De Beers Group and the Government of Botswana have signed formal agreements solidifying their long-term partnership in diamond mining and sales.
The deal includes a 10-year rough diamond sales agreement, with the possibility of a five-year extension, and a 25-year renewal of Debswana’s mining licences, ensuring continued collaboration in one of the world’s most significant diamond-producing regions.
Key Terms of the Agreement
The new agreements extend Debswana’s mining licences from August 2029 to July 2054, allowing for long-term resource management and the continuation of key mining projects such as Jwaneng Cut-9, Jwaneng Underground, and Orapa Cut-3.
Under the revised sales framework, Botswana’s state-owned Okavango Diamond Company (ODC) will gradually receive an increased share of Debswana’s rough diamond production. Initially, ODC will sell 30% of the production for the first five years, increasing to 40% for the subsequent five years. Should the sales agreement extend for an additional five years, both ODC and De Beers will each market 50% of the output.
Botswana’s Minister of Minerals and Energy, Bogolo Joy Kenewendo, commented:
“We are proud to announce the signing of this landmark new agreement, which will underpin the success of our diamond industry as we enter an exciting new phase of Botswana’s sustainable economic development. We hope that these agreements will bring some level of stability and rebuild market confidence in the diamond industry.”
Economic and Industry Impact
A key aspect of the agreement is the creation of the Diamonds for Development Fund, designed to support economic diversification and job creation in Botswana. De Beers has committed an initial investment of BWP 1 billion (approximately $75 million) and will contribute additional funds based on Debswana’s performance.
The agreement also prioritises local beneficiation, with De Beers committing to initiatives that will enhance Botswana’s role in the diamond industry. These include:
- Establishing a diamond jewellery manufacturing facility
- Opening a De Beers Institute of Diamonds grading laboratory
- Developing a diamond vocational training institute in collaboration with industry partners
To sustain consumer confidence and market demand, De Beers and the Botswana government will co-invest in marketing initiatives over the duration of the sales agreement. These efforts will focus on category marketing, protecting the ethical integrity of diamonds, and maintaining consumer trust in natural diamonds amid increased competition from lab-grown alternatives.
Long-Term Implications for the Diamond Sector
The agreement reinforces Botswana’s position as a key player in the global diamond market while securing De Beers’ long-term access to some of the world’s most valuable diamond resources. The structured increase in ODC’s share of Debswana’s production reflects a shift towards greater local control over Botswana’s diamond supply, a move that aligns with the country’s broader economic development goals.
Al Cook, CEO of De Beers Group, stated:
“These are groundbreaking agreements. The half-century partnership between the Government of Botswana and De Beers is considered the greatest public-private partnership in the world. Now we are both extending and improving it. For De Beers, it is a privilege to secure our ongoing participation in the world’s greatest diamond resources for decades to come.”
For the jewellery industry, the agreement provides stability in rough diamond supply and signals an ongoing commitment to natural diamonds. The increased focus on beneficiation and marketing efforts may also help drive demand and reinforce the value of mined diamonds in an evolving market.
