The Government of Botswana and De Beers Group have officially signed new agreements solidifying their diamond partnership for the next generation. The agreements, which follow the conclusion of negotiations announced on February 3, 2025, include a 10-year Sales Agreement, with an option for a five-year extension, and a 25-year extension of Debswana’s mining licenses from 2029 to 2054. This marks a significant milestone in Botswana’s diamond industry, reinforcing the country’s economic development ambitions while ensuring De Beers’ long-term access to some of the world’s most valuable diamond resources.
Botswana’s Minister of Minerals and Energy, Honourable Bogolo Joy Kenewendo, described the agreement as a landmark achievement that will provide stability and boost confidence in the diamond industry. She emphasized that the partnership with De Beers will drive economic growth and contribute to a sustainable future for Botswana. De Beers Group CEO, Al Cook, hailed the agreements as groundbreaking, describing the Botswana-De Beers partnership as the most successful public-private collaboration in the world. He noted that the Diamonds for Development Fund, a key element of the new deal, will play a transformative role in advancing Botswana’s economic aspirations.
Under the newly signed agreements, Debswana’s mining licenses have been extended until 2054, ensuring the continued operation of key projects such as Jwaneng Cut-9, Jwaneng Underground, and Orapa Cut-3. The Sales Agreement, which governs the distribution of Debswana’s rough diamond production, stipulates that for the first five years, the Okavango Diamond Company (ODC), Botswana’s state-owned diamond sales entity, will sell 30% of production, while De Beers will handle 70%. This distribution will shift over time, with ODC increasing its share to 40% in the following five years, and both parties eventually sharing the output equally if the five-year extension is implemented. Additionally, both De Beers and ODC have pledged to supply diamonds for local beneficiation, ensuring that a portion of Botswana’s diamond wealth contributes directly to domestic industry growth.
Beyond mining and sales, the agreements include a range of initiatives aimed at supporting Botswana’s economic development and enhancing its role in the global diamond industry. The newly established Diamonds for Development Fund will support economic diversification, job creation, and national development objectives, aligning with Botswana’s Vision 2036. De Beers has committed an initial investment of BWP 1 billion (approximately $75 million), with additional annual contributions tied to Debswana’s financial performance.
To strengthen Botswana’s diamond value chain, De Beers will invest in a jewelry manufacturing facility, establish a diamond grading laboratory under the De Beers Institute of Diamonds, and collaborate with industry partners to launch a diamond vocational training institute. These initiatives are expected to increase local beneficiation and create new opportunities for Botswana’s citizens in the diamond industry.
Furthermore, De Beers and the Government of Botswana will co-invest in marketing initiatives designed to boost global demand for diamonds. These efforts will focus on stimulating rough diamond sales, protecting the ethical integrity of the diamond trade, and maintaining consumer confidence in natural diamonds. The marketing investments will be allocated annually, with contributions proportional to the partners’ respective shares in Debswana’s production.
