Minister Bogolo Kenewendo unpacks the state of the mining industry and her life

Good morning, let’s get into it!

In a candid sit-down on the Punchline Podcast, Botswana’s Minister of Minerals and Energy, Bogolo Joy Kenewendo, laid out a bold roadmap for the country’s economic sovereignty.

Moving beyond the traditional narrative of diamonds, Kenewendo detailed a strategy focused on aggressive diversification into copper, a massive overhaul of the energy infrastructure, and a re-engineered relationship with De Beers.

The New Era of Diamonds: Value Over Volume

While the diamond market faced a collapse in 2022, Kenewendo notes that the "bubble" around synthetic diamonds has burst, with consumers returning to natural stones. However, the government’s strategy has shifted from passive collection to active industry participation.

• The De Beers Deal: The Minister debunked rumors of tax waivers, clarifying that the new agreement is strictly about value capture. The Okavango Diamond Company (ODC) will see its allocation rise from 25% to 30% immediately, scaling to 50% within a decade.

• No Non-Compete: Crucially, the non-compete clause has been scrapped. This allows ODC to enter contracts with other partners, providing Botswana with greater visibility and stability in sales.

• The Angola Question: Addressing speculation about Angola buying a stake in De Beers, Kenewendo insisted there is no competition. "We are aligned," she stated, emphasizing that as a major shareholder and contributor to De Beers' bottom line, no deal moves forward without Botswana’s approval.

Copper is King: The Industrialization Play

Perhaps the most significant pivot is the elevation of copper to the top of the mineral hierarchy. With the global green energy transition hungry for red metal, Botswana is positioning itself not just as an extractor, but as a processor.

• The Volume Game: Expansions at the Khoemacau and Motheo mines are set to double output by 2027.

• The End Goal: Kenewendo was clear: "The name of the game is volume." The state is pushing for production levels high enough to justify the construction of a local smelter. This would move Botswana down the value chain, enabling local beneficiation rather than exporting raw concentrate.

• Beyond Copper: While gold remains a minor player, the country is actively exploring manganese (with a pilot already underway for EV batteries) and uranium.

Energy Security: The $174 Billion Backing

Facing recent power crises, the Ministry has adopted a "50/50" energy mix target and is moving fast to secure financing for infrastructure that is both robust and climate-resilient.

• Strategic Partners: The Minister revealed a new consortium partnership involving entities from Qatar and Singapore (Mercuria). This group brings a verified capital capability of $174 billion to deploy into Botswana’s infrastructure projects.

• Democratizing Power: The government is aggressively promoting rooftop solar, incentivizing households to sell excess power back to the grid. Financing facilities through local banks (Absa, Stanbic) are being utilized to make this accessible.

• Climate Resilience: Acknowledging the infrastructure damage caused by recent floods, Kenewendo emphasized that future energy and road projects must be built with "adaptive capacity" to withstand Southern Africa’s changing climate.

The Bottom Line

Minister Kenewendo’s message was one of "curated futures." By leveraging the recovery in diamonds to fund a transition into energy and industrial copper mining, Botswana is attempting to break the resource curse and move from a mining economy to a diversified luxury and energy hub.

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