Diamond giant De Beers will go ahead with a £790million investment in Botswana despite a downturn in demand.
The Jwaneng mine, the richest in the world, will be converted into an underground operation to extend its life.
De Beers, a unit of Anglo American, said the investment is crucial due to the declining supply of natural diamonds.
Industry demand has fallen due to the accelerating popularity of lab-grown gems. Man-made diamonds are cheaper and thought to be more ethical and sustainable.
De Beers made an estimated £2.9billion last year, down more than third compared to 2022.
Sparkling: Chinese model Sui He in a De Beers Christmas ad campaign. The diamond giant has been hit with falling demand due to the accelerating popularity of lab-grown gems
The Mail on Sunday reported last month that there are growing fears of a ‘jobs bloodbath’ at De Beers under plans to cut costs. In December, Anglo said it needed to slash spending.
De Beers boss Al Cook said: ‘The global supply of natural diamonds is falling, so moving forward with Jwaneng creates new value for investors.’
The mine is owned by Debswana, a joint venture between De Beers and the Botswana state.
It produces around 12.7m carats each year.
The joint venture said back in 2018 that it planned an investment to extend the mine’s life by 11 years from 2024.
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