Botswana and De Beers Renew Diamond Sales Agreement with…

Slaughter and May advised the Government of Botswana on renegotiating its agreement with De Beers, resulting in a 10-year sales agreement for rough diamonds. This includes a 1 billion pula investment for economic development initiatives and local diamond industry participation. Debswana, a joint venture between the Government and De Beers, is a leading diamond producer, significantly contributing to Botswana’s GDP.

Slaughter and May provided legal counsel to the Government of the Republic of Botswana concerning its renegotiation with the De Beers group. On February 25, 2025, the parties executed a new ten-year sales agreement pertaining to rough diamonds produced by the Debswana mining joint venture. This agreement allows for a potential five-year extension subject to specific criteria being met.

The new sales agreement encompasses numerous provisions, including the issuance of new mining licenses and a commitment package aimed at fostering economic development and advancing Botswana’s diamond industry. Notably, De Beers has pledged a significant initial investment of 1 billion Botswana pula into the Diamonds for Development Fund, which is designed to stimulate economic growth, job creation, and local diamond beneficiation initiatives.

Debswana operates as a 50:50 joint venture between the Government and De Beers, having been established in 1969. It manages four diamond mines in Botswana, including the Jwaneng mine, and is recognized as one of the world’s foremost diamond producers by value. The operations of Debswana contribute substantially to the nation’s GDP.

Slaughter and May offered comprehensive advice throughout the negotiation process, which was informed by heads of terms outlined in September 2023 and stems from extensive negotiations over the years. This collaboration occurred within an integrated team alongside the Government.

In conclusion, the new ten-year sales agreement between the Government of Botswana and De Beers marks a significant advancement in their partnership. The arrangement includes a substantial investment and aims to support Botswana’s economic aspirations through various initiatives in the diamond sector. With Debswana being a critical contributor to the national economy, these developments are poised to enhance local participation and economic stability.

Original Source: www.slaughterandmay.com