Global diamond company De Beers has announced it is planning to proceed with a $1 billion investment to extend the life of the flagship Jwaneng mine in Botswana, despite last year’s decline in gem demand continuing.

The Anglo-American organisation and Botswana’s government, which own Debswana Diamond Company jointly, have announced the financing will make the Jwaneng pit into an underground operation, Reuters reports.

Back in 2018, Debswana said it was considering an investment to prolong the mine’s lifespan by 11 years from this year.

According to DeBeers, the spending is essential as the long-term supply of rough gems was forecast to weaken.

In 2023, Angola began mining at its Luele project, the largest in the country and one of the biggest in the world, in spite of the declining demand for diamonds.

“The global supply of natural diamonds is falling, so moving forward with the Jwaneng underground project creates new value for investors,” said Al Cook, CEO of De Beers.

Over the past few months, demand for rough diamonds has weakened. So much so that India, which cuts and polishes 90% of the world’s rough diamonds, asked global miners to cease selling it gemstones in order to better manage accumulated stocks, the Reuters report goes on to add.

“This investment is aligned with our strategy to prioritise investments in the highest quality projects,” the De Beers CEO continued.

Back in 2023, De Beers reached an agreement for a new diamond sales pact, which results in the government’s share of diamonds from the Debswana joint venture progressively rise to 50% over the next 10 years.