Botswana Shifts Mining Strategy as Diamond Market Slumps, Eyes Critical Minerals

Botswana, long reliant on diamond exports for about a third of government revenue and three-quarters of foreign exchange, is stepping up efforts to diversify its mineral sector, Mines Minister Bogolo Joy Kenewendo told Reuters at the Investing in African Mining Indaba conference.

Only about 30 percent of Botswana’s territory has been geologically surveyed, Kenewendo said, leaving nearly 70 percent unexplored. The government plans to expand exploration into critical minerals such as copper, cobalt and other resources tied to clean energy and advanced manufacturing, she added.

The move comes amid a prolonged slump in the diamond market, partly driven by softer global demand and the rising popularity of lab-grown alternatives, prompting calls within Botswana to reduce dependency on a single commodity.

Kenewendo said a new state-owned exploration company will focus on building better geological data to attract investors and support the search for high-value minerals beyond diamonds.

While diamonds remain central to the economy, the push into critical minerals reflects broader global trends. Demand for metals like copper and cobalt has surged as countries seek materials needed for energy transition technologies, including electric vehicles and renewable power infrastructure.

Officials also noted early interest from the United States in partnering on exploration and mining projects, particularly in strategic mineral areas, though discussions are at an early stage.