Diamond Mining Essay Example | Topics and Well Written Essays - 2000 words

Diamond Mining - Essay Example Botswana gained it's independence in 1966. It previously had been the British protectorate of Bechuanaland. It has moved to being one of the richest and most stable African countries on the continent. It is often called the Switzerland of Africa (afdiamonds, 2009). This economy is fueled by diamond mining. Botswana came from being one of the poorest countries in Africa to this. There are still hopes for this country and there are many issues to solve for their poor but they have accomplished much. Botswana is classified as an upper middle class country and the World Bank classifies it as the most affluent country in Africa. The World Bank, (2002) states that it has the fastest growing economy in the world. This growth rate has had to do with their diamond industry and how it has been managed. It must also be noted here that Botswana has been one of the favorites for aide donation over this time of growth. The physical and social infrastructures of this country are highly developed because of the government's ability to increase the ability of its country to use the national resources of diamonds and also manage with aide from other countries as it developed these resources (Wikan, 2004). Diamonds were discovered in Botswana in 1967 after a full search that lasted 12 years. They presently run 4 large diamond mines. Juaning is in Southern Kalahari, Damsha and Lethlahana in the central Kalahari are the largest. These mines exports maintain 80% of export earnings for the country and 45% of their GOP. These mines are jointly owned by DeBeers and Botswana. The government of Botswana has a history of managing this resource well. From early on, mineral rights were vested in the State. The government then would use this on the discovering of good deposits to assure that they had equity interest in the site. They then collected royalties from the other minerals involved such as gold. They designed the 1999 Mines and Minerals Act to allow for foreign investment to occur. This also diversified interests so that the diamond mining was not the only interest of the company to support their economy. The government has kept their ability to apply interests to new discoveries. The political atmosphere and leadership in Botswana has been one of formulating economic reason for the country. When DeBeers became greatly involved in these countries mining processes and the amount of diamonds produced, the government of Botswana remained in the negotiations of all processes and procedures. Politically there were astute throughout the process with excellent leadership and little political conflict. It has to be noted, also, that major mines were situated in area where prior to that there was little or no work available These diamonds lie under Botswana in the Rocks of Kaapaal. There are more kimberlites here than any other place in the world. There are rich deposits of gold, platinum, based metals and minerals in those same places. They have produced more diamonds since 1867 than any other part of the world. The Orapa mine alone is expected to produce at the present rate of production for at least the next 40 years. The expectation is that there will be an operating margin of $130 per ton using the pit mining technique that they presently use. The climate conditions and the available electric power there improve the situation that much more. The country