De Beers Group said negotiations with the Government of the Republic of Botswana to establish a new rough sales agreement and extend mining licences have successfully concluded.

Botswana and De Beers own Debswana Diamond Co, a 50:50 joint venture that operates several diamond mines in Botswana, namely Jwaneng, Orapa, Letlhakane and Damtshaa. The negotiations focused on establishing a new sales agreement for Debswana’s rough diamond production as well as extending Debswana’s mining licences beyond 2029. 

“Following the issuance of new mining licences by the appropriate regulatory authorities in Botswana and final governance approvals, both parties look forward to signing and executing the relevant agreements,” noted De Beers. “Until the execution of these new agreements, the terms of the existing agreements will continue to remain in effect.” 

The group said both parties reaffirmed their commitment to this partnership, which has lasted over 50 years. 

“This collaboration is aimed at the responsible recovery, marketing and sale of diamonds, ensuring the sustainability of the global diamond industry while enhancing the significant fiscal and societal contributions that diamonds provide to Botswana,” added De Beers. 

In September 2023, De Beers and Botswana signed the Heads of Terms for a new 10-year sales deal for rough diamond production through to 2033 and a 25-year extension of the Debswana mining licences through to 2054.

The terms likewise provided further detail and clarity to the commercial and operational aspects of the biparty agreement in principle announced in June 2023. These included raising the share of rough diamonds sold via government-run Okavango Diamond Co from 30 per cent at the start of the new contract to 50 per cent by its final year. De Beers is also investing US$75 million to create the Diamonds for Development Fund “to accelerate Botswana's economic diversification,” with further contributions that could total US$750 million over the next 10 years.