South Africa: Botswana Diamonds obtains a key permit for its Thorny River diamond project

Botswana Diamonds, a company specialising in the exploration and development of diamond projects, has taken a decisive step forward by obtaining a mining permit for its Thorny River project in South Africa. This breakthrough, coupled with a slight upturn in diamond prices, has raised hopes of imminent mining in a region with promising geological potential.

The recently granted licence covers an area adjacent to the renowned Marsfontein diamond mine in Limpopo province. The Thorny River project is based on the discovery of two commercially viable kimberlite deposits, identified following extensive geophysical analysis, drilling and bulk sampling. This work revealed a geology and diamond grades consistent with those of the neighbouring Klipspringer mine, strengthening the site's economic prospects.

Botswana Diamonds had submitted two applications for mining permits following these discoveries. While only one licence has been obtained to date, the company has also secured an environmental permit in December 2024 for one of its applications, paving the way for future mining. "We have finally received the mining permit," said John Teeling, Chairman of the company, in a statement. "With a slight improvement in diamond prices, we could soon start operations at Thorny River if this trend continues."

Despite its name, Botswana Diamonds concentrates a significant part of its efforts in South Africa, while remaining active in Botswana. At Thorny River, the company is banking on a system of kimberlite dykes rich in potential. In addition, it has subcontracted the exploitation of the gravel and landfill sites at Marsfontein to a partner, receiving a 15% royalty on the revenues generated. This operation, conceived as a proof of concept, was however suspended in October 2023 due to a fall in diamond prices and delays in granting permits.

Today, the company says it is ready to resume operations at Marsfontein and start up operations at Thorny River as soon as market conditions allow. "We are closely monitoring the price recovery," added John Teeling, emphasising the importance of market conditions for project profitability.

At the same time, Botswana Diamonds is strengthening its footprint in the Marsfontein region. In October 2024, the company obtained a prospecting licence covering 900.67 hectares, including five diamondiferous kimberlites, including the Marsfontein mine itself. This expansion reflects the company's strategy of diversifying its portfolio while capitalising on high-potential areas.

The Thorny River and Marsfontein kimberlites are located in a favourable geological context, but their exploitation will largely depend on the dynamics of the global diamond market, which is still fragile after years of volatility. However, obtaining the necessary permits is a positive signal for investors and stakeholders.

If the slight rise in diamond prices continues, Botswana Diamonds could quickly move from exploration to production, generating significant revenues in a historically resource-rich region. However, administrative delays and market fluctuations are a reminder of the challenges inherent in the mining sector.

For the time being, the company remains cautiously optimistic. With a permit in hand and environmental clearance secured, Thorny River is positioned as a key project for the future of Botswana Diamonds. It remains to be seen whether the market will provide the conditions needed to turn this geological promise into an economic success.