Overview
Mining contributes a strategic share to GDP, 7%, dominated by high‑value diamonds from Letšeng, Liqhobong and Kao (Source: BOS 2024). Policy is geared to attract exploration, stabilise production and grow local beneficiation in cutting and polishing. The remainder of the sector activities are in quarrying for dolomite and sandstone.
Sector Structure and Key Facts
- Output: Diamond production >1 million carats annually; Liqhobong reserves ~19 million carats.
- Value: Letšeng yields some of the highest average values per carat globally.
- Employment: Several thousand direct jobs; recent cycles saw 250–300 positions reduced at Letšeng amid market softness.
- Diversification: Licences issued for base/industrial minerals exploration.
Competitive Analysis
Premium value‑per‑carat niche reduces exposure to bulk price swings; transparent licensing and government equity models support stability; adjacency to South African trading/logistics hubs lowers costs.
Institutional and Legal Framework
- Ministry of Mining – mining policy, regulation and monitoring.
- Kimberly Process (KP) – unites administrations, civil societies, and industry in reducing the flow of conflict diamonds.
Incentives and Support Schemes
| Incentive Type | Details |
| Exploration and Mining Licences | Clear cadastre and permitting processes with defined tenure. |
| Government agreements | Negotiable fiscal/regulatory shareholding and royalties for large projects. |
| Capital Equipment Relief | Customs/VAT relief on mining plant/equipment per RSL rules. Accelerated depreciation on mining heavy equipment and machinery. |
Key Investment Opportunities
Cutting/polishing and jewellery; mine services (maintenance, waste/rehab); exploration JVs for base minerals; renewable power for mines.
Other Investor Information:
Infrastructure to sites can be challenging; EandS performance and community relations are critical; security and chain‑of‑custody for diamonds must meet global standards.
Compliance and Participation Strategies:
Obtain mining rights; EIA and community engagement; KP certification and export permits; adopt ICMM‑aligned practices.
Key Takeaways:
- World‑class value‑per‑carat differentiator.
- Beneficiation and services can deepen local value.
- Strong governance and logistics planning are essential.
Checklist for Foreign Investors
- Secure rights and stability terms
- Plan EandS and community agreements
- Set KP/export protocols
- Assess power/logistics