PRESIDENT Mokgweetsi Masisi of Botswana affirmed on Thursday that the country would not back down on its demands for a larger portion of rough diamonds from its joint venture with De Beers. This statement escalates the stakes as negotiations for a new sales deal with the diamond giant seem to be reaching an impasse.
The joint mining venture between Botswana and De Beers, known as Debswana Diamond Co., has been in operation for 54 years. Under the current diamond sales agreement, which has been extended three times since 2020, De Beers receives 75 percent of Debswana’s production, totalling 24 million carats in 2022. The remaining balance is sold to the state-owned Okavango Diamond Company, established in 2011 to enable Botswana to independently sell some gems outside of the De Beers system.
President Masisi, who has been in office since 2018 and will seek re-election next year, is now pushing for Botswana to sell a greater portion of its diamonds outside of the De Beers channel. Speaking at a community meeting in Mmadinare, he expressed dissatisfaction with the restrictive nature of the agreement, stating, ‘Our agreement with De Beers is very restrictive to us. We signed it at a time when we didn’t know much, but now our eyes are open.’
Masisi hinted at the possibility of a stalemate and potential litigation regarding the sales agreement. He emphasised Botswana’s determination to protect its diamond resources, even if it means losing votes. ‘Even if we lose the litigation, our diamonds will remain ours, and we will never give in,’ Masisi declared in Setswana.
The president has previously threatened to walk away from the negotiations if Botswana does not secure a larger share of Debswana’s output for independent marketing. While the government has not disclosed the specific share it seeks, it is believed to be as high as 50 percent, double the current allocation.
De Beers, a subsidiary of Anglo American, was not immediately available for comment. The diamond giant has highlighted that Botswana already receives over 80 percent of returns from Debswana after taxes and royalties are considered. Furthermore, De Beers has expressed confidence that its longstanding partnership with Botswana will continue based on terms that are economically and strategically favourable to both parties.
