De Beers and Botswana have also formalised a 25-year extension of the mining licenses for Debswana, a 50/50 joint venture that operates the Jwaneng and Orapa mines.
Under the new deal, the share of the government-owned Okavango Diamond Company in the production of Debswana will climb to 40 per cent, revised from a provisional 50 per cent.
Duncan Wanblad, chief executive of Anglo American, said the agreement should offer reassurance to the entire diamond industry.
“These agreements provide long-term stability for both partners as they work together to support the rough diamond market’s recovery from a period of challenging trading conditions,” Wanblad said.
“The certainty provided also forms a critical step towards De Beers’ next chapter as an independent company and as the world’s most iconic diamond business.”
Negotiations concluded in February after six years of debate. Botswana president Duma Boko said it was an agreement signed with the country's best interests in mind.
“We have us a good deal and we trust that it will carry us into the future. To the people of Botswana, this agreement is about you, about the jobs it will create,” he said.
De Beers CEO Al Cook described the agreement as ‘groundbreaking’ and said it was an extension of the greatest public-private partnership in the world.
Botswana's government said the economy contracted over the past year due to a downturn in the diamond market and detailed its expectation of a recovery in the year ahead.
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