De Beers and Botswana concur to extend their diamond deal sales agreement

After announcing a 10-year extension to their diamond sales deal, Botswana and the London-based international diamond consortium De Beers have put an end to any lingering doubts about their long-standing collaboration.

In a joint statement issued late on Friday, Botswana and De Beers said the mining license would remain in effect for another 25 years while their sales agreement had been extended until 2034.

Neither a price nor additional information regarding the distribution of raw stones were provided, but according to the government and De Beers, the new agreement “reflects the aspirations of the people of Botswana.”

Lefoko Moagi, the minerals minister for Botswana, told the media last week that a deal was close and that it would be advantageous for all parties.

“We are progressing. We have a lot of hope. We are completely aware of the implications for Botswana, De Beers, and the diamond sector. We will tend to favor outcomes that are at least a win-win for everyone involved, according to Moagi.

Mokgweetsi Masisi, the president of Botswana, maintained a tough stance during the negotiations by stating that his nation was ready to leave if a satisfactory agreement could not be achieved.

In accordance with the prior arrangement, Debswana, a partnership between the government and De Beers, was to get 25% of the rough diamonds extracted.

About 70% of De Beers’ raw diamonds came from Botswana last year.

About one-third of Botswana’s GDP comes from the diamond mining industry, which also plays a significant role in the country’s ascension to sixth place in terms of wealth on the continent.