Local mining industry eyes downstream integration

Lewanika Timothy | Tuesday June 18, 2024 11:37

This was revealed by representatives of various companies who gathered for the recently ended Future of Mining Summit. Going forward, many mining companies are now setting their eyes on international shores to expand their nets and get more customers on the international scene to widen their revenue streams. One such company is state-owned diamond trader, Okavango Diamond trading Company (ODC), which revealed plans to use technology as an accelerator to beef up its value proposition in order to be appealing to the international market. ODC’s CEO, Mmetla Masire, told the Summit that they were currently expanding their reach to international players. He added that the company was looking beyond its allotment from the De Beers and the Botswana mineral agreement in order to attract interest from international markets for their rough diamonds.

“We are expanding our facilities to cater for more customers,” he said. “And when our facilities are done, we are going to capture a broader market audience.” The company sells rough diamonds through 10 schedule sales a year and the sales are open to participation from all local and international buyers who have successfully completed ODC's registration process. For her part, Lucara Diamond Botswana CEO, Naseem Lari, said the diamond miner currently has all its eggs in one basket and is looking at downstream activities in order to expand its business case.

She added Lucara was diversifying its sales channels to reach a broader audience. “All our eggs are currently in one basket and we are diversifying our sales channels in order to reach more people in the diamond industry. We need to get our diamonds seen in the international scene and increase our presence there,” Lari said. Botswana’s economy is a mining haven, mainly due to the country’s ample mineral deposit endowments particularly diamonds which have anchored the economy for many years.