Although it had been a difficult year for the diamond industry in the 12 months ended June 30 and beyond, Aim-listed diamonds developer Botswana Diamonds says it made significant progress on its strategic expansion efforts.

Reflecting on its performance for the financial year ended June 30 and the first six months of its 2026 financial year, the company says it has strengthened its asset base for both diamond and critical minerals exploration, as well as adopted advanced technologies as it continues exploration and development on the Thorny River and Marsfontein projects, in South Africa, and the the KX36, Sekaka and Maibwe projects, in Botswana.

“We enter the next phase of our development with renewed confidence, a broader portfolio and a roadmap for value creation,” says chairperson John Teeling.

Globally, the diamond industry experienced muted consumer spending and persistent uncertainty in several major markets this year.

Teeling explains that demand for diamonds in China remained soft while there were lower jewellery sales in the US – the largest consumer market for diamond jewellery – owing to inflationary pressures and broader economic caution.

Indian diamond polishing activity slowed in the year owing to elevated inventories and the softer US demand while several major producers introduced temporary production cuts and sales pauses, which helped to reduce surplus stock and stabilise prices.

The situation was exacerbated by growing supplies of lab-grown diamonds, which Teeling says compresses prices in the lower-to-mid-value segments of the natural diamond market.

However, the negative effects of lab-grown diamonds were most pronounced in categories where volume outweighs rarity. To this end, Botswana Diamonds’ exploration portfolio is aimed at high-value diamonds, where natural diamonds retain strong consumer preference and pricing resilience.

Teeling confirms that manufacturing activity of diamonds has since picked up as inventory levels normalised; however, global diamond demand remains uneven.

He expresses confidence that the longer-term supply fundamentals for diamonds remain favourable.

Additionally, many alluvial and small-scale diamond mining operations globally are uneconomic, which reduces natural supply. Teeling says major producers of diamonds are approaching peak output from existing mines, with few new large-scale kimberlite mines being developed.

These dynamics underpin the company’s strategy of focusing on value over volume and investing in geologically robust, high-potential assets in stable mining jurisdictions.

NEW METHODS

Teeling points out that a defining initiative this year year had been Botswana Diamonds’ strategic collaboration with Planetary AI, which uses advanced semantic AI to evaluate vast, disparate mining-related data collected over decades.

This technology helps to identify previously overlooked mineralisation potential across Botswana.

The results of the work done with Planetary AI include the identification of seven entirely new kimberlite targets in areas that had not previously been considered prospective; the identification of 11 high-quality critical metal targets, including copper, nickel, zinc, silver, gold and platinum group metals (PGM); and the integration of more than 375 000 km of airborne geophysics surveys, 228 000 soil samples and 32 000 drill logs.

The exercise had been one of the most advanced applications of AI in mineral exploration undertaken in Botswana, and positions Botswana Diamonds among the industry’s early adopters of data-driven exploration at scale.

“The initiative has opened new frontiers, accelerated our targeting pipeline and derisked the early stages of exploration,” Teeling affirms.

DIVERSIFYING FROM DIAMONDS

Following the AI exploration programme, Botswana Diamonds diversified for the first time in 20 years into critical minerals, particularly copper.

The company submitted eight prospecting licence applications across Botswana for a total area covering 6 550 km2, targeting copper, nickel, PGM, lead, zinc, silver and gold.

These applications were prompted by the identification of multiple mineralised corridors, several of which show geological similarities to known prospective areas in neighbouring countries. Botswana has seen limited exploration for many of these commodities, offering first-mover advantage and a low-cost entry point for value creation, Teeling states.

“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.

“This evolution arises not from abandoning our roots, but from leveraging them. Botswana remains underexplored for many commodities, despite its exceptional mining code, political stability and extensive geological database,” Teeling states.

He adds that Botswana Diamonds’ longstanding presence, coupled with deep operational expertise and proprietary knowledge, positions the company to capitalise on these emerging opportunities.

The diversification effort is not speculative; rather, it is built on robust data, rigorous analysis and the integration of AI, which has allowed Botswana Diamonds to extract new value from more than 20 years of accumulated geoscientific data, Teeling explains.

“We also believe that we are aligned with government policy in terms of both continuing diamond exploration while diversifying into alternative potential mineral resources for the benefit of Botswana’s future economic prosperity.