Botswana: De Beers has finally reached an agreement for the sale of diamonds

The government of Botswana and the South African diamond company De Beers have announced that they have reached a new ten-year diamond sales agreement, bringing to an end negotiations that have been ongoing since 2019. The agreement, which has been welcomed by the diamond industry, strengthens Botswana's position as the world's second-largest diamond producer, behind Russia.

Under the terms of the new agreement, the Government of Botswana will be able to sell 30% of the rough diamonds mined in its joint venture with De Beers. This share will gradually increase to 50% by the end of the agreement in 2035. This measure is intended to compensate for the decline in revenues from diamonds, which have fallen from $7 billion a year to just $4.2 billion in 2023, due to the slowdown in global sales.

Speaking to the media on Monday, De Beers CEO Al Cook praised the Botswana government for bringing the talks to a smooth conclusion. In particular, he noted a marked improvement in negotiations since President Duma Boko came to power in November. Under the previous government, led by Mokgweetsi Masisi, tensions were high and there had been threats of a break-up with De Beers.

The agreement is seen as a major step forward for the industry, particularly given the disruption to the global supply chain caused by the sanctions on Russian diamonds. Diamond researcher Hans Merket underlined the importance of the agreement: "This agreement between the world's largest diamond producer after Russia will therefore be seen as a positive development, not only by both parties but also by the industry as a whole.

For her part, Elodie Daguzan, Executive Director of the World Diamond Council (WDC), said the organisation welcomed the agreement, which underlined the importance of stable, long-term partnerships in the diamond sector. "Botswana is a leading example of how responsible diamond mining, through successful collaboration with the private sector, can promote sustainable growth," she said.

She added that the agreement would bring welcome stability to an industry facing major challenges, including consumer concerns about 'blood diamonds' and a changing market.

Botswana's Minister of Minerals, Bogolo Kenewendo, has confirmed that the government and De Beers will officially sign the agreement before the end of February. A five-year renewal option will also be considered when the agreement expires in 2035.

With this historic agreement, Botswana hopes to revive its diamond sector and guarantee a prosperous future for its economy.