NGLOY Anglo American PLC (QX)

By Christian Moess Laursen

De Beers will go ahead with a planned $1 billion investment in the Jwaneng underground project in Botswana, the world's most profitable diamond mine, amid tightening diamond supply globally.

The Anglo American majority-owned diamond major said Wednesday that the investment paves the way for the mine to transition from open pit to underground operations, with initial works to begin in May.

"The global supply of natural diamonds is falling, so moving forward with the Jwaneng Underground Project creates new value for investors," Chief Executive Al Cook said.

"This investment is aligned with our strategy to prioritize investments in the highest quality projects," he said.

The Jwaneng mine is operated through the 50-50 joint venture of De Beers and the government of Botswana. It produces an annual average of almost 11 million carats per year.

In July, De Beers--the world's largest diamond miner--signed a ten-year deal with Botswana for the rough diamond production of the joint venture, in which Botswana's take of the diamonds rose to 50% from 25%, along with a 25-year extension to the mining licenses.

Write to Christian Moess Laursen at christian.moess@wsj.com

(END) Dow Jones Newswires

January 10, 2024 08:41 ET (13:41 GMT)

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