GABORONE - In a significant development for the diamond industry, De Beers Group and the Government of the Republic of Botswana have inked a partnership that cements their collaboration for decades to come. The agreement, announced by Anglo American (JO:AGLJ) PLC, entails a 10-year Sales Agreement with an option to extend for an additional five years, and a 25-year extension of the Mining Licences for Debswana, which will now run through to 2054.
Debswana, a 50:50 joint venture between De Beers and the Government of Botswana, operates the Jwaneng and Orapa diamond mines, two of the world’s most prolific diamond sources. This new arrangement ensures the continuity of operations and sales well into the future.
Duncan Wanblad, Chief Executive of Anglo American, expressed his satisfaction with the deal, highlighting the stability it brings to both parties and the rough diamond market. He emphasized the importance of the agreement for De Beers’ position in the diamond industry and its transition towards operating as an independent entity.
This partnership follows the Heads of Terms agreed upon by De Beers and the Government of Botswana in September 2023 and is set to provide a stable foundation for the recovery of the rough diamond market, which has faced challenging trading conditions in recent times.
The long-term nature of the agreements signals a strong commitment between De Beers and the Government of Botswana, aiming to support the economic development of the country and the broader diamond market. This partnership is based on a press release statement and is expected to affirm De Beers’ leadership in the global diamond industry.
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