De Beers confirms finalization of a diamond sales deal with Botswana government, extends mining licenses to 2054. The agreement, rooted in negotiations since 2018, supports increased ownership for Botswana. With declining diamond prices, De Beers seeks enhanced marketing efficacy through this partnership.
De Beers has finalized negotiations concerning a rough diamond sales agreement with the Botswana government, along with an extension of mining licenses for their joint venture until 2054. Scheduled for a ceremonial signing within weeks, the arrangement underlines the strong partnership between Debswana—a 50:50 venture between Botswana and De Beers—and the government, reflecting new levels of collaboration under President Duma Boko.
The relationship between De Beers and Botswana has evolved through ongoing negotiations since 2018, aiming to increase Botswana’s ownership stake, which currently stands at 15%. The backdrop includes a 10-year agreement established in 2023 to enhance government production shares. De Beers, owned 85% by Anglo American, is undergoing restructuring to refocus on different mining avenues amid declining diamond prices and shifting consumer trends toward lab-grown alternatives.
The finalized deal between De Beers and Botswana signals a pivotal shift in diamond production dynamics, fostering government involvement and potentially increasing ownership stakes. This partnership aims to bolster De Beers’ marketing strategies despite the broader pressures within the diamond market, as prices have seen a notable drop. Continued collaboration under the new leadership aims for greater national benefit from diamond resources.
Original Source: www.miningmx.com
