DiamondBuzz
De Beers and Botswana Reach Agreement on New Rough-Sales Deal and Extended Mining Licenses
De Beers and the government of Botswana have officially concluded their negotiations, finalizing a new rough diamond sales agreement and securing an extension of mining licenses for their joint venture, Debswana.
This marks the successful end to a long negotiation process that has seen multiple extensions of the previous contract since it expired in 2021. Despite reaching an agreement in principle in June 2023 and signing a “heads of terms” document in September, the deal remained pending due to discussions with Botswana’s former president, Mokgweetsi Masisi, and was finalized after Duma Boko assumed the presidency in November.
Under the new sales agreement, 30% of Debswana’s production will be allocated to Okavango Diamond Company (ODC), Botswana’s state-owned trading arm, with plans to gradually increase this to 50% over the next 10 years. The deal also includes a significant extension of Debswana’s mining licenses, which were initially set to expire in 2029. A 25-year extension of these licenses is part of the agreement, further solidifying the long-term future of diamond mining in the country. Additionally, the partners will jointly handle the sale of exceptional diamonds, sharing in the profits of polished sales.
Furthermore, the new agreement involves a BWP 1 billion ($75 million) upfront investment by De Beers in a diamond development fund, with additional contributions over the next decade. The fund aims to diversify Botswana’s economy, create jobs, enhance local diamond beneficiation, and provide training opportunities. This move is part of a broader strategy to ensure that the country’s diamond sector continues to contribute to economic growth and development for years to come.
DiamondBuzz
Diamond Slump forces Debswana to diversify into copper, platinum and solar
Diamond-centric mining models is giving way to broader resource portfolios
Debswana Diamond Company, the 50–50 joint venture between the Botswana government and De Beers, is moving to diversify into copper, platinum and renewable energy as the prolonged downturn in natural diamond demand pressures earnings and forces the industry to rethink its growth strategy.
The company’s board has approved plans to invest in a portfolio of non-diamond projects after revenue fell 46% in 2024, the latest available financial year, highlighting the scale of the downturn in the global diamond market.
The move signals a strategic shift toward commodities with stronger long-term demand fundamentals, particularly copper, which is central to global electrification and energy-transition infrastructure.
Debswana’s diversification reflects a broader industry pivot as diamond producers confront weak consumer demand, rising competition from lab-grown stones and elevated inventories across the supply chain.
The shift is also visible among smaller exploration companies. Botswana Diamonds recently rebranded as Botswana Minerals, signalling its own strategic focus on copper exploration rather than diamonds.
Together, these moves underscore a growing consensus across the sector: the era of diamond-centric mining models is giving way to broader resource portfolios anchored in energy-transition metals.
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