The mining industry of Botswana has dominated the national
economy of Botswana since the 1970s, being a
primary sector industry.[3]Diamond has been the leading component of the
mineral sector[4] ever since production of gems started being extracted by the mining company
Debswana.[5] Most of
Botswana's diamond production is of
gem quality, resulting in the country's position as the world's leading producer of diamond by value.[4]Copper,
gold,
nickel,
coal and
soda ash production also has held significant, though smaller, roles in the economy.[4]
In 2022, mining accounted for about 16% of Botswana's real
gross domestic product (GDP).[6] Most of Botswana’s mineral industry consists of diamonds.[7] Beyond diamonds, Botswana also boasts abundant mineral resources such as coal, copper, nickel, and soda ash, along with granite, further diversifying its mining sector. However, this sector, despite being very important, faces challenges, mainly due to lack of
infrastructure development.
Diamonds
Botswana's diamond industry is very important to its economy.[3] Since the discovery of diamonds in Botswana in the late 1960s in the
Orapa diamond mine,[8] these precious gemstones have played a very important role in shaping the nation's economics. The industry is mainly managed by the government and De Beers in a company called
Debswana.[5]
Economic impact of diamonds
Diamonds have had a large impact on Botswana's economy.[7] The discovery of diamonds in Botswana during the 1960s triggered a global notable economic transformation,[3] elevating the country from one of the poorest in the world to an economically wealthy country in Africa.[9]
Effects on the economy
Revenue from diamond exports[10] has enabled Botswana to invest in
infrastructure,
education,
healthcare, and
social welfare programs, which has been an extremely significant contributor to the
standard of living for its citizens.[11] Additionally, Botswana has implemented policies to promote local beneficiation,[12] encouraging the cutting and polishing of diamonds within the country to capture more value from the industry.[13] With its rich diamond reserves,[14] its commitment to
sustainability,[15] and partnerships,[16] Botswana has been significant in the diamond industry.[10]
Debswana, established in 1969,[17] is a mining company jointly owned by the Government of Botswana and the De Beers Group.[18] It operates diamond mines in Botswana,[18] contributing significantly to the country's economy through diamond sales.[19] However, Debswana has faced scrutiny over its labor practices,[20] environmental impact,[21] along with concerns about worker safety.[22]
It operates four major diamond mines in Botswana,
Jwaneng,
Orapa,
Letlhakane, and
Damtshaa,[23] Debswana is considered to be crucial in the country's diamond production.[24] However, debates persist regarding the long-term sustainability of diamond mining in Botswana[25] and the distribution of its earnings.[26]
Other commodities
Coal mining
Botswana has substantial coal reserves,[27] primarily located in the eastern region of the country, particularly in the
Mmamabula coalfields.[28] The development of coal mining infrastructure, such as the
Morupule Colliery, has enabled Botswana to harness its
coal resources for both domestic consumption and exportation.[29] However, challenges such as
environmental concerns[30] have made it so that trade and exports are limited and usually with neighboring countries.[31]
Gold mining
The country's
gold reserves are mainly concentrated in the eastern regions, particularly in areas such as the
Tati Greenstone Belt.[32] Exploration efforts by both local and international mining companies have led to the discovery of significant
gold deposits.[33]
Copper mining
Botswana has substantial
copper deposits mainly located in The Kalahari Copper Belt.[34] The Kalahari Copper Belt, in particular, is a prominent geological formation known for its copper-rich ore bodies.[35] However, the commercial viability of copper mining in Botswana depends on factors like
market demand.[36]
Nickel mining
Nickel mining in Botswana represents a burgeoning sector with considerable potential for growth and investment.[37] The discovery of nickel deposits in the northeastern parts of the country, notably in the
Selebi-Phikwe region,[38] has started to bring more economic opportunity in this sector.[39][38] The development of nickel mining infrastructure, such as processing plants and transportation networks,[40] is crucial for Botswana’s nickel industry.[41][42][43]
Other commodities
In addition to coal, gold, copper, and nickel, Botswana has other mineral resources that contribute to its overall mining industry. These primarily include
soda ash,[44]salt,[45] and
granite.[4]
Political influence
San people
In the late 20th century and the early 21st century, the indigenous
San people were forcibly relocated from their home for diamond companies to start exploring in order to find
diamonds.[46] Their lands are located in the world’s richest
diamond field. However, the government denies that there is any relation with mining and claims the relocation is to preserve the wildlife and ecosystem.[47]
^Goodstein, Eban (1983). "The Prospects for Copper and Copper-Nickel Investments in Botswana during the 1980's". Botswana Notes and Records. 15: 75–78.
JSTOR40979682.
^de Castro Pena, João Carlos; Goulart, Fernando; Wilson Fernandes, G.; Hoffmann, Diego; Leite, Felipe S.F.; Britto dos Santos, Natália; Soares-Filho, Britaldo; Sobral-Souza, Thadeu; Humberto Vancine, Maurício; Rodrigues, Marcos (July 2017). "Impacts of mining activities on the potential geographic distribution of eastern Brazil mountaintop endemic species". Perspectives in Ecology and Conservation. 15 (3): 172–178.
doi:
10.1016/j.pecon.2017.07.005.
hdl:11449/170082.