De Beers and Botswana Forge Landmark Diamond Sales Pact

Botswana's government and De Beers have agreed on a 10-year diamond sales deal, with a possible five-year extension. The deal splits sales between Okavango Diamond Company and De Beers, with varying percentages over time. Both parties have committed to diamond beneficiation in Botswana.

In a significant development, Botswana's government and Anglo American's De Beers division announced a transformative 10-year diamond sales agreement on Tuesday. The contract, which could be extended by another five years, establishes a pivotal framework for the distribution of Debswana's production.

The terms dictate that Botswana's state-owned Okavango Diamond Company (ODC) will handle 30% of sales while De Beers will manage 70% over the initial five years. In the subsequent term, ODC's share will climb to 40% while De Beers' stake will adjust to 60%. If extended, the arrangement would evolve to an equitable 50%-50% distribution.

According to the statement, both De Beers and ODC are committed to supplying diamonds for beneficiation within Botswana, aligning with their respective shares of Debswana's output, thereby bolstering local economic benefits.