The Government of Botswana has signed a new ten-year diamond sales agreement with Anglo American’s subsidiary De Beers for Debswana's rough diamond production, with a potential five-year extension upon meeting specific criteria.
Under the new sales agreement, Botswana's state-owned Okavango Diamond Company (ODC) will sell 30% of Debswana's production, while De Beers will sell 70% for five years.
In the following five years, ODC’s share will increase to 40%, while De Beers' share will be 60%. If extended for another five years, both parties will sell 50% each.
Both entities have committed to supplying diamonds for local beneficiation in proportion to their Debswana supply.
A 25-year extension of mining licences from August 2029 until July 2054 was also signed. The licences were originally set to expire in 2029.
The extension will enable Debswana to deliver long-term value from existing mining assets and extension projects such as Jwaneng Cut-9, Jwaneng Underground and Orapa Cut-3.
Earlier this month, the Government of Botswana and De Beers concluded discussions related to the agreements.
The two parties also agreed on a transformative package of commitments to support Botswana's economic development and the advancement of the diamond industry.
This includes the establishment of the Diamonds for Development Fund, with De Beers pledging an upfront investment of P1bn and additional annual contributions based on Debswana's performance.
Further initiatives include De Beers' investment in a diamond jewellery manufacturing facility, the creation of a De Beers Institute of Diamonds grading laboratory and the launch of a diamond vocational training institute in collaboration with industry partners.
Moreover, the Government of Botswana and De Beers have committed to co-invest in marketing initiatives to bolster diamond demand.
The investments will support marketing programmes designed to stimulate rough diamond sales, uphold the ethical integrity of diamonds and maintain consumer confidence.
The co-investment will occur over the life of the sales agreement and align with their respective shares of Debswana supply.
