Botswana to get more diamonds under new De Beers deal
A new agreement between De Beers Group and Botswana will see a stronger flow of investments into the country, including a larger share of rough channelled to a state-owned diamond supplier.
The two entities have agreed in principle on a new 10-year sales deal for Debswana Diamond Co’s (Debswana) rough diamond production through to 2033 and a 25-year mining license at Debswana until 2054.
The agreement specifically stipulates raising the share of rough diamonds sold via government-run Okavango Diamond Co from 30 per cent at the start of the new contract to 50 per cent by its final year.
De Beers is also investing US$75 million to create the Diamonds for Development Fund "to accelerate Botswana's economic diversification," with further contributions that could total US$750 million over the next 10 years.
Al Cook, CEO of De Beers Group, said the agreement demonstrates the miner’s commitment to continuously invest in Botswana’s diamond sector. He added, “Our transformative agreement reflects the aspirations of the country, secures the future of our Debswana joint venture, and reaffirms De Beers’ leadership position for the long-term.”
Debswana is a 50/50 joint venture between De Beers and the Government of the Republic of Botswana.