Amid the current challenges facing the global diamond market and the growing appetite to explore the potential of critical minerals, such as copper and cobalt, Canadian mining company Premium Resources CEO Morgan Lekstrom says that greater emphasis should be placed on showcasing the economic scalability of mining projects in Botswana.

With the country’s mining sector being dominated by diamond mining, Lekstrom highlights that the fluctuation of diamond prices in Botswana has led to a reduction in economic growth, noting that the country is actively diversifying its economy to reduce its dependence on diamond mining.

The mining sector has a “great opportunity” to capitalise on the considerable untapped potential for further discoveries and development in the Kalahari Copper Belt, in northern Botswana, which is a high-potential mining region for copper and silver resources.

These factors considered, there is an opportunity for Premium Resources to explore the large mineral reserves and infrastructure that were previously owned and operated by the now defunct State-owned miner BCL Limited, adds Lekstrom.

“At Premium Resources, we aim to make a significant impact on Botswana’s gross domestic product, and a big part of our strategic considerations involves thinking about how we create a path back to production, creating jobs and fostering a sustainable future within the local communities where we operate,” he explains.

Redevelopment Strategy

The long-term success and sustainability of mining ventures in Botswana depend on mining’s ability to demonstrate economic scalability, says Lekstrom.

Despite having the necessary infrastructure in place to redevelop mines, creating and developing equity strategies is key to initiating sustainable mining projects.

As mining projects are developed, he adds that it is important to carefully plan debt incurrence, capital expenditure and the speed of project development, as a project rolled out too quickly can suffer from exorbitant capital costs and over-expenditure, which may dissuade investors.

In this regard, Premium Resources’ goal is to raise enough capital to support a full year of redevelopment activity at the company’s Selebi mine in Selebi-Phikwe, and at the Selkirk mine, located south-east of Francistown.

Lekstrom notes that, in March 2025, a consortium of institutional investors demonstrated strong confidence in the future of Premium’s Botswana assets by participating in a $46-million financing, which also facilitated the settlement of outstanding debt.

Premium Resources also outlined a six-month plan to advance its two permitted, previously producing copper, nickel and cobalt mines in Botswana, on April 10.

The company aims to execute a carefully designed exploration drilling programme at the Selebi mine while finalising metallurgical work to identify the optimal mineral processing method for future production.

Premium will also advance work on the Selkirk mine through low-cost initiatives and continue evaluating strategic opportunities to enhance its value, he says.

“We want to show the world, and the people of Botswana, the sheer scale and size of mineral deposits . . . and there is an unprecedented opportunity to create generational assets.

“We also have to ensure that we continue to implement work programmes that will support future comprehensive economic assessments,” Lekstrom highlights.

The company has developed strong government and community relations and benefits from favourable permitting processes in the country.

“We are excited for what we think the future of Premium Resources will bring to Botswana, its people and to the investment community. We are also looking forward to showing the investment community that Botswana is not solely a diamond producer,” Lekstrom concludes.