State-owned business Okavango Diamond Company (ODC) will receive 30 per cent of production from Debswana, the joint venture between De Beers and the government.
This will increase progressively to 50 per cent over the duration of a 10-year agreement. ODC currently receives 25 per cent of production.
The sales agreement will run until 2033, while the 25-year mining licence extension will conclude in 2054. The terms of the current expired sales agreement will remain in place while De Beers and Botswana implement the new deal.
De Beers CEO Al Cook: “For De Beers it is a privilege to renew our half-century partnership with the people of Botswana. It is a partnership that is highly regarded around the world for the enduring role it has played in creating economic development and growth.”
“Our transformative agreement reflects the aspirations of the country, secures the future of our Debswana joint venture, and reaffirms De Beers’ leadership position for the long-term.”
The new agreement also includes the creation of a ‘Diamonds for Development’ fund, with De Beers expected to invest approximately $US750 million ($AU1.12 billion) over the coming decade.
More reading
De Beers CEO clarifies future plans amid dwindling sales
De Beers delays rough diamond sales as demand decreases
Pleasing demand for De Beers rough, lab-created sales surging
De Beers says lab-created diamond category ‘distinct and separate’
Diamond sales continue to slow for mining giant
Sales performance overcomes sluggish second half for De Beers
Diamond sales slump for De Beers
Weakened demand impacts De Beers sales
Diamond industry expectations for 2023; what's in store?