Botswana and De Beers have signed new agreements extending Debswana’s operations to July 2054, including a 10-year sales agreement and 25-year mining license extension. Key provisions involve local diamond sales by ODC and De Beers, as well as initiatives for economic development, employment, and local beneficiation. This landmark partnership aims to secure a sustainable future for Botswana’s diamond industry.
The Government of Botswana and De Beers Group have established new agreements that extend operations of the Debswana mining joint venture until July 2054. This includes a significant ten-year sales agreement for rough diamonds, which may extend by an additional five years, and a twenty-five year extension of mining licenses from 2029. This will support long-term value generation from existing mining operations and future projects, including Jwaneng Cut-9, Jwaneng Underground, and Orapa Cut-3.
Key adjustments under the renewed sales agreement entail that the Okavango Diamond Company (ODC) will manage the sale of 30% of Debswana’s rough diamond production, with De Beers selling 70% in the initial five years. In the second five-year period, ODC will increase its share to 40%, while De Beers will reduce its share to 60%. Both partners will sell 50% during any potential five-year extension, supporting local diamond beneficiation.
Honourable Bogolo Joy Kenewendo, Botswana’s Minister of Minerals and Energy, remarked on the agreement’s potential to enhance stability and rebuild confidence in the diamond industry. The collaboration aims to drive economic advancement through this partnership with De Beers, focusing on sustainable development for Batswana communities.
Al Cook, CEO of De Beers Group, expressed pride in the extended partnership, highlighting the importance of their collaboration with Botswana. He noted the unique position of their fifty-year relationship as the world’s premier public-private partnership, emphasizing their ongoing commitment to the diamond resource sector and the Diamonds for Development Fund.
The new agreements between the Government of Botswana and De Beers will allow Debswana to operate until 2054, including provisions for local diamond sales and economic development initiatives. This significant partnership aims to bolster Botswana’s diamond industry while fostering sustainable growth and local employment through various initiatives, including the Diamonds for Development Fund and training facilities. Overall, there’s a shared vision for promoting the diamond sector in Botswana, ensuring local participation and market stability.
Original Source: im-mining.com
