De Beers and the Botswana government announced they had finally signed the long-delayed agreements on sales, mining licenses and a package of measures to boost the country’s economy. The agreement is key to Botswana’s economy – representing around 80 per cent of all exports – and to De Beers, which relies on the country for 70 per cent its diamond supply.As widely expected, the agreement grants mining licenses to Debswana – the 50/50 joint venture between De Beers and Botswana – until July 2054.

The old agreement expired in 2021. Negotiations to renew it began back in 2018 but Covid and a series of other delays led to it being extended instead.Both sides reached a provisional agreement in June 2023 and signed an outline agreement – or head of terms – in October.But the previous government, under President Mokgweetsi Masisi, failed to actually finalize the deal. It then lost the general election last November, in a major upset, and it was left to his successor, Duma Boko get the deal across the line.

It also increases the share of Debswana’s rough production that goes to Okavango, the government’s rough diamond sales company.Okavango, which currently sells 25 per cent, will will sell 30 per cent for the first five years and 40 per cent for the second five years. There is provision for a 50/50 split if the agreement is extended by a further five years In addition, De Beers agrees to an upfront investment of around $75m in a Diamonds for Development Fund, plus further contributions  based on Debswana’s performance.