The Government of Botswana and De Beers Group have signed a groundbreaking agreement for a 10-year Sales Agreement and a 25-year extension of Mining Licenses for Debswana, aimed at enhancing the country’s diamond sector and securing De Beers’ long-term partnership. Investments will support local economic growth and diamond beneficiation initiatives.
The Government of the Republic of Botswana and De Beers Group have formalized a new partnership, securing a 10-year Sales Agreement and a 25-year extension of Mining Licenses for the Debswana joint venture, which operates under a 50:50 investment plan. This agreement strengthens Botswana’s economic development and De Beers’ stake in its extensive diamond resources.
Minister of Minerals and Energy, Honourable Bogolo Joy Kenewendo, expressed pride in this groundbreaking agreement, emphasizing the critical role it will play in stabilizing the diamond industry while fostering development for the citizens of Botswana. The renewed collaboration is expected to enhance market confidence and encourage growth through diamond-related ventures.
Al Cook, the Chief Executive Officer of De Beers Group, praised the agreements as historic, reinforcing the long-standing partnership viewed as a premier public-private collaboration globally. He affirmed De Beers’ commitment to participating in Botswana’s diamond sector while also enhancing opportunities through the Diamonds for Development Fund, focused on local community benefits.
Key components of the agreements include the 25-year extension of Debswana’s mining licenses, which allows for project life extension initiatives, and a renewed Sales Agreement that will see a gradual increase in the share of diamonds sold by the Government of Botswana’s Okavango Diamond Company alongside De Beers.
Additionally, an investment of BWP 1 billion (approximately $75 million) will fortify economic growth projects in line with Botswana’s Vision 2036. Plans include initiatives for local diamond beneficiation, the establishment of a diamond jewellery manufacturing facility, and vocational training programs in partnership with industry stakeholders, effectively boosting local employment in the diamond sector.
Finally, the Government of Botswana and De Beers have pledged to co-invest in marketing campaigns designed to increase diamond demand sustainably while maintaining consumer trust in ethical sourcing. This cooperative endeavor aims to stimulate growth in diamond sales and ensure the integrity of diamonds produced in Botswana.
This newly established partnership between the Government of Botswana and De Beers Group signals a significant commitment towards the sustainable growth of Botswana’s diamond industry. By extending mining licenses and enhancing sales agreements, both parties are poised to drive economic development while firmly placing ethical practices and local beneficiation at the forefront of their operations. This comprehensive approach not only fortifies Botswana’s position in the global diamond market but also ensures that its citizens benefit from the wealth generated through these critical resources.
Original Source: www.debeersgroup.com
