https://en.sputniknews.africa/20230714/botswana--de-beers-deal-to-diversify-economy-improve-diamond-value-chain-president-1060537409.html
Botswana & De Beers Deal to Diversify Economy, Improve Diamond Value Chain: President
Botswana & De Beers Deal to Diversify Economy, Improve Diamond Value Chain: President
Sputnik Africa
De Beers is an international corporation that is engaged in the extraction, processing and sale of high-quality diamonds, as well as the production of... 14.07.2023, Sputnik Africa
2023-07-14T18:22+0200
2023-07-14T18:22+0200
2023-07-14T18:22+0200
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A new agreement reached between Botswana and diamond miners De Beers this month will increase access to a greater amount of diamonds and help obtain 10 billion pula ($762 million) in development funds, Botswanan President Mokgweetsi Masisi has said.The 10-year agreement is vital to both parties and plays a significant part in the world's diamond supply chain.According to him, the funds will allow Botswana to "diversify the economy and improve the diamond value chain," as well as help young people learn skills and create jobs.According to the new agreement, Debswana, the De Beers subsidiary that typically accounts for approximately two-thirds of the group's annual production, will give 30% of its output to Botswana's state-owned diamond trader. According to the African nation's government, there is also a provisional agreement in place for that share to subsequently rise to 50%.Debswana is a joint company between Botswana's government and De Beers, it has entire control over the nation's gems market.According to statistics, 25% of Debswana production is being received by the Okavango Diamond Company in Botswana (ODC). Additionally, it stipulates that De Beers will make a one billion pula (approximately $76 million) initial investment in a Diamonds for Development Fund and an additional nine billion pula ($687 million) throughout the course of the contract.As more diamonds are handled domestically, tax revenue is expected to "vertically increase," according to Masisi. Authorities and De Beers previously experienced conflict over the involvement of Belgian diamonds trader HB Antwerp, which has developed strong relationships with the government. Botswana announced earlier this year that it was purchasing a 24% share in the business, without specifying the price it paid, and that it would receive some supplies from ODC.According to Masisi, Botswana sees no issue with De Beers over its connections to HB Antwerp and is willing to purchase a larger part in the Belgian gem merchant. However, this would depend on how compelling the transaction was.Earlier in this month, Botswana and De Beers concluded the new ten-year agreement on the sale of rough diamonds.In addition, the sides reached an agreement to prolong Debswana’s mining licenses until 2054.
https://en.sputniknews.africa/20230526/from-gold-to-diamonds-africas-top-10-mineral-producing-nations-in-2022-1059501587.html
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Botswana & De Beers Deal to Diversify Economy, Improve Diamond Value Chain: President
De Beers is an international corporation that is engaged in the extraction, processing and sale of high-quality diamonds, as well as the production of synthetic diamonds for advanced players. It was founded in 1888 on the territory of present-day South Africa.
A new agreement reached between Botswana and diamond miners De Beers this month will increase access to a greater amount of diamonds and help obtain 10 billion pula ($762 million) in development funds, Botswanan President Mokgweetsi Masisi has said.
The 10-year agreement is vital to both parties and plays a significant part in the world's diamond supply chain.
"We’re very happy with the outcome. It could have been better but you know with a partnership you’ve always got to give as you take," Masisi told media.
According to him, the funds will allow Botswana to "diversify the economy and improve the
diamond value chain," as well as help young people learn skills and create jobs.
According to the new agreement, Debswana, the De Beers subsidiary that typically accounts for approximately two-thirds of the group's annual production, will give 30% of its output to Botswana's state-owned diamond trader. According to the African nation's government, there is also a provisional agreement in place for that share to subsequently rise to 50%.
Debswana is a joint company between Botswana's government and De Beers, it has entire control over the nation's gems market.
According to statistics, 25% of Debswana production is being received by the Okavango Diamond Company in Botswana (ODC).
Additionally, it stipulates that De Beers will make a one billion pula (approximately $76 million) initial investment in a Diamonds for Development Fund and an additional nine billion pula ($687 million) throughout the course of the contract.
As more diamonds are handled domestically, tax revenue is expected to "vertically increase," according to Masisi.
"The deal with De Beers is one that is going to make a big difference," he noted.
Authorities and De Beers previously experienced conflict over the involvement of Belgian diamonds trader HB Antwerp, which has developed strong relationships with the government.
Botswana announced earlier this year that it was purchasing a 24% share in the business, without specifying the price it paid, and that it would receive some supplies from ODC.
According to Masisi, Botswana sees no issue with De Beers over its connections to HB Antwerp and is willing to purchase a larger part in the Belgian gem merchant. However, this would depend on how compelling the transaction was.
"If it makes businesses sense we will talk to them," he outlined. "We are in business, you know."
Earlier in this month, Botswana and De Beers
concluded the new ten-year agreement on the sale of rough diamonds.
In addition, the sides reached an agreement to prolong Debswana’s mining licenses until 2054.
"Done Deal! The transformational new agreements between the government of Botswana and De Beers reflect the aspirations of the people of Botswana," the president stated on social media.
