Botswana and De Beers Establish Long-term Diamond Partnership for Economic Growth
The Government of Botswana and De Beers Group have formalized a crucial partnership with agreements that extend mining licenses for Debswana and establish a new sales framework, set to enhance the region’s economic prospects. This collaborative effort focuses on sustainable growth, local beneficiation initiatives, and consumer confidence in the diamond market, signifying a significant step forward for both Botswana and De Beers.
The Government of the Republic of Botswana and De Beers Group have formalized a significant partnership by signing new agreements, including a 10-year Sales Agreement extendable by five years and a 25-year extension of mining licenses for the Debswana joint venture, securing operations from 2029 to 2054. This collaboration aims to improve economic prospects for Botswana while enhancing De Beers’ long-term involvement in diamond resources.
Honourable Bogolo Joy Kenewendo, Botswana’s Minister of Minerals and Energy, expressed pride in the landmark agreement, emphasizing its importance for the diamond industry and the potential for economic stability and growth in Botswana. She highlighted the collaborative efforts to maximize the benefits for the people of Botswana through diamond development.
Al Cook, CEO of De Beers Group, remarked on the groundbreaking nature of the agreements, celebrating the long-standing partnership between De Beers and Botswana as a preeminent example of public-private cooperation. He noted the privilege of continuing participation in the diamond sector, particularly through initiatives such as the Diamonds for Development Fund which aims to further support the nation’s growth.
Key elements of the new agreements include a 25-year extension of Debswana mining licenses, allowing for long-term value extraction and mine life extension projects. Additionally, a renewed Sales Agreement establishes a structure for the distribution of diamond sales that enables both De Beers and the Botswana government to maximize their respective shares.
Furthermore, the agreements introduce a transformational package aimed at supporting Botswana’s economic development and advancing the diamond industry. This initiative includes an investment of BWP 1 billion (approximately $75 million) for growth initiatives aligned with Botswana’s Vision 2036 and projects that will enhance local diamond beneficiation and foster job creation in various sectors.
The partnership also encompasses co-investment in marketing strategies aimed at boosting diamond demand, ensuring ethical integrity, and enhancing consumer confidence in diamonds. Both parties are committed to investing in this initiative throughout the duration of the Sales Agreement, proportionate to their shares of diamond supply, to strengthen market presence and sustainability.
The newly signed agreements between the Government of Botswana and De Beers Group signify a substantial commitment to the growth of Botswana’s diamond industry and the broader economy. By extending mining licenses and establishing a collaborative framework for diamond sales, both entities aim to secure long-term economic benefits for the nation while reinforcing their partnership. The inclusion of a developmental fund and local initiatives further emphasizes a shared vision of sustainable growth and community involvement. Ultimately, these agreements reflect a hopeful outlook for Botswana, combining economic stability, local empowerment, and a commitment to ethical practices in the diamond industry.
Original Source: www.debeersgroup.com
