De Beers and the government of Botswana have concluded negotiations focused on establishing a new sales agreement for Debswana’s rough diamond production, as well as extending the company’s mining licences beyond 2029.
This development is in alignment with the heads of terms agreed on September 30, 2023.
Botswana’s previous administration negotiated for an increase in the share of Debswana's supply sold via Okavango Diamond Company (ODC) to 50% by 2033.
At the start of the new contract period, ODC was set to receive 30% of Debswana's production instead of the current 25%.
Gaborone also pushed to secure P10 billion ($ 720 million) in development funding.
The partners said in a joint statement that following the issuance of new mining licences by the appropriate regulatory authorities in Botswana and final governance approvals, both parties would then sign and execute the relevant agreements.
“Until the execution of these new agreements, the terms of the existing agreements will continue to remain in effect,” reads the statement.
De Beers and the government of Botswana said they reaffirm their commitment to their enduring partnership, which has lasted over 50 years.
“This collaboration is aimed at the responsible recovery, marketing, and sale of diamonds, ensuring the sustainability of the global diamond industry while enhancing the significant fiscal and societal contributions that diamonds provide to Botswana,” they said.
Debswana, is 50:50 joint venture between De Beers and the government of Botswana, operates several leading diamond mines in Botswana: Jwaneng, Orapa, Letlhakane, and Damtshaa.
Mathew Nyaungwa, Editor in Chief, from Cape Town, South Africa, Rough&Polished
