Optimism over Botswana, De Beers deal

03 February 2025 - 14:46
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De Beers CEO Al Cook and Botswana's minister of minerals and energy Bogolo Kenewendo meet at the Investing in African Mining Indaba in Cape Town on February 3 2025.
De Beers CEO Al Cook and Botswana's minister of minerals and energy Bogolo Kenewendo meet at the Investing in African Mining Indaba in Cape Town on February 3 2025.
Image: Esa Alexander/Reuters

Botswana, the world's second largest diamond producer after Russia, and De Beers have concluded talks to establish a new rough diamond sales agreement after five years of negotiations.

The new sales agreement paves the way for the extension of mining licences for Debswana, a 50:50 joint venture between Botswana and De Beers beyond 2029. It will also set out how De Beers and the government will jointly work together to market diamonds and the country.

Speaking during a press conference at the sidelines of the Investing in African Mining Indaba in Cape Town, De Beers CEO Al Cook said: “For the first time we will have a structure, a marketing committee that jointly sets out how we market diamonds, how we appeal to a new generation of consumers around the world and how we market the most beautiful diamonds for the most beautiful country, Botswana.”

The agreement also sets out the framework for a development programme in which the company will contribute 1bn pula (R1.34bn) and work with the government to develop the people beyond diamonds.

“This is the biggest private-public partnership on earth,” he said.

The mining giant and Botswana have enjoyed a 50-year diamond extraction and sale partnership, but the country has been wanting more from the partnership, with speculation in 2023 saying it was lining up HB Antwerp as a replacement company should negotiations fail.

Botswana’s minister of minerals and energy Bogolo Kenewendo told the media the deal will be signed shortly. She said the terms of the existing agreements remain in place pending the issuing of the mining licences and government approvals.

“We hope this agreement will bring stability and rebuild market confidence in the diamond industry. We are looking forward to continued partnership with De Beers over the next 10-plus years as this agreement stands now with an option to extend for a further five years,” she said.

Diamonds, which were discovered in Botswana in 1967, are a main driver of the country’s economy which is home to some of the world’s leading mines including Jwaneng, Orapa, Letlhakane and Damtshaa.

Business Times


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