The government of the Republic of Botswana and De Beers announced on 25 February 2025 that, following the conclusion of negotiations announced on 3 February 2025, the two partners have now signed the formal new agreements for a 10-year Sales Agreement (which may be extended by a further 5 years) and a 25-year extension of the Mining Licences (from 2029 through to 2054) for the 50:50 Debswana mining joint venture.
According to the formal agreements, the 25-year extension of the Debswana mining licences from August 2029 to July 2054 will enable the Debswana joint venture to deliver long-term value from its existing mining assets and mine life extension projects beyond the current mining licence period.
Under the renewed 10-year Sales Agreement for Debswana’s rough diamond production, with a further five-year extension period where certain criteria are met, Botswana’s rough diamond sales company, Okavango Diamond Company (ODC), will sell 30 percent and De Beers will sell 70 percent of Debswana’s production for the first five years. For the subsequent five years ODC will sell 40 percent, and De Beers will sell 60 percent of Debswana’s production; and both parties will sell a 50 percent 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.
Bogolo Joy Kenewendo, minister of Minerals and Energy for Botswana, said: “We are proud to announce the signing of this landmark new agreement, which will underpin the success of our diamond industry as we enter an exciting new phase of Botswana’s sustainable economic development. We hope that these agreements will bring some level of stability and rebuild market confidence in the diamond industry. We are looking forward to our renewed partnership with De Beers; together we will drive development through diamonds and build a brighter future for Batswana.”
In addition, a transformational package of commitments focused on supporting Botswana’s economic development objectives and advancement of the diamond industry has been agreed. It includes 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; 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; co-investment by the Government of Botswana and De Beers in marketing initiatives to boost diamond demand. (Photo courtesy: De Beers)
04-03-2025
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