Africa is known for the richness of its subsoil. Several countries stand out in the production of diamonds. This is the case of Botswana, the largest African producer and second largest in the world behind Russia, according to data published by the Kimberley Process certification system.
The country’s mining sector is driven by diamond production. These precious stones represent 80% of the country’s exports, 38% of budget revenues and 23% of customs revenues. This performance is the result of the partnership between the Botswana State and the South African giant De Beers, a subsidiary of the British giant Anglo American.
“If we look at the partnership between the De Beers and the Botswana state, we realize that the government receives 85% of diamond revenues, and De Beers 15%. This relationship between the government and De Beers has been very beneficial for us,” said Charles Siwawa, president of the Mines Chamber, at RFI.
A 2,492-carat diamond found in the Karowe mine in Botswana
The two largest mines in Debswana, the case Jwaneng and Orapa, represent 92% of Botswana’s diamond production in terms of value. The Jwaneng project is the largest mine in terms of production value in the world. An expansion plan is underway to extend the life of the mine until 2040. The company is preparing an expansion project at the Lethlakane mine, where open-pit operation ended in November 2016. The project will allow it to treat mining residues for an additional 25 years. In addition to De Beers, the country also hosts Lucara Diamonds, a Canadian company listed in Toronto. It operates on the Karowe mine, the third largest mine in Botswana by production value. It should also be recalled that a diamond of an exceptional size of 2,492 carats was found in the Karowe mine. The announcement was made by Lucara Diamond Company, Thursday, August 22, 2024 in a press release.
“We are delighted to have recovered this extraordinary diamond, ” said William Lamb, CEO of Lucara, quoted in the press release, whitout details on the value of the discovery or its quality. According to the Financial Times, which gives sources close to Lucara, the stone could be worth more than 40 million USD . Lucara Botswana’s CEO, Naseem Lahri, presented the stone to the country’s president, Mokgweetsi Masisi, in his office in Gaborone on the afternoon of August 22.
“It was the largest diamond discovered in Botswana to date and the second in the world,” President Masisi said, congratulating the company. With a diamond of this size, we can build roads, added the president.
The largest Africa reserves in Democratic Republic of Congo
The country has the largest diamond reserves in Africa, according to Statista. With reserves estimated at 150 million carats. Diamonds are one of the main sources of export revenue in the Democratic Republic of Congo (DRC). The DRC managed to ship 3,808,372 carats of diamond estimated at 41.9 million USD, according to the country’s Ministry of Mines. These revenues contribute to the financing of the government and the balance of payments of the DRC. During this period, industrial production allowed an export of 598,450 carats for an estimated value of more than 8 million USD.
“Overall, this production remains at a fairly high level for this country’s diamond sector. The structural morphology of diamond production in the Democratic Republic of Congo is an atypical morphology, because it makes it appear to us that the artisanal sector is the one that generates the majority side of the diamond return at the level of this country. Next to this one, we have industrial production, but it remains minor compared to artisanal production“, says Serge-Parfait Dioman, International Expert in oil and energy industries, quoted by Africa24.
With regard to the DRC’s diamond production, it fell by 30.58% in the first half of 2023 compared to the corresponding period of 2022. This production has been dominated in particular by the craft sector with a total volume of 3,209,913 carats of diamonds exported, thus generating revenues of the order of 33.8 million USD.
“This downward trend, however significant, is not likely to last. Contrary to what no one might believe, this is not at all a voluntary recession to raise diamond prices on international markets. In any case, for a production that remains artisanal, let’s say that it remains very sensitive to everything that there is as a cyclical hazard of the conflict type in the area, of the climatic hazard genre, “ adds Serge-Parfait Dioman.
The United Arab Emirates and Belgium, main buyers
Congolese diamond exports go to two priority destinations, in this case the United Arab Emirates with 4.37 million carats in 2023, and 3.31 million carats for Belgium. Other destinations in order of importance are India, Armenia and United-Kingdom. According to specialized media, the DRC is home of five projects and opportunities: Blue Diamond, K North, Kasai Diamond, Kayembe Project and Soneco Sarl Project. In DR Congo, diamond deposits are concentrated in the Eastern Kasai, near Mbuji-Mayi, and in the Western Kasai. They are alluvial, eluvious and primary and closely related to kimberlite chimneys. Diamond is also found in Lower Congo, Upper Congo, Maniema, Equator and Bandundu. Diamonds are an important resource for the DRC economy. However, the African country’s diamond industry is associated with challenges such as smuggling, corruption, and armed conflict.
The good vein of Angola
The diamond sector is booming in Angola. The country ranks fifth among producers and exporters. Most (75%) of Angola’s diamond production comes from the Catoca mine, owned by the consortium Alrosa (Russia) and the national diamond company, Endiama. Luele is the largest diamond mine in the country with about 628 million carats exploitable over a lifespan of 60 years.
This mine managed by the mining company Catoca, controlled by the state, will strengthen the country’s position as one of the world’s largest producers of diamonds. According to details given by Ganga Junior, Chairman of the Board of Directors of Endiama, another Angolan company shareholder of the project, Luele can deliver up to 1 million carats per year, or more than half of Angola’s annual production. 3000 direct jobs are expected by 2026 on this project.
The Luele mine will allow Angola to increase its public revenues, strengthening the place of the mining sector within the economy. Developing the diamond industry is indeed a priority for President João Lourenço, in order to reduce the country’s dependence on oil revenues. The Luele diamond mine is 50.5% owned by Catoca, a company in which the Russian Alrosa has a 41% stake. Endiama controls 25% of Luele’s interest, compared to 19.5% for Falcon, 4% for Reform and 1% for IGEO.
South Africa, land of blue diamonds
It was in South Africa that the first African diamonds were discovered. Although it is no longer the leading producer, the country remains essential on the diamond market today. Its large dykes and alluvial deposits produce diamonds of exceptional quality, especially those of blue, which are very rare and expensive. The Cullinan mine, from which the largest rough diamond ever discovered came out, has now been supplanted by the Finsch and Venetia mines.
The open-pit mine Venetia, is the first source of diamond production in South Africa with 40% of annual production. Petra Diamonds owns three former De Beers mines, expected to operate for another 25 years, according to Statista. The mining company Diamcor is also found in South Africa, active on the Krone-Endora project and whose exploration rights cover about 5888 ha and adjacent to De Beers’ Venetia Diamond Mine. The South African diamond sector is often overshadowed by those of gold, platinum or other products for which the rainbow nation is a leader.
Namibia makes dream with its sea mine
Debmarine is currently the only large-scale diamond sea mine in the world. It is owned by Namdeb Holdings, a joint venture (50/50) of De Beers and the Namibian government. The project houses, according to data published by the Kimberley Process certification system, more than 80 million carats. They account for approximately 65% of Namdeb Holdings’ total diamond production and 90% of its diamond resources. Marine diamond mining now produces higher annual volumes than land-based diamond mining in Namibia.
The Letseng mine in Lesotho, the tallest diamond mine in the world
Lesotho is home to the world’s highest diamond mine. This is the Letseng mine, owned by the mining company Gem Diamonds It is located at an altitude of 3000 m. The site is known for its ability to produce white diamonds of exceptional quality. Gem Diamonds recovered a 910-carat stone from the mine in January 2018. The stone is considered the fifth largest “gem” quality diamond ever discovered. In Lesotho, Gem Diamonds announced on August 28, 2024 the discovery of a 129.71 carat white diamond. Type Il, it is the 10th diamond of more than 100 carats delivered by the Letseng mine since the beginning of 2024.
These African countries, as diamond leaders, play a crucial role in global supply, while shaping the future of this industry.
