THE government of Botswana expressed its commitment to preserving its partnership with De Beers and expressed confidence that the ongoing negotiations for a new diamond sales agreement would be successful, according to a statement by government spokesperson William Sentshebeng on Tuesday.
Botswana is currently in talks with De Beers, a subsidiary of Anglo American, to establish a new sales deal before the expiration of their existing agreement, signed in 2011, later this year. Speculation arose when President Mokgweetsi Masisi threatened to withdraw from the negotiations if Botswana failed to secure a larger portion of the rough diamonds produced by Debswana, their long-standing diamond mining joint venture established 54 years ago.
However, Sentshebeng clarified that the negotiations between the government and De Beers were ongoing, and he expressed confidence that a mutually beneficial agreement would be reached. He emphasised the government’s commitment to maintaining the partnership.
In 2011, Botswana’s share of Debswana’s output increased from 10 percent to 25 percent. While Botswana has not publicly disclosed the specific share it seeks in the new deal, it is rumoured to be as high as 50 percent.
Sentshebeng also mentioned that discussions regarding the renewal of De Beers’ diamond mining rights, which are set to expire in 2029, were taking place well in advance to allow for crucial investment decisions.
Both De Beers and Botswana have plans to invest in capital-intensive expansion projects at their two largest mines, Jwaneng and Orapa, with the aim of extending their lifespans by an additional 20 years.
In March, President Masisi’s announcement that Botswana would acquire a 24 percent stake in Belgian gem cutter and trader HB Antwerp was interpreted as an effort to reduce De Beers’ dominance over the country’s diamond industry.
However, Sentshebeng clarified that Botswana’s partnership with HB Antwerp was intended to secure a stake in diamond processing and value addition, emphasising that it would not affect or replace the partnership with De Beers, which is primarily focused on mining and selling rough diamonds.
Botswana remains committed to maintaining a strong relationship with De Beers, with the ongoing negotiations aimed at ensuring a fair and mutually beneficial agreement for both parties involved.
