Botswana Secures New Diamond Deal with De Beers

Botswana has secured a 10-year diamond sales deal with De Beers, with a possible five-year extension. This agreement revises Botswana's share in diamond production to 40% initially, with potential to rise to 50%. The deal is critical for Botswana's diamond-dependent economy.

Botswana's government has secured a long-awaited 10-year diamond sales agreement with De Beers, ensuring a potential five-year extension. The deal, finalized Tuesday, modifies Botswana's stake in the Debswana joint venture, increasing Okavango Diamond Company's production share to 40% by the agreement's conclusion.

The arrangement might boost ODC's allocation to 50% during the extension phase. It marks a significant shift from the previous provisional agreement, which had set a 50% share by the pact's end. Negotiations, stalled since 2018, were concluded after President Duma Boko prioritized the deal following his election last October.

Botswana's economy, heavily reliant on diamond exports, faced contraction due to a global diamond market slump. However, the government expects economic recovery, attributing it to improvements in the diamond sector and other areas. Debswana's mining licenses, part of this agreement, have been extended until 2054.