The government of Botswana and De Beers are expected to reach a deal today on the new agreement for the sale of Debswana’s rough diamond production.
“I am sure you all know that Friday is D-day,” Botswana’s Minister of Minerals and Energy Lefoko Moagi told journalists at a press conference on Thursday.
“Having said that we are making headway [...], and we are busy on those terms. We are working around the clock just to make sure we can conclude the deal or no deal, whatever will come on Friday.”
He said that the diamond deal was important to both parties and the industry at large.
“I must assure you that we are very optimistic that [...] we will gravitate towards something that will be a shared win or a win-win for all of us,” said Moagi.
Initially, the 10-year diamond sales agreement was due to expire at the end of 2020 but was extended to the end of 2021, then to the end of 2022, and to June 30, 2023.
The extensions gave De Beers and Gaborone time to complete discussions regarding the contract renewal.
De Beers brought the Diamond Trading Company (DTC) to Botswana under the current deal, which also paved the way for the country to receive 15% of the total Debswana output for sale by the state-owned Okavango Diamond Company.
Botswana’s President Mokgweetsi Masisi was quoted earlier this year as saying that his government wants a larger share of local output and that it is prepared to leave the talks if its demands are not met.
However, independent diamond industry analyst Paul Zimnisky told Rough&Polished last month that Masisi’s threats were mere posturing as the relationship between Botswana and De Beers is “too big to fail”.
“I do think there is some posturing going on regarding some of the sound bites,” he said then.
Apart from the 10-year marketing agreement, the negotiations are also focussed on a 25-year mine licence deal.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
