Botswana and the mining company De Beers have announced a new diamond sales deal. This agreement, finalized on Friday, grants Botswana a larger share of rough diamonds from their joint venture.
Debswana, a joint venture between De Beers, a unit of Anglo American, and the Botswana government, sells 75% of its output to De Beers, while the remaining portion is allocated to the state-owned Okavango Diamond Co.
The new deal includes a 10-year sales agreement for Debswana’s rough diamond production, extending until 2033, and 25-year mining licenses for Debswana.
Leading up to the deal, Botswana President Mokgweetsi Masisi, who is likely to seek re-election next year, advocated for a greater share of Debswana’s output for Botswana. In March, Botswana announced it would acquire a 24% stake in the Belgian gem processing firm HB Antwerp, a move perceived as an effort to reduce De Beers’ dominance over the country’s gem industry.
Botswana is a major supplier of rough diamonds, providing 70% of De Beers’ rough diamonds.
