Botswana and De Beers Finalize Ten-Year Diamond Sales Agreement
Botswana and De Beers have finalized a significant ten-year sales agreement allowing Botswana to sell up to 50% of its rough diamonds by 2035. This partnership aims to reverse dwindling diamond revenues, which have declined significantly in recent years. Botswana’s Minister of Minerals indicated that the agreement would be signed before February’s end, with a possibility for renewal.
Botswana and De Beers, the prominent South African diamond firm, have successfully concluded a ten-year sales agreement following extensive negotiations that commenced in 2019. This agreement allows the Botswana government to initially sell 30% of the rough diamonds produced through their joint venture, with the potential to increase this percentage to 50% by the year 2035. This pivotal arrangement aims to mitigate the significant decline in diamond revenue, which has decreased from $7 billion annually in prior years to $4.2 billion in 2023 due to dwindling demand for diamonds.
The new deal has garnered support from various sectors, with De Beers CEO Al Cook expressing his approval and the World Diamond Council also welcoming it. The partnership highlights a renewed commitment to foster enduring and stable relationships within the diamond industry. Botswana’s Minister of Minerals, Bogolo Kenewendo, has stated that the formal signing of the agreement is anticipated to take place prior to the end of February, and there is an option for a five-year renewal upon the agreement’s completion.
In conclusion, the finalized ten-year agreement between Botswana and De Beers signifies an essential step towards revitalizing the diamond industry and stabilizing revenue streams. This collaboration not only enhances Botswana’s ability to market its diamonds but also reflects a dedication to maintaining robust partnerships in the sector. The arrangement is expected to yield significant benefits as Botswana increases its share of diamond sales in the coming years.
Original Source: www.africa.com