The coronavirus pandemic, which is currently ravaging the world, is expected to delay the conclusion of a new sales deal between the Botswana government and De Beers.
Reuters quoted the country’s minerals permanent secretary, Mmetla Masire as saying that there was no guarantee that they will renew a new 10-year sales agreement with De Beers before the end of December.
The current sales agreement will expire end of the year.
“The ideal situation would be to end the talks by December but there are no guarantees that will happen,” he said.
Masire said although Gaborone had resumed talks with De Beers, travel restrictions had slowed progress.
A delay was expected to put a dent on President Mokgweetsi Masisi’s plans to boost a young diamond polishing and cutting industry, according to Reuters.
Although the government of Botswana has refused to review its latest demands from the negotiations for a new sales deal with De Beers, it has indicated its desire to fully participate in research and development led by the diamond group.
Botswana’s minister of mineral resources Lefoko Maxwell Moagi told Rough & Polished last February that Gaborone wants DebTech and related firms owned by De Beers to have a presence in the country for Botswana to get the skills and benefit.
DebTech, which is based in Johannesburg, South Africa is a division of De Beers and it was established in the 1950’s to acquire, adapt or develop innovative technologies and services that have a significant impact on the efficiency and productivity of the group’s mining operations.
De Beers brought the Diamond Trading Company (DTC) to Botswana under the current deal, which also saw paved way for the country to receive 15% of the total Debswana output for sale by the state-owned Okavango Diamond Company.
Moagi said in February that Botswana wants to capacitate its people to be able to price, cut and polish their diamonds better.
Debswana, a 50/50 partnership between De Beers and the Botswana government provides the country with about two-thirds of its foreign exchange.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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