De Beers' Botswana joint venture ends $1.3B mine contract with Thiess – Reuters

Debswana Diamond Co. (Pty.) Ltd. terminated a $1.3 billion contract with Thiess Pty. Ltd. unit Majwe Mining Joint Venture (Pty.) Ltd. to extend the life of the Jwaneng diamond mine, Reuters reported Jan. 12.

Debswana Diamond is a joint venture between Anglo American PLC unit De Beers SA and the Botswanan government.

Debswana Diamond decided to execute the Cut 9 project at the site on its own and did not provide a reason for the termination. Reuters noted that the company has been affected by low diamond demand due to the coronavirus pandemic.

"The Cut 9 operation will transition to an owner-mining operation, with some of the key services and resources, such as labor, being provided by contractors/service providers to Jwaneng mine," Rachel Mothibatsela, Debswana's head of corporate affairs, said in a statement to Reuters.

The joint venture awarded the contract to Majwe in 2019. The Cut 9 development project is expected to last nine years and extend the life of Jwaneng to 2035 while yielding an estimated 53 million carats of rough diamonds, the report said.

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