Diamond producers De Beers and African Diamonds might build a one-million-ton-a-year diamond mine in Botswana, the companies’ joint venture firm, Boteti Exploration, said on Monday.

Boteti, in which De Beers hold a 66,2% stake, African Diamonds a 28,8% shareholding, and Wati Ventures a 5,4% stake, said that it could start operations in the last quarter of 2009, should Botswana’s Minerals, Energy and Water Resources Ministry grant the firm a mining licence.

This would be African Diamonds’ first diamond mine in Botswana.

Boteti has submitted its application to mine the AK06 deposit, which De Beers Prospecting Botswana discovered, on September 28.

The mine would be an openpit operation, and the current life-of-mine was estimated at ten years.

Once operational, the mine would employ about 240 permanent employees for phase one of the operation increasing to some 320 permanent employees during phase two of the operation. During the construction phase, which precedes mining, employment levels were predicted to peak at about 1500 people.

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