Miner Anglo American's diamond unit De Beers said on Monday it had finalised negotiations with the Botswana government for a new rough diamond sales agreement and extended mining licences for its joint venture beyond 2029.
Debswana, a 50:50 joint venture between top diamond producer Botswana and De Beers, sells 75% of its output to De Beers.
In 2023, Botswana and De Beers agreed to a fresh 10-year diamond sales deal under which the government's share of diamonds from the Debswana JV will increase to 30% and gradually rise to 50% over the decade.
However, the agreement was not signed under the leadership of former president Mokgweetsi Masisi.
On January 23 Botswana's new President Duma Boko said he hoped to clinch a long-delayed sales pact with De Beers soon.
In addition, Boko said talks aimed at increasing Botswana's 15% ownership stake in De Beers were “going well”.
Anglo American is seeking to divest De Beers as part of a broader restructuring plan aimed at refocusing its operations on copper and iron ore mining.
Reuters
De Beers agrees on fresh sales agreement with Botswana
Image: 123RF/MAKSIM SHBEKO
Miner Anglo American's diamond unit De Beers said on Monday it had finalised negotiations with the Botswana government for a new rough diamond sales agreement and extended mining licences for its joint venture beyond 2029.
Debswana, a 50:50 joint venture between top diamond producer Botswana and De Beers, sells 75% of its output to De Beers.
In 2023, Botswana and De Beers agreed to a fresh 10-year diamond sales deal under which the government's share of diamonds from the Debswana JV will increase to 30% and gradually rise to 50% over the decade.
However, the agreement was not signed under the leadership of former president Mokgweetsi Masisi.
On January 23 Botswana's new President Duma Boko said he hoped to clinch a long-delayed sales pact with De Beers soon.
In addition, Boko said talks aimed at increasing Botswana's 15% ownership stake in De Beers were “going well”.
Anglo American is seeking to divest De Beers as part of a broader restructuring plan aimed at refocusing its operations on copper and iron ore mining.
Reuters
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