In an interview with Bloomberg TV in Gaborone, Botswana’s capital, quoted by IDEX Online, Botswana’s President Mokgweetsi Masisi said that the newly signed agreement between Botswana and De Beers will greatly benefit the country’s economy.
“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 said, adding that the deal will give Botswana 10 billion pula ($762 million) to diversify the economy and improve the diamond value chain as well as help impart skills to young people and create jobs.
Under the new agreement, Botswana’s state-owned diamond trader is set to receive a larger portion of the output from Debswana, the De Beers’ unit responsible for approximately two-thirds of the group’s annual production. The revised terms stipulate that the state-owned trader will now be entitled to 30% of Debswana’s output – a significant increase from the previous arrangement. Additionally, the government has announced a tentative agreement that holds the potential for this share to further rise to a maximum of 50% in the future. The deal also includes new 25-year mining licenses for Debswana.
