Mining giant Anglo American’s diamond unit De Beers says it has successfully concluded negotiations with the government of Botswana to secure a new rough diamond sales agreement for their 50:50 joint venture Debswana.
De Beers said the negotiations focused on establishing a new sales agreement for rough diamond production from Debswana, while also extending Debswana’s mining licences beyond 2029.
Debswana operates several major diamond mines in Botswana, including in Jwaneng, Orapa, Letlhakane and Damtshaa.
De Beers said both parties looked forward to signing and executing the relevant agreements once the new mining licences had been issued and approved by Botswana’s regulatory authorities and the government.
The terms of the existing agreement would continue to remain in effect until then, it said.
This provides some encouragement to Anglo as the parent company continues to struggle to find a suitable buyer for De Beers, which has been weighed down by tough market conditions and declining demand for raw diamonds in recent years.
In response to offers by Australian miner BHP to buy the company, Anglo CEO Duncan Wanblad has promised to deliver more value to shareholders by transforming Anglo’s portfolio, focusing on premium iron ore, copper and crop nutrients.
“The government of Botswana and De Beers reaffirm their commitment to their enduring partnership, which has lasted over 50 years,” said De Beers in a statement on Monday.
“This collaboration is aimed at the responsible recovery, marketing and sale of diamonds, ensuring the sustainability of the global diamond industry while enhancing the significant fiscal and societal contributions that diamonds provide to Botswana,” it said.
“The government of Botswana and De Beers remain steadfast in their dedication to fostering a robust and sustainable diamond sector that positively impacts the nation’s economy and supports the welfare of its citizens.”
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