Republic of Botswana and De Beers Group confirm diamond partnership
Lastly, there will be a co-investment by the Government of Botswana and De Beers in marketing initiatives to boost diamond demand
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The Government of the Republic of Botswana and De Beers Group have announced that the two partners have now signed the formal new agreements for the 50:50 Debswana mining joint venture.
The parties have agreed a 10-year Sales Agreement, which may be extended by a further five years, and a 25-year extension of the Mining Licences from 2029 through to 2054.
Under the renewed Sales Agreement, the Government of Botswana’s rough diamond sales company, Okavango Diamond Company (“ODC”), will sell 30% and De Beers will sell 70% of Debswana’s production for the first five years.
For the subsequent five years ODC will sell 40% and De Beers will sell 60% of Debswana’s production; and both parties will sell a 50% share for the five-year extension period.
As part of this arrangement, De Beers and ODC have also both committed to supply diamonds for beneficiation in Botswana in line with their share of Debswana supply.
The parties have also agreed on the creation of the Diamonds for Development Fund to support economic growth, diversification and jobs in Botswana in line with Botswana’s Vision 2036 and National Development Plan.
De Beers has committed to an upfront investment of BWP 1 billion (c. £60m) and further annual contributions from its dividends from Debswana, based on Debswana’s performance.
There will also be a package of initiatives to be undertaken by De Beers designed to enhance local beneficiation of diamonds and increase participation of the people of Botswana in the diamond industry.
Lastly, there will be a co-investment by the Government of Botswana and De Beers in marketing initiatives to boost diamond demand.
Al Cook, De Beers Group CEO, added: “These are groundbreaking agreements. The half-century partnership between the Government of Botswana and De Beers is considered the greatest public-private partnership in the world.
“Now we are both extending and improving it. For De Beers, it is a privilege to secure our ongoing participation in the world’s greatest diamond resources for decades to come. I am also extremely proud that through the Diamonds for Development Fund, we can further transform opportunities for the people of the world’s leading diamond country.”
