA Interview
46 Fabchem Mining Interview
47 Insights from Local Manufacturers
48 Energy
49 juwi Interview
50 Engie Impact & Vivo Energy Interviews
51 Howden Interview
52 Section 6: Sponsored Company Profiles
53 Trevali Company Profile
54 Murray & Roberts Company Profile
55 Concluding Remarks
56 Credits

Lynette Armstrong, Acting Managing Director,

DEBSWANA

"The ongoing market challenges and diminished revenues as a result of the global economic recession induced by COVID-19 have further prompted Debswana to accelerate the implementation of its transformation program."

Looking back, what have been some of Debswana’s greatest milestones?

Milestones include the the commissioning of the Jwaneng Aquarium in 2000, which was the first of its kind and attracted immense global interest from the diamond industry, thereby promoting Debswana’s leadership in applying cutting edge technology. Over the years Debswana discovered numerous large stones from its mines, key amongst them being a 446 carat diamond in 1993, a 40.11 carat blue diamond of exceptional clarity in 2018 from Debswana OLDM mine, named the “Okavango Blue”, and recently in June 2021, Debswana Jwaneng mine recovered the largest high quality gem diamond in the mine’s history weighing 1,098 carats, also the third largest gem quality diamond to be discovered worldwide.

Debswana prides itself as a direct contributor to Botswana’s development. Our CSI history in the mining communities tells a positive story of a company that successfully delivered on its purpose. Debswana has funded infrastructure development and many community projects in the zones of influence ranging from health, education, environment, sports development, and arts and culture.

Can you give an update on production and development plans for your assets?

During 2021 Debswana has successfully retired Orapa mine plant 1 and placed Damtshaa mine under care and maintenance until further notice. Plant 1 has been operational since the inception of the mine in 1971. Its closure is driven by the cost of keeping it safely operating as well as the opportunity created by the planned further expansion of the more modern and efficient No. 2 plant.

Externally, the ongoing market challenges and diminished revenues as a result of the global economic recession induced by COVID-19 have further prompted Debswana to accelerate the implementation of its transformation program.

In Jwaneng, a successful transition of the Cut 9 Waste Mining from Contract by Majwe Mining Joint Venture (MMJV) to Hybrid (Owner with some services outsourced). This was reached though a handshake between Debswana and Majwe Mining on April 04th, 2021. The Cut 9 contract is a waste stripping project that started in 2019 and is expected to end in 2027, extending Jwaneng life of mine to 2035. The transition has been smooth, and no safety incidents have been recorded.

Concerning the widely reported US$6 billion deployment to the Jwaneng underground mining project, it is important to note that this amount is an estimate, and that the project is still at pre-feasibility study.

How did you overcome the challenges posed by the pandemic?

When WHO declared COVID 19 as a Global Health pandemic, Debswana, in collaboration with the Government of Botswana and De Beers, reviewed risk management programs and incorporated COVID 19 risks and controls. In addition, Debswana contributed a total P25 million towards vaccine sourcing and rollout.

The diamond industry suffered, however, Bain & Consulting reports that the industry fared better compared to other personal luxury markets. The 15% to 33% decline in revenues estimated by Bain was however furthering a downward trend from the 2017 peak. While the diamond industry hasn’t recovered to its recent peak years, 2021 has seen great improvement when compared to the 2020. The first half of the year experienced strong demand. The increased confidence in the market was driven by the US and Chinese demand for both rough and polished goods. Demand is rising for both the European and Indian markets. While COVID 19 remains a global challenge, the positive sentiment in the diamond market is expected to be sustained for the remainder of the year with vaccination expected to play a positive role in the recovery.

How would you characterize the overall health of the mining industry in Botswana?

The Index of Mining Production stood at 74.4 during the first quarter of 2021, showing a negative year on-year growth of 12.0%, from 84.6 registered during the first quarter of 2020. The main contributor to the decline in mining production came from the diamonds sector, which contributed negative 11.7%. The decrease was a result of weaker trading conditions mostly linked to Covid-19 protocols restrictions. Soda ash was the only positive contributor in the mining production, however, its contribution was insignificant to offset the negative contribution from diamonds. The quarter-on-quarter analysis shows an increase of 16.3% from the index of 64.0 during the fourth quarter of 2020 to 74.4 observed during the first quarter, indicative of an improvement as we move into 2021.

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South Africa