Experts have expressed approval of the long-awaited rough diamond sales agreement between Botswana and South African mining giant De Beers, signed on Tuesday February 25 after six years of negotiations. The 10-year deal marks a significant step forward, with Botswana securing a larger share of the diamonds mined through a joint venture between the government and De Beers. Under the new terms, Botswana’s share will rise from 25% to 30%, with plans for this to increase to 40% within the next five years. The deal also ensures that De Beers’ mining licences in Botswana will remain in place until 2054.
Local economist Keith Jefferis welcomed the deal, noting that it brings much-needed stability to the global diamond industry. Jefferis particularly highlighted the extension of mining leases for Botswana’s major mines, Jwaneng and Orapa, as a key positive outcome of the negotiations. President Duma Boko echoed these sentiments, expressing satisfaction with the fairness of the deal. He remarked that a successful negotiation is one where all parties feel they have achieved a balanced and equitable outcome, and noted that the agreement would benefit Botswana significantly.
De Beers’ Chief Executive, Al Cook, emphasised that the new deal also focuses on collaboration between De Beers and the Botswana government in marketing the diamonds, an aspect that has not been prioritised in previous agreements. De Beers has committed to investing $75 million in a diamond development programme as part of the partnership. However, the Kimberley Process Civil Society Coalition, which monitors the global diamond trade to prevent the sale of conflict diamonds, has called for the deal to deliver tangible benefits to local communities where the diamonds are mined, ensuring that the country’s wealth is shared more equitably.