https://www.engineeringnews.co.za

Synthetic diamonds threaten Botswana’s mining-based economy, says former minister

30th August 2016

By: African News Agency

  

Font size: - +

GABORONE – The expansion of the global synthetic diamond market poses a threat to the economy of Botswana which depends on the mining and sale of the natural mineral, a former government official has warned.

Addressing a gala dinner of the Botswana Institute of Chartered Accountants in Gaborone on Monday, former Minerals, Water and Energy minister David Magang said the fact that top diamond miner De Beers was preparing to join the flourishing synthetic diamond market meant there would soon be limited market options for the Botswana diamond.

“Indications are that De Beers is about to enter the synthetics market too to peg its claim on the flourishing market. Clearly, synthetics represent one of the greatest threats to Botswana’s economic well-being for the ramifications are that even if our mines were to continue to be operational for the next 100 years, no one would buy our diamonds if synthetics became fashionable,” Magang said.

Magang said many natural diamond producers were gradually shifting to synthetic diamonds, which were fast becoming “fashionable” and earning dealers up to $9-billion a year. Further, he said the rising capital and expenditure costs of operating natural diamond mines meant that with time, there would be a decrease in diamond revenue for Botswana.

He said while it was generally agreed that Botswana’s diamond mines would remain productive at least until 2050, there had been a 40% drop in diamond prices, a closure of mines and the loss of over 1 000 jobs in the industry over the past three years.

Despite concerted government efforts to diversify the economy from total dependence on diamond sales, the mineral still generated more than 70% of the Botswana’s gross domestic product (GDP).

Edited by African News Agency

Comments

Showroom

Showroom image
Alcohol Breathalysers

Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.128 0.183s - 156pq - 2rq
Subscribe Now