Is Botswana Getting a Raw Deal on Diamonds?

Botswana, in southern Africa, has partnered with the London-based diamond giant De Beers for decades. Many in the country are pushing to get a better deal from the industry.

Article New York Times Read Here…

Mines

The mines owned and operated by Debswana are:

Botswana Diamond mines

• Orapa diamond mine, opened in 1971
• Letlhakane diamond mine, opened in 1975
• Jwaneng diamond mine, opened in 1982
• Damtshaa diamond mine, opened in 2003

Deal or No Deal?

Deal or No Deal? for De Beers and the Botswana government to renew the long-standing deal that now covers the sale of 25 Million carats a year .

The government’s minerals and energy minister Lefoko Moagi told reporters on Thursday June 29, 2023 that no agreement had yet been reached, but that both sides were working around the clock towards today’s deadline.

“I am sure you all know Friday is D-Day, so I can only tell you, wait for Friday. But having said that, yes, we are making headway,” Moagi said, according to a TimesLIVE report.

“We are busy on those terms, we are working around the clock to make sure we can conclude a deal or no deal, whatever will come on Friday.” 

President Mokgweetsi Masisi has repeatedly threatened to walk away from the deal unless De Beers agree to more favorable terms, which could be part strong-arm negotiating tactic, part vote winner, ahead of next year’s general election.

The original 1969 agreement allowed De Beers sell 90 per cent of the country’s diamonds. In 2020 the split was adjusted so the state-owned Okavango Diamond Company (ODC), established in 2011, now gets 25 per cent.

Botswana has not disclosed what it sees as a fair share of diamond sales, but a figure as high as 50 per cent, double its current allocation, has been widely reported.

The deal was due to be renegotiated when it expired in 2021, but was, instead, extended. The deadline for a new agreement is today, 30 June 2023.