February 28, 2025
After seven years of negotiations, the government of Botswana and London-based De Beers Group on Tuesday, February 25, 2025, signed a 10-year diamond sales agreement with the option of extending it five years.
Under the new agreement, Botswana state-owned Okavango Diamond Company (ODC) will sell 30% of the rough diamonds produced by the government of Botswana and De Beers joint venture Debswana mining company during the first five years and De Beers will sell the remaining 70%.
During the next five years, ODC will sell 40% of rough diamonds produced by Debswana while De Beers will sell the remaining 60%.
And if the agreement is extended five years, both parties will sell 50% of the rough diamonds produced by Debswana.
ODC currently sells 25% of the rough diamonds produced by Debswana.
Also under the agreement, Debswana’s mining licenses will be extended 25 years from 2029 to 2054.
As mentioned on its website, De Beers will also set up the Diamonds for Development Fund, which will begin with a $75 million investment and annual contributions thereafter based on De Beers’ dividends from Debswana.
The initiative will entail local beneficiation of diamonds by the people of Botswana, including the establishment of a diamond manufacturing facility, a De Beers diamond grading laboratory, and a diamond vocational school.
Diamonds make up approximately 80% of Botswana’s exports and a quarter of its GDP.
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