Key Points
- Botswana Diamonds expands exploration in Botswana and South Africa
- AI programme identifies new kimberlite and critical mineral targets
- Company diversifies into copper and other key minerals
Botswana Diamonds reported steady progress in its exploration and development work, despite another difficult year for the global diamond market.
The Aim-listed developer reviewed its performance for the financial year that ended June 30 and the first half of its 2026 financial year.
The company noted that it strengthened its asset base across both diamond and critical mineral prospects.
The group highlighted continued work at Thorny River and Marsfontein in South Africa and at the KX36, Sekaka and Maibwe projects in Botswana.
Chairperson John Teeling told investors, “We enter the next phase of our development with renewed confidence, a broader portfolio and a roadmap for value creation.”
Industry faces weak demand in major markets
Teeling explained that global diamond demand remained soft. He noted that consumer spending in China stayed weak and jewellery sales in the United States dropped because of inflation and economic caution. India’s diamond polishing activity slowed as inventories remained high and US demand declined.
Several large producers responded with temporary production cuts and sales pauses. Those moves reduced excess stock and stabilised prices for natural diamonds.
Teeling added that rising supplies of lab-grown diamonds continued to pressure prices in the lower and mid-value segments. The impact was stronger in high-volume product ranges.
He said the company’s focus on high-value natural diamonds gives it some protection because consumer preference remains stable in that segment.
Manufacturing activity has improved in recent months as inventories normalised, although overall demand remains uneven. Teeling expressed confidence in long-term supply fundamentals, noting that many small and alluvial operations around the world are no longer economic.
He said major producers are reaching peak output at existing mines, with very few new kimberlite mines under development.
AI-driven exploration opens new targets
Botswana Diamonds moved forward with a major exploration initiative through a collaboration with Planetary AI. The project used advanced semantic AI to analyse decades of geophysical data, soil samples and drill records across Botswana.
The work identified seven new kimberlite targets and 11 high-quality critical mineral targets that include copper, nickel, zinc, silver, gold and platinum group metals.
The AI programme integrated more than 375 000 km of airborne geophysics, 228 000 soil samples and 32 000 drill logs. Teeling called the effort one of the most advanced uses of artificial intelligence in Botswana’s mineral exploration history.
He said, “The initiative has opened new frontiers, accelerated our targeting pipeline and derisked the early stages of exploration.”
Company expands into critical minerals
For the first time in two decades, the company moved beyond diamonds. After reviewing the AI results, Botswana Diamonds applied for eight prospecting licences covering 6 550 square kilometres across Botswana. The applications target copper, nickel, PGM, lead, zinc, silver and gold.
Teeling said the decision followed the identification of multiple mineralised corridors that share traits with known prospects in neighbouring regions.
He explained that Botswana remains underexplored for many commodities and offers a low-cost entry point for new discoveries.
“We are hopeful of obtaining these licences, after which fieldwork will begin immediately. We have initiated discussions with potential partners who recognise the strategic importance of the portfolio.”
He added that the shift reflects a natural extension of the company’s experience rather than a departure from its core business. “This evolution arises not from abandoning our roots, but from leveraging them,” he noted.
He stressed that the diversification effort is driven by data, analysis and the use of AI to unlock the value of more than 20 years of accumulated geoscientific information.
Teeling said the approach aligns with Botswana’s policy of growing the diamond sector while supporting exploration for new minerals that could help drive long-term economic growth.
