Botswana is seeking to reduce its dependence on diamonds by bringing forward a new generation of mining projects. A resource update for the Selebi project, led by Canada’s NexMetals Mining, has revived interest in Botswana’s copper and nickel. Published estimates report a 72% increase since 2024, with 495,400 tonnes of copper and 316,800 tonnes of nickel contained in the resources, as well as cobalt in the identified potential.
These figures increase the visibility of a mining sector still largely associated with diamonds. They do not mean a copper-nickel mine is ready to be built: a geological resource still needs study, sampling, economic assessment and conversion into mineable reserves before an investment decision can be made. Botswana’s challenge is now to advance several projects to production while building value chains less vulnerable to diamond cycles.
Diversification has become imperative
Diamonds’ economic importance explains the urgency of this strategy. They account for around a quarter of Botswana’s GDP and nearly 80% of its exports. When demand or prices weaken, the effects feed through to public revenues, foreign exchange and business activity. Diversification therefore does not necessarily aim to replace diamonds quickly, but to broaden the productive base and reduce exposure to a single commodity.
Copper and nickel offer a direction consistent with changing global demand. They are used in electricity networks, electrification, infrastructure and several industrial technologies. At Selebi, the increase in estimated copper and nickel mineral resources expands geological potential, but viability will depend on recoverable tonnage, grades, mining and processing costs and access to water and energy.
NexMetals is also developing Selkirk, where the company announced a 70% increase in defined mineral potential in June, including copper, nickel and cobalt. Multiple metals can diversify a mine’s potential revenues, but also complicate metallurgical process design. Concentrate quality, recovery rates and the ability to sell different products into reliable markets must be established.
Several metals, several horizons
Botswana’s potential extends beyond copper-nickel projects. Giyani Metals is advancing K.Hill, a manganese project whose definitive feasibility study estimated investment of around $535 million. The objective is to produce manganese-based materials intended notably for electric vehicle battery precursors and energy storage systems. The company also received a letter of interest from the Export-Import Bank of the United States for envisaged financing of $225 million. This letter signals interest, rather than final committed financing or a construction decision.
In the country’s northwest, Tsodilo Resources continues exploring Gcwihaba, where potential for rare earths and other critical minerals has been identified. Exploration can open new prospects, but remains at an earlier stage with greater uncertainty than a project supported by a feasibility study. Communications about these assets must therefore clearly distinguish discovery, estimated resources, feasibility and mineable reserves.
Botswana already produces copper through operations such as Khoemacau and Motheo, but volumes remain modest compared with established African producers. Operating assets can provide an advantage: technical skills, suppliers, regulatory procedures and infrastructure can support new projects. This does not remove the need for appropriate investment in roads, energy, water, processing facilities and transport to markets.
Infrastructure and processing will determine returns
International competition for critical minerals improves financing prospects, but also strengthens buyer and public authority requirements. From the United States to the European Union, several partners are seeking to diversify supplies. Botswana can use this to attract capital, as the interest around K.Hill illustrates. Converting interest into investment requires a predictable regulatory environment and evidence that projects can produce within their announced timetables and costs.
National benefits will also depend on how much processing takes place locally. Extraction creates part of the value; processing, mining services, maintenance, local procurement and training can expand it. Processing manganese for batteries or metals contained in copper-nickel ore nevertheless requires reliable energy, financing and customers. Building capacity without sufficiently secure markets could expose projects to high costs and underused facilities.
The state must also balance immediate revenues, employment, environmental impacts and long-term competitiveness. Clear mining development conditions can attract investors while ensuring nearby communities benefit from contracts, training and infrastructure. Successful diversification is measured not simply by the number of metals underground, but by the ability to develop sustainable activities around their production.
Botswana has an expanding portfolio and a strong economic reason to accelerate diversification. The next test will be project maturation: Selebi and Selkirk must confirm feasibility, K.Hill must turn study and financing milestones into execution decisions, and Gcwihaba must clarify the grades of its discoveries. Critical mineral resources can become a complementary pillar to diamonds, but only if investment, infrastructure and markets progress alongside geological announcements.