2023-07-01 16:13:00
(Ecofin Agency) – Botswana supplies 70% of the rough diamonds produced by De Beers. For months, his government and the group of South African origin have been negotiating to renew their partnership which expired yesterday June 30, 2023. Gaborone notably demanded a greater share of the profits.
The government of Botswana and the mining group De Beers, a subsidiary of the British Anglo American, arrived on the night of June 30 at a “ agreement in principle in view of a new 10-year contract on the exploitation of local diamonds, ie until 2033. New mining permits valid for 25 years are included in the agreement and extend the presence of De Beers in the country until in 2054.
Done Deal! ✔️
The transformational new agreements between the Government of Botswana and DeBeers reflects the aspirations of the people of Botswana. #AdvancingTogether #PushaBW #ResetBW #TransformBW #EmpowerBatswana #GoMasisi ?? pic.twitter.com/5itNP4deJr
— Dr. McCarthy. Driver EK Masisi (@OfficialMasisi) July 1, 2023
No details have yet been provided on the terms of the new contract, in particular whether it will allow, as Gaborone has wanted for months, Botswana to obtain a greater share of the production of Debswana, the joint venture responsible for producing the diamonds on behalf of both parties. The statement simply states that it is a ” transformative agreement that reflects the aspirations of the people of Botswana ».
Botswana Minister of Minerals Energy Lefoko Moagi and De Beers CEO Al Cook before signing the new diamond mining partnership agreement in Gaborone, Botswana on Saturday morning. @TimesLIVE @SundayTimesZA pic.twitter.com/V0GUClzpRN
— Isaac Mahlangu (@IsaacPat) July 1, 2023
In the previous partnership which expired on Friday June 30, 2023, Debswana sells 75% of its production to the De Beers group against 25% to the Botswanan diamond trading company, Okavango Diamond. An interim agreement has been reached between the parties to maintain the terms of this contract until the formal finalization of the new partnership.
Botswana is the world’s largest producer of diamonds by value and the second by volume behind Russia, according to data from the Kimberley Process dating from 2022. These precious stones represent two thirds of the country’s foreign exchange earnings and 20% of its GDP. . The partnership is also very beneficial for De Beers, which produces 70% of its rough diamonds in Botswana.
Emiliano Tossou
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26/05/2023 – The collaboration between Botswana and De Beers is more than ever under threat
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