The Government of Botswana and De Beers Group have signed new agreements, including a 10-year Sales Agreement and a 25-year mining license extension. This partnership aims to boost Botswana’s economic growth and secure De Beers’ involvement in diamond mining. Key initiatives include the Diamonds for Development Fund and local diamond processing investments.
The Government of the Republic of Botswana and De Beers Group have formalized new agreements that include a 10-year Sales Agreement with a potential five-year extension and a 25-year extension of mining licenses under the joint venture Debswana. These agreements aim to enhance economic development and secure De Beers’ long-term participation in Botswana’s diamond resources.
Minister of Minerals and Energy, Honourable Bogolo Joy Kenewendo, expressed pride in this significant agreement, which is expected to solidify the diamond industry’s success and promote sustainable economic development in Botswana. She emphasized the goal of fostering market confidence and driving development through diamonds to improve the future for the citizens of Botswana.
Al Cook, Chief Executive Officer of De Beers Group, hailed the agreements as groundbreaking, stating that this longstanding partnership represents one of the world’s premier public-private collaborations. He expressed gratitude for the opportunity to secure their continued involvement in Botswana’s diamond resources and reiterated the commitment to transformative initiatives for the benefit of the local population.
The formal agreements encompass:
1. A 25-year extension of the Debswana mining licenses, allowing for continued value generation from existing mining assets and ongoing projects.
2. A renewed 10-year Sales Agreement outlining the distribution of diamond production between the Government and De Beers, including commitments for local diamond beneficiation.
3. Establishment of the Diamonds for Development Fund, with an initial investment of BWP 1 billion (approximately $75 million) to support Botswana’s economic objectives.
4. Initiatives to enhance local diamond processing and training, including investments in local jewelry manufacturing, diamond grading laboratories, and vocational training.
5. Joint marketing efforts to boost consumer demand for diamonds while upholding ethical standards.
Botswana is recognized as a leading diamond producer and a robust democracy in Southern Africa. The government strategically manages its diamond resources to maximize revenue and contribute to national development, ensuring the wealth generated supports the welfare of its citizens. This strategic oversight positions Botswana as a key player in the global diamond market while promoting sustainable socio-economic growth.
De Beers Group, established in 1888, remains at the forefront of the diamond industry, excelling in exploration, mining, marketing, and retail. Employing over 20,000 individuals globally, the company emphasizes innovation and ethical integrity, while contributing to a sustainable future for communities and the environment. The firm’s initiatives encompass a range of services throughout the diamond value chain, ensuring adherence to safety and human rights standards.
The recent agreements between the Government of Botswana and De Beers Group signify a transformative direction for the country’s diamond industry, ensuring long-term economic development and sustained participation in the global market. With a robust framework established for diamond sales and local beneficiation, these efforts aim to support sustainable growth and enhance the livelihoods of the citizens of Botswana.
Original Source: www.debeersgroup.com
