Botswana and De Beers Finally Sign Deal
January 30, 25
(IDEX Online) - Botswana and De Beers have finally signed the sales agreement that was due for renewal back in June 2023.
Botswana's new president Duma Boko said terms were finalized on 24 January, according to a Bloomberg news report.
"The issue with De Beers has been settled," Boko said in Dar es Salaam, Tanzania, where he is attending an energy conference, although De Beers is yet to issue a statement.
Last Thursday Boko told reporters at the World Economic Forum's annual meeting in Davos, Switzerland, last Thursday (23 January) that a deal was imminent, with just some "tidying up" left to do.
Agreement was reached the following day but was not made public until earlier this week.
The deal is understood to be broadly the same as that agreed - but never signed - by Boko's predecessor Mokgweetsi Masisi.
It will see Botswana's share of diamonds from Debswana - its joint venture with De Beers - increase from 25 per cent to 50 per cent over the next decade.
It also extends mining licenses until 2054 and commits De Beers to invest up to $825m over 10 years to help develop Botswana's economy beyond diamonds.
The agreement is critical for both sides. Diamonds have transformed Botswana since they were first discovered (at Orapa) just six months after the country gained independence from Britain in 1966.
They account for around 80 per cent of export earnings and a third of total budget revenues.
Botswana's diamonds also account for around 70 per cent of De Beers' rough supply.
But he global downturn has had a devastating effect on Botswana's diamond-based economy, with sales by Debswana down by 52 per cent in the first three quarters of 2024.