Botswana and De Beers Formalize Strategic Diamond Partnership for Future Growth

The Government of Botswana and De Beers have signed transformative agreements to enhance the Botswana diamond industry, securing a 10-year Sales Agreement and a 25-year Mining Licences extension for their joint venture, Debswana. These agreements aim to stabilize the industry, foster economic development, and increase local participation in diamond beneficiation, alongside a significant investment to support Botswana’s Vision 2036.

The Government of the Republic of Botswana and De Beers Group have formalized a robust partnership aimed at bolstering Botswana’s diamond industry and advancing the nation’s economic development. This agreement includes a 10-year Sales Agreement, potentially extendable by an additional five years, alongside a 25-year extension of the Mining Licences for their joint venture, Debswana, enhancing stability and investor confidence in the sector.

Honourable Bogolo Joy Kenewendo, Botswana’s Minister of Minerals and Energy, expressed pride in the agreements, highlighting their significance in strengthening the diamond industry and promoting sustainable economic growth in Botswana. Al Cook, Chief Executive Officer of De Beers Group, emphasized the groundbreaking nature of these agreements, acknowledging the longstanding partnership between the two entities as a remarkably successful public-private collaboration.

The agreements entail a 25-year mining license extension from August 2029 to July 2054, ensuring long-term value from existing assets and future mining projects. A renewed 10-year Sales Agreement will delineate diamond distribution: 30% by Okavango Diamond Company and 70% by De Beers initially, gradually shifting to a 50-50 distribution in the extension phase. Both entities are committed to local diamond beneficiation initiatives.

Furthermore, a Diamonds for Development Fund has been established with a commitment of BWP 1 billion (approximately $75 million) from De Beers to bolster economic growth and job creation in alignment with Botswana’s Vision 2036. Initiatives to enhance local participation and diamond processing include investments in manufacturing facilities and vocational training programs. Marketing co-investments will ensure sustained demand for diamonds and maintain ethical practices within the industry.

In conclusion, the new agreements between the Government of Botswana and De Beers signify a significant milestone in the partnership aimed at advancing Botswana’s diamond industry and overall economic development. The initiatives initiated will foster local beneficiation, job creation, and enhance market confidence within the diamond sector, paving the way for sustainable growth and prosperity for the nation and its citizens.

Original Source: www.debeersgroup.com