De Beers Group and Botswana inked a 10-year sales agreement, potentially extendable by five years, along with a 25-year extension of mining licenses for Debswana. Anglo’s CEO emphasized the significance of the partnership, while President Boko conveyed optimism for Botswana’s future. The agreements occur after prolonged negotiations and aim to stabilize the diamond market amid financial challenges faced by De Beers.
De Beers Group and the government of Botswana have officially signed a significant new agreement in Gaborone, encompassing a 10-year sales pact that has the potential for a 5-year extension. They also agreed on a 25-year extension for mining licenses under Debswana, the joint venture that operates Botswana’s Jwaneng and Orapa diamond mines.
Anglo American’s CEO, Duncan Wanblad, expressed satisfaction with the new partnerships, highlighting the affirmation of De Beers’ leadership in the diamond industry while enhancing confidence across the diamond value chain.
Botswana’s newly inaugurated president, Duma Boko, noted at the ceremony that the deal marks a promising commitment to the future, emphasizing its importance for the citizens of Botswana.
These agreements, concluded after six years of negotiations, align with previously established terms from September 2023. This collaboration aims to foster stability and support the recovery of the rough diamond market amidst recent trading challenges.
The recent contracts come amidst financial restructuring, with Anglo American reflecting a downward valuation of De Beers by $2.9 billion, now valuing the company at $4.1 billion after a previous $1.6 billion write-down in 2024.
The signing of the sales agreement and mining license extension between De Beers and Botswana solidifies a long-term partnership aimed at ensuring stability in the diamond sector. Both parties highlight the strategic importance of this alliance as they navigate challenging market conditions, further establishing De Beers’ prominent role in the global diamond industry. This deal not only offers immediate benefits but also positions both entities for future growth and resilience in an evolving market.
Original Source: www.jckonline.com
