Botswana and De Beers have signed a new diamond sales deal, giving the neighboring country a larger share of rough stones from their joint venture, according to the Botswana government and the mining company.
The Botswana government and De Beers have agreed on a new 10-year sales deal for Debswana’s rough diamond production, extending until 2033. Additionally, new 25-year Debswana mining licenses have been granted, lasting until 2054.
Debswana, a joint venture between De Beers (an Anglo American unit) and the Botswana government, currently sells 75% of its output to De Beers, while the remaining balance is taken up by the state-owned Okavango Diamond Co.
The parties stated in a joint statement that an interim agreement will preserve the terms of the most recent sales agreement, which expired on June 30, while the formal sales and mining agreements are being finalized.
“While the partners finalise the implementation of the formal sales and mining agreements, an interim agreement will preserve the terms of the most recent sales agreement which expired on 30 June,” the parties said in a joint statement.
Leading up to the deal, Botswana President Mokgweetsi Masisi had advocated for a larger share of Debswana’s output.
In a move aimed at reducing De Beers’ dominance over Botswana’s gems, Botswana announced in March that it would acquire a 24% stake in Belgian gem processing firm HB Antwerp.
As part of this arrangement, Botswana’s state-owned diamond trading company, Okavango Diamond Company (ODC), would also enter into a five-year agreement to supply rough diamonds to HB Antwerp.
Debswana achieved a record diamond sales figure of US$4.588 billion last year, compared to US$3.466 billion in 2021.
Diamond sales, primarily from Debswana, contribute to two-thirds of Botswana’s foreign currency receipts and one-fifth of its gross domestic product.
Botswana currently supplies 70% of De Beers’ rough diamonds.
