Botswana Government and De Beers Finalize New Sales Agreement for Diamonds

Slaughter and May advised the Government of Botswana in renegotiating its agreements with De Beers, leading to a new 10-year sales agreement for rough diamonds produced by Debswana. The agreement includes provisions for new mining licenses, economic development investments, and initiatives to boost local diamond processing. Debswana, a joint venture that has been significant to Botswana’s economy, exemplifies the strategic partnership with De Beers.

Slaughter and May provided advisory services to the Government of the Republic of Botswana regarding the renegotiation of its agreements with De Beers. On February 25, 2025, the Government and De Beers formalized a new 10-year sales agreement concerning rough diamonds sourced from the Debswana mining joint venture, with the possibility of extending the agreement for an additional five years under specified conditions.

The newly established sales agreement encompasses various provisions, including the issuance of new mining licenses and a commitment package aimed at promoting Botswana’s economic growth and strengthening the diamond industry. This includes the creation of the Diamonds for Development Fund, with De Beers pledging an initial investment of 1 billion Botswana pula. Furthermore, initiatives are set to enhance local diamond processing and encourage greater community involvement in the diamond sector.

Debswana, a 50:50 joint venture formed in 1969 between the Government and De Beers, operates four diamond mines across Botswana, notably the Jwaneng mine. This venture positions Debswana and Botswana among the world’s leading diamond producers by value, significantly contributing to the nation’s GDP.

Slaughter and May assisted in all facets of the new arrangements, which are based on heads of terms established in September 2023. These agreements represent the culmination of extensive negotiations and were developed in close collaboration with the Government of Botswana.

In conclusion, the recent renegotiation between the Government of Botswana and De Beers marks a significant development for the diamond industry in Botswana, emphasizing economic growth and local participation. The new sales agreement, with its potential extension and supportive initiatives, underscores a long-term commitment to enhancing the contributions of the diamond sector to the national economy.

Original Source: www.slaughterandmay.com