By James Kunda
LUSAKA, Zambia (AA) - Botswana signed a 10-year diamond mining and sales agreement with Anglo American unit De Beers on Tuesday, which had been in negotiations since 2018.
“A landmark new deal with De Beers, securing a brighter future for Botswana and its people. To the people of Botswana, this agreement is about you, about the jobs it will create," President Duma Boko said in the capital Gaborone at the deal’s signing ceremony.
Under the agreement, Botswana’s share of the diamonds produced by Debswana, a 50-50 joint venture between the government and De Beers, will increase from 25% to 50%.
It also extends the mining licenses for Debswana from 2029 until 2054.
Through the agreement, Botswana will gradually increase its share of rough diamond sales, starting with 30% in the first five years, then rising to 40% in the following five years, and finally reaching 50% during the extension period of the contract, allowing the country to steadily gain more control over its diamond sales.
“The deal also launches the diamonds for development fund, with an initial one billion Botswana pula ($73 million) investment to drive economic growth, job creation and diversification. Additional initiatives include local diamond beneficiation, vocational training, a diamond grading laboratory, and global marketing investments to strengthen Botswana’s leadership in the diamond industry,” the presidency said.
“We hope these agreements will bring some level of stability and rebuild market confidence in the diamond industry,” Minister of Minerals and Energy Bogolo Kenewendo was quoted as saying.
De Beers’ Chief Executive Officer Al Cook said: “I am also extremely proud that through the diamonds development fund, we can further transform opportunities for the people in the world’s leading diamond country.”