The Government of Botswana and De Beers Group have signed a landmark 10-year Sales Agreement and a 25-year Mining Licence extension for the Debswana joint venture. This partnership aims to bolster economic growth and market confidence in Botswana’s diamond industry, while introducing initiatives for local job creation and education. The Diamonds for Development Fund will further support these objectives.
The Government of Botswana and De Beers Group have formalized their long-standing partnership by signing a new 10-year Sales Agreement, potentially extendable for another five years, alongside a 25-year extension of their Mining Licences. This agreement strengthens the Debswana joint venture while securing the country’s diamond resources until 2054.
Minister Bogolo Joy Kenewendo emphasized the importance of this agreement for Botswana’s diamond industry and its potential to foster sustainable economic growth. She expressed optimism about restoring market confidence and enhancing development opportunities for local communities.
Al Cook, CEO of De Beers Group, characterized this partnership as historically significant, underscoring the privilege of contributing to Botswana’s diamond sector for decades. He highlighted the role of the Diamonds for Development Fund in expanding prospects for Botswanan citizens.
Key aspects of the agreement include a 25-year mining licence extension to 2054, aimed at sustaining long-term operations. The renewed Sales Agreement involves Okavango Diamond Company handling 30% and De Beers 70% of rough diamond sales initially, with ODC’s share increasing to 40% by year five. Both companies are committed to local diamond beneficiation initiatives.
The agreements also introduce the Diamonds for Development Fund, with De Beers pledging BWP 1 billion, followed by annual contributions linked to Debswana’s performance. Initiatives in local diamond manufacturing, grading, and vocational training are planned to enhance local industry participation.
Furthermore, the joint marketing investments will focus on increasing diamond demand and maintaining the ethical integrity of the product, with structured co-investment aligned with the shares of Debswana. This holistic approach aims to stimulate growth while ensuring consumer confidence.
In summary, this transformative partnership aims to bolster Botswana’s diamond industry and economic growth, ensuring that the wealth generated directly benefits its citizens. Such collaborations reinforce Botswana’s position in the global diamond market while promoting sustainable practices.
De Beers, established in 1888, is a leading diamond company engaged in exploration, mining, marketing, and retail. With a commitment to integrity and community welfare, De Beers employs over 20,000 individuals and operates major diamond mines in various regions, dedicated to ethical practices and innovation in the diamond sector.
The partnership between the Government of Botswana and De Beers represents a significant long-term commitment to the diamond industry, aiming to enhance local economic development, stability, and global market presence. Through the Diamonds for Development Fund and various local initiatives, this agreement positions Botswana to maximize its diamond resource potential while ensuring sustainable benefits for its citizens. In sum, the strategic alliance is designed to secure Botswana’s economic future through diamond revenue while fostering community welfare and industrial growth.
Original Source: www.debeersgroup.com
