Botswana and De Beers' 10-Year Diamond Deal Hailed

After signing a 10-year extension to their diamond sales deal, Botswana and the international diamond consortium De Beers, based in London, have put an end to uncertainty surrounding their long-standing partnership. In a joint statement issued late on June 30, Botswana and De Beers said the mining license would remain in effect for another 25 years while their sales agreement had been extended until 2034.

Neither a price nor more information on the distribution of natural stones were provided, but according to the government and De Beers, the new agreement "reflects the aspirations of the people of Botswana".

This comes after President Mokgweetsi Masisi challenged a 54-year alliance with De Beers, the largest diamond producer in the world, saying his nation would not relent in its quest for a better agreement. The previous agreement, which just expired, provided that De Beers would get the remaining 75% of the rough diamonds produced in Botswana as part of their partnership. In the renewed agreement, Botswana negotiated for a larger share of the revenues.

The deal has been hailed by diamond industry experts, Voice of America reports. Belgium-based researcher on diamond mining Hans Merket said the new deal gives Botswana a greater chance to enjoy the proceeds of diamond mining. "The current deal builds on the achievements of the past to now expand Botswana's own room of manoeuvre in generating lasting benefits from the exploitation of its natural resources. The potential is definitely there but it remains to be seen how all this plays out," Merket said.