Optimising Resources For Africa

Africa’s leading country in diamond mining, Botswana has optimized its operations to create more job opportunities for its people and increase economic value. Botswana is currently home to the world’s most valuable diamond mine, Jwaneng as well as the world’s largest diamond by area, Orapa.

While many African countries have suffered what’s known as the resource curse, where countries with an abundance of natural resources fail to create positive economic growth, Botswana has managed to turn its diamond mines into a countrywide blessing.

Crystal Orderson explains the resource curse, and how Botswana found value in collaboration to become a leader in the diamond industry. It was also announced that Botswana will be the permanent secretariat of the Kimberley process, which unites administrations, civil societies, and industry in reducing the flow of conflict diamonds.

“The UN says that we [Africa] are home to 30% of the world’s natural resources [minerals]. But the reality is that not everyone [in Africa] has benefited.”

“Botswana realized that it’s not a solo effort. They do need banks to be involved.”

In 2021, Rand Merchant Bank Botswana provided a $50 million working capital facility to Lucara Diamond Corp.

The working capital facility was required to help progress the early pre-work required to take the Karowe mine into its next stage of growth from open cast to underground operations, which will extend the life of the mine.

Karowe mine is one of the world’s foremost producers of large, high quality, Type IIA diamonds in excess of 10.8 carats. This transaction has enabled Lucara to manage the gap between their tender cycles from a working capital perspective and to continue with the development of the underground expansion project while working through project financing. This will extend the life of the mine for a further 20 years – ensuring continued employment and contribution towards economic growth in Botswana.