Botswana and De Beers Strike New 10-year Diamond Deal

Botswana has signed a landmark 10-year diamond sales agreement with mining giant De Beers, concluding years of negotiations. Under the deal, the government’s share of diamond sale revenue through the Debswana company, co-owned with De Beers, will rise to 30% for the first five years and 40% for the next five. There is an option to extend the agreement for another five years, albeit with a 50-50 split of sale revenue. In exchange, De Beers received a 25-year extension on its mining licenses until 2054. The new pact comes as Botswana, the world’s top diamond producer by value, battles a downturn in diamond prices that has negatively impacted its economy, especially since diamonds contribute 25% of its GDP.

Source: AP