In a time when diamond prices have dropped, Botswana is looking to expand its economy beyond diamonds. Diamonds have long been a key part of the country's wealth, contributing about a quarter of its gross domestic product (GDP) and 80 percent of its exports. However, with the diamond market facing challenges, the government and private sector are focusing on other mineral resources as a way to diversify the economy. This includes critical minerals that are important for modern technologies, such as electric vehicles and renewable energy systems.
One of the companies leading this shift is NexMetals Mining, a Canadian firm with operations in Botswana. On October 1st, the company announced an increase in mineral resources at its Selebi project, which focuses on copper, nickel, and now also cobalt. The update showed a 72 percent increase in resources compared to the 2024 estimate, including 495,400 tons of copper and 316,800 tons of nickel. NexMetals also previously reported a 70 percent increase in the potential of its Selkirk project, which has similar mineral resources.
Other projects are also contributing to Botswana's growing interest in critical minerals. For example, K.Hill, a manganese project in Botswana managed by the Canadian company Giyani Metals, is part of a larger effort to develop resources that can be used in battery production. In May, Giyani published a final feasibility study for a mine that would require an investment of 535 million USD. The project is expected to produce manganese-based products used in electric vehicle batteries and energy storage systems. Meanwhile, the smaller company Tsodilo Resources is exploring the Gcwihaba area for rare earths and other critical minerals.
While Botswana is making progress, it still has a long way to go to match countries like the Democratic Republic of the Congo or Zambia, which have well-established mining industries. However, Botswana has already begun producing copper again in the early 2020s, with companies like Khoemacau and Motheo. Although the current production levels are not very high, the advances in these projects show a national effort to reduce dependence on diamonds. On a global scale, the demand for critical minerals is growing, with countries like China, the United States, the European Union, and Japan working to secure their supply chains. As this trend continues, Botswana's ability to develop its mineral resources and transform them into viable production will be key to its success in this new market.
Botswana Expands Mining Focus to Critical Minerals Amid Economic Diversification Efforts
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