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  • Al Cook, CEO of De Beers (left) and Lefoko Moagi, Botswana’s mining minister, at the signing event.

De Beers And Botswana Strick New Deal


De Beers and Botswana have reached a new agreement in principle on a new 10-year Sales Agreement for Debswana’s rough diamond production through to 2033 and a 25-year extension of the Debswana mining licences through to 2054.


State-owned trading business Okavango Diamond Company (ODC) will initially receive 30 percent of production from Debswana, a joint venture between De Beers and the government of Botswana. This will significantly expand Botswana’s footprint and leadership position across the diamond value chain, including a transition to increasing the share of Debswana supply sold via ODC to 50 percent over the duration of the agreement. 


“From the start of the new contract period, ODC will receive 30 per cent of Debswana production, progressively increasing to 50 percent by the final year of the contract, ensuring a sustainable transition path for both partners,” said De Beers.


In order to accelerate Botswana’s economic diversification, the new deal also includes the creation of a multi-billion Pula Diamonds for Development Fund, with an upfront investment by De Beers of BWP 1 billion (around $75 million) and further contributions over the next 10 years that could total up to BWP 10 billion (around $750 million) – which will aim to create substantial additional value to the Botswana economy.


The new deal will also progress the long-term capital investment required to secure Debswana’s position as one of the world’s leading diamond producers, and Botswana’s largest private employer, for decades to come. In terms of job opportunities, it will create the potential for tens of thousands of new jobs in Botswana, both within an expanded Botswana-based diamond industry and emerging sectors, with a focus on supporting the growth of a knowledge-based economy.


Al Cook, CEO of De Beers, said: “For De Beers it is a privilege to renew our half-century partnership with the people of Botswana. It is a partnership that is highly regarded around the world for the enduring role it has played in creating economic development and growth. 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. The agreement represents our commitment to deliver investments in Botswana’s diamond production, Botswana’s diamond value chain, Botswana’s knowledge-based economy and, above all, the people of Botswana.” (Photo courtesy: De Beers)



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