Diamond mining giant De Beers Group has completed negotiations with the Government of Botswana to establish a new ten-year sales agreement for Debswana’s rough diamond production until 2033.
The agreement also includes a 25-year extension of Debswana’s mining licences to 2054.
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The new mining licences are pending issuance by Botswana’s regulatory authorities and final governance approvals. Until then, the terms of the existing agreements will remain in effect.
Debswana, a joint venture (JV) equally owned by the Government of Botswana and De Beers, is responsible for operating major diamond mines in Botswana, including Jwaneng, Orapa, Letlhakane and Damtshaa.
Minister of Minerals and Energy for the Government Hon. Lefoko Maxwell Moagi said: “We are extremely pleased to have agreed the Heads of Terms with our partners at De Beers. This is an important step forward as we progress towards finalisation of the contracts and implementation of the transformational new agreements.
“The new chapter we are embarking on will see more skills development and job creation for Batswana, and more diamond beneficiation locally.”
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By GlobalDataThe negotiations, which began in 2018, culminated in a ten-year sales agreement in September 2023.
The deal outlined terms for the government’s share of diamonds from the Debswana JV to gradually rise to 50% within the next decade.
However, the deal was not finalised under former Botswana President Mokgweetsi Masisi.
On 23 January, Botswana’s new president, Duma Boko, expressed his intention to expedite the finalisation of the agreement, which aligns with the Heads of Terms set in 2023.
De Beers Group CEO Al Cook said: “We are very pleased to have signed the Heads of Terms for an agreement that will deliver large new investments, supporting the country’s development aspirations.
“The agreement also underpins De Beers’ long-term leadership in the diamond industry, securing our equal share in the world’s greatest diamond resources for decades to come.”
