Slaughter and May advised Botswana’s Government on renaming its agreement with De Beers, culminating in a new 10-year sales agreement for rough diamonds. The deal focuses on economic development, local job creation, and the establishment of a Diamonds for Development Fund, with an upfront investment of 1 billion pula. This partnership aims to strengthen Botswana’s diamond industry and its contribution to GDP.
Slaughter and May provided advisory services to the Government of the Republic of Botswana in renegotiating its agreements with De Beers. On February 25, 2025, both parties executed a new sales agreement for rough diamonds sourced from the Debswana mining joint venture, which is subject to a potential five-year extension contingent on specified criteria.
The new sales agreement includes provisions for the issuance of new mining licenses and a comprehensive commitment to foster Botswana’s economic development. This includes the creation of the Diamonds for Development Fund, established to enhance economic growth, diversification, and job creation, with De Beers pledging an initial investment of 1 billion Botswana pula. Additionally, measures will promote local diamond beneficiation and increase local participation in the diamond sector.
Debswana is a 50:50 joint venture founded in 1969 between the Botswana Government and De Beers, operating four diamond mines, including the prominent Jwaneng mine. As one of the world’s top diamond producers by value, Debswana significantly contributes to Botswana’s GDP. Slaughter and May oversaw all aspects of the newly formed arrangements, which resulted from preliminary agreements reached in September 2023 and years of negotiations, functioning within an integrated team alongside the Government.
In summary, the new 10-year sales agreement between the Government of Botswana and De Beers aims to secure the future of the diamond industry in Botswana. With key initiatives such as the Diamonds for Development Fund and new mining licenses, both parties are focused on economic growth, local participation, and sustainability. This strategic partnership is crucial for Botswana’s long-term economic stability and the advancement of its diamond sector.
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