JOHANNESBURG - After months of tense negotiations, Botswana and diamond giant, De Beers have reached a new agreement.
This was after the Botswana government threatened to cut ties with the company earlier demanding a bigger stake in the industry.
The new 10-year agreement allows for the selling of rough diamonds produced by Debswana, a joint venture equally owned by the government and De Beers.
The agreement also includes a 25-year extension of its mining licenses.
The Okavango Diamond Company will now be allocated 30% of Debswana's output – up from 25% previously – and rising to a maximum of 50% in the next decade.
De Beers obtains approximately 70% of its rough diamonds from Botswana while diamond mining accounts for a third of the country's GDP.
After months of tense negotiations, Botswana and diamond giant, De Beers have reached a new agreement. This was after the Botswana government threatened to cut ties with the company earlier, demanding a bigger stake in the industry. #DStv403 pic.twitter.com/kwAhnbnnmt
— eNCA (@eNCA) July 4, 2023