De Beers has signed new diamond sales and mining agreements with Botswana’s government, formally concluding lengthy, years-long negotiations.

The new 10-year sales agreement – viewed as critical to the economic growth of Botswana – effectively raises the share of rough diamonds from Debswana Diamond Co that are sold via government-run Okavango Diamond Co (ODC) to 30 per cent in the first five years and to 40 per cent over the next half of the 10-year deal. ODC’s share of the sales could further increase to 50 per cent during a potential five-year extension period. 

Debswana is a 50:50 joint venture between De Beers and Botswana, which operates several diamond mines, namely Jwaneng, Orapa, Letlhakane and Damtshaa.

The two parties also signed a 25-year extension of mining licences for Debswana from August 2029 through to July 2054.

The agreement further stipulates the creation of the Diamonds for Development Fund to support economic growth, diversification and jobs in Botswana in line with Botswana’s Vision 2036 and National Development Plan. 

De Beers has committed to an upfront investment of US$75 million and further annual contributions from its dividends from Debswana, based on Debswana’s performance. The miner will also invest in a diamond jewellery manufacturing facility, a De Beers Institute of Diamonds grading laboratory as well as a diamond vocational training institute in collaboration with industry partners.

Negotiations between De Beers and Botswana for a new sales agreement began in 2018. A provisional deal was signed in 2023. 

Minister of Minerals and Energy for Botswana Bogolo Joy Kenewendo said the landmark agreement, finalised in February 2025, underpins the success of Botswana’s diamond industry and is instrumental to rebuilding market confidence in the diamond trade while De Beers CEO Al Cook described the pact as "groundbreaking." He added, "The half-century partnership between Botswana and De Beers is considered the greatest public-private partnership in the world. Now we are both extending and improving it."   

Challenging market

In another development, Anglo American, which owns De Beers, has written down the value of its diamond mining business by US$2.9 billion, following a US$1.6-billion impairment in 2024.

De Beers’ parent company cited a challenging diamond market as having a huge impact on De Beers' operations. Anglo American earlier announced plans to sell De Beers.

“The work to separate De Beers is well under way, with action taken to strengthen cash flow in the near term and position De Beers for long-term success and value realisation. Given prevailing diamond market conditions, we have reduced our carrying value of De Beers by US$2.9 billion,” explained Anglo American.

Diamond production was considerably lower in 2024, reflecting a proactive response to a prolonged period of weak demand and higher-than-normal levels of inventory in the midstream.

According to Ango American, consumer demand for diamond jewellery globally in 2024 is expected to have dropped 3 per cent to 4 per cent year on year. In the US alone, which accounts for just over 50 per cent of diamond jewellery sales, demand is estimated to have fallen 2 per cent over the same period last year.

De Beers’ rough diamond production was also down by 22 per cent to 24.7 million carats while a year-on-year reduction in revenue of 23 per cent to US$3.3 billion was recorded. 

Production guidance for 2025 is pegged at 20 million to 23 million carats, reflecting challenging rough diamond trading conditions. Production will then be increased steadily over the next two years to 28 million to 31 million carats in 2027 in response to an anticipated market recovery, remarked Anglo American.