De Beers confident talks will deliver a Botswana diamond deal

17th February 2023

By: Reuters


Font size: - +

De Beers is confident of maintaining its long-standing partnership with Botswana, a company official told Reuters on Thursday, but said some of the negotiations to agree new terms were complex.

Botswana President Mokgweetsi Masisi on Sunday threatened to walk away from talks on the extension of De Beers' mining rights in the country unless it got a larger share of revenues.

De Beers' Vice President-Corporate Affairs (Global Sightholder Sales) Otsile Mabeo told Reuters by email the company was "confident that our successful partnership will continue" and said that "the arrangement must make economic and strategic sense for both parties".

Anglo American's De Beers is in talks with the Botswana government to extend mining rights that expire in 2029, as well as a 2011 diamond sales agreement that expires in June this year.

"It’s important to note that our negotiations span more than just the sales agreement, they also include the future mining rights for Debswana, which are more complex and require more time to land on the finer details," Mabeo said.

Under the current deal, Debswana - a 54 year-old joint venture between De Beers and the Botswana government - sells 75% of its output to De Beers, while 25% goes to the state-owned Okavango Diamond Company. Botswana supplies 70% of De Beers' rough diamonds.

Last year, Debswana's diamond sales hit a record $4.588-billion, compared to $3.466-billion in 2021. Diamond sales, almost entirely from Debswana, account for two-thirds of Botswana's foreign currency receipts and a fifth of its gross domestic product.

Botswana government officials were not immediately available to comment, but Lefoko Moagi, Botswana's mines minister, told Reuters earlier this month he hoped a deal would be reached before the June deadline.

"A lot has been done, and what is left is material, but it is not insurmountable, it is in our best interests that we resolve that by the deadline," Moagi said on the sidelines of last week's Cape Town indaba mining conference.

Edited by Reuters



VEGA Controls SA (Pty) Ltd
VEGA Controls SA (Pty) Ltd

For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...

Immersive Technologies
Immersive Technologies

Immersive Technologies is the world's largest, proven and tested supplier of simulator training solutions to the global resources industry.


Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:1.235 1.277s - 91pq - 2rq
1: United States
Subscribe Now
2: United States