03 Jul 2023

The diamond mining partnership between the government of Botswana and De Beers has been extended, with the country due to benefit more from involvement in various levels of the diamond industry value chain. 

The two parties confirmed the renewal of the nuptials on Saturday, signalling the continuation of one of the world’s better renowned business partnerships between state and private sector actors that has spanned five decades and contributed to Botswana’s rise from underdeveloped to middle income country status. 

The duo revealed that they had reached an agreement in principle on a 10-year sales agreement for Debswana’s rough diamond production due to extend to 2033, and new 25-year Debswana mining licences to 2054. 

The De Beers Group is a global corporation engaged in diamond mining in Botswana, Namibia, South Africa and  Canada, and operates open pit, large scale mining as well as diamond retail and industrial manufacturing. 

Their mining operations in Botswana have taken place through Debswana Diamond Company, which operates the Jwaneng, Orapa Letlhakane and Damtshaa diamond mines, and is a joint venture between Botswana and De Beers, each party having a 50 per cent shareholding. 

A De Beers Group media release says that the new deal between government and De Beers will significantly improve Botswana’s foothold in the diamond industry. 

This will include increasing the supply of raw diamonds sold through the state-owned Okavango Diamond Company (ODC) progressively from 30 per cent of Debswana production at the start of the contract to 50 per cent in the final year. 

Also, there will be long term capital investment to secure Debswana’s position as one of the world’s largest diamond producers and a large scale private sector employer in Botswana. 

Further, the creation of a Pula Diamonds for Development Fund, with De Beers due to invest P1bn and contribute over the next 10 years, a sum that could total P10bn in the first decade, will create additional value to Botswana’s economy. 

Potentially, tens of thousands of jobs could be created within the expanded diamond industry in Botswana and growth of a knowledge-based economy, the media release pledges. 

President Dr Mokgweetsi Masisi has occasionally stressed the need for Botswana as the world’s largest diamond producer by value to be more proactively involved in the diamond industry value chain and benefit more from her resource. Ends