Slaughter and May advised the Government of Botswana on renegotiating its agreements with De Beers, culminating in a 10-year sales agreement signed on February 25, 2025. Key initiatives include new mining licenses and the Diamonds for Development Fund, with an initial investment of 1 billion Botswana pula from De Beers to support local economic growth and community involvement in the diamond industry.
Slaughter and May provided legal guidance to the Government of the Republic of Botswana in its discussions with De Beers regarding the renegotiation of their agreements. On February 25, 2025, the Government and De Beers finalized a 10-year sales agreement concerning rough diamonds sourced from the Debswana joint venture. This agreement includes provisions allowing for a possible five-year extension under specific conditions.
The new agreement outlines several significant initiatives, including the issuance of new mining licenses and a commitment to bolster Botswana’s economic development and the diamond industry. A key component is the establishment of the Diamonds for Development Fund, aimed at fostering economic growth, diversification, and job creation in Botswana. De Beers has pledged an initial investment of 1 billion Botswana pula into this fund, alongside efforts to enhance local diamond processing and increase participation from the local workforce.
Debswana, a joint venture formed in 1969 between the Government and De Beers, operates several diamond mines in Botswana, including the prominent Jwaneng mine, recognized as one of the largest diamond producers globally. The operations of Debswana significantly contribute to Botswana’s GDP and economic stability. Slaughter and May played a crucial role in advising on all facets of the new arrangements that stem from the heads of terms established in September 2023, following extensive negotiations with the Government.
In conclusion, the renegotiated agreement between the Government of Botswana and De Beers signifies a substantial advancement in the country’s diamond industry. It emphasizes commitments to economic development through the Diamonds for Development Fund and enhanced participation from local communities. The collaboration aims to ensure that Botswana reaps the maximum benefits from its valuable natural resources.
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