The Authorities of the Republic of Botswana and De Beers Group have signed the formal new agreements for a 10-year gross sales settlement (which can be prolonged by an additional 5 years) and a 25-year extension of the mining licences (from 2029 by way of to 2054) for the 50:50 Debswana mining three way partnership.
The announcement follows the conclusion of negotiations introduced on February 3, 2025.
In abstract, the formal agreements characterize:
- A 25-year extension of the Debswana mining licences from August 2029 to July 2054. This can allow the Debswana three way partnership to ship long-term worth from its current mining property and mine life extension initiatives past the present mining licence interval. Mine life extension initiatives embrace Jwaneng Reduce-9, Jwaneng Underground and Orapa Reduce-3; and
- A renewed 10-year gross sales settlement for Debswana’s tough diamond manufacturing, with an additional five-year extension interval the place sure standards are met. Underneath the renewed settlement, the Authorities of Botswana’s tough diamond gross sales firm, Okavango Diamond Firm (ODC), will promote 30% and De Beers will promote 70% of Debswana’s manufacturing for the primary 5 years; for the next 5 years ODC will promote 40% and De Beers will promote 60% of Debswana’s manufacturing; and each events will promote a 50% share for the five-year extension interval. As a part of this association, De Beers and ODC have additionally each dedicated to produce diamonds for beneficiation in Botswana in keeping with their share of Debswana provide.
Honourable Bogolo Pleasure Kenewendo (pictured on the fitting), Minister of Minerals and Vitality for Botswana, mentioned: “We’re proud to announce the signing of this landmark new settlement, which can underpin the success of our diamond business as we enter an thrilling new part of Botswana’s sustainable financial growth. We hope that these agreements will deliver some degree of stability and rebuild market confidence within the diamond business. We’re trying ahead to our renewed partnership with De Beers; collectively we are going to drive growth by way of diamonds and construct a brighter future for Batswana.”
Al Prepare dinner (pictured on the left), Chief Government Officer of De Beers Group, mentioned: “These are groundbreaking agreements. The half-century partnership between the Authorities of Botswana and De Beers is taken into account the best public-private partnership on this planet. Now we’re each extending and enhancing it. For De Beers, it’s a privilege to safe our ongoing participation on this planet’s biggest diamond assets for many years to come back. I’m additionally extraordinarily proud that by way of the Diamonds for Growth Fund, we are able to additional rework alternatives for the folks of the world’s main diamond nation.”
Along with the above, a transformational bundle of commitments centered on supporting Botswana’s financial growth goals and development of the diamond business has been agreed, together with:
- The creation of the Diamonds for Growth Fund to assist financial development, diversification and jobs in Botswana in keeping with Botswana’s Imaginative and prescient 2036 and Nationwide Growth Plan. De Beers has dedicated to an upfront funding of BWP 1 billion (circa-$75 million) and additional annual contributions from its dividends from Debswana, primarily based on Debswana’s efficiency;
- A bundle of initiatives to be undertaken by De Beers designed to boost native beneficiation of diamonds and improve participation of the folks of Botswana within the diamond business. These embrace funding in a diamond jewelry manufacturing facility, institution of a De Beers Institute of Diamonds grading laboratory and beginning up a diamond vocational coaching institute in collaboration with business companions; and
- Co-investment by the Authorities of Botswana and De Beers in advertising initiatives to spice up diamond demand. The advertising investments will likely be for class and different advertising programmes, agreed yearly, aimed toward stimulating tough diamond gross sales, defending the moral integrity of diamonds, and to keep up and construct shopper confidence within the product. De Beers and the Authorities of Botswana have dedicated to co-invest over the lifetime of the gross sales settlement and in proportion to their relative shares of Debswana provide.
