• Tsodilo Resources plans a new rare earth drilling program at Gcwihaba in 2026.
• Botswana seeks to reduce reliance on diamonds, which generate about one-third of public revenue.
• Global rare earth demand could rise to 150,000 tonnes by 2040, the IEA says.

Tsodilo Resources, a mining company listed on the Toronto Stock Exchange, said on January 13, that it plans to launch a new drilling program in 2026 at its Gcwihaba rare earth project in Botswana. The company aims to deliver an initial mineral resource estimate. The announcement came as Botswana, a historically diamond-dependent economy, advances its mining diversification agenda.

Diamonds generate nearly one-third of public revenues in the southern African country. This heavy reliance has weighed on economic activity amid a downturn in diamond markets. In response, Gaborone has sought to adapt its growth model by promoting non-diamond mining. This segment already includes operating copper and coal mines, alongside emerging projects in nickel at Selebi and Selkirk and uranium at Letlhakane.

The Gcwihaba project could align with this strategy if Tsodilo confirms a first resource estimate, which would mark the identification of initial deposits. Tsodilo said it plans up to 15,000 meters of drilling at the site but did not disclose the level of investment required to execute the exploration program. The company said it aims to position itself in the rare earth market, which governments increasingly classify as strategic for critical mineral supply chains.

Rare earth elements play a key role in manufacturing permanent magnets used in electric vehicles and wind turbines. These metals have drawn growing attention as China, which dominates the rare earth value chain, has used its position as a trade lever in relations with the United States. At the same time, global demand could rise sharply to 150,000 tonnes by 2040 from 91,000 tonnes in 2024, according to the International Energy Agency.

Tsodilo said its ambitions extend beyond rare earths. The company said previous exploration work also identified other strategic minerals, including copper, cobalt, nickel, vanadium, and silver. However, Tsodilo still needs to confirm whether these indications at Gcwihaba translate into economically viable mineral potential.

Such a development would strengthen Tsodilo’s growth plans while providing Botswana with an additional lever to diversify its mining sector. Meanwhile, Botswana also hosts Ditau, another rare earth exploration project operated by Kavango Resources.

This article was initially published in French by Aurel Sedjro Houenou

Adapted in English by Ange Jason Quenum