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Botswana to stick on its demand to sell a bigger share of the diamonds produced by its joint venture with De Beers, stated Botswanan President Mokgweetsi Masisi while discussing raising the stakes in talks to renew a sales deal that expires in June.
Botswana to stick on its demand to sell a bigger share of the diamonds produced by its joint venture with De Beers, stated Botswanan President Mokgweetsi Masisi while discussing raising the stakes in talks to renew a sales deal that expires in June.
Botswana and De Beers mine diamonds together under an equally-owned joint venture, Debswana, and supply 70% of De Beers’ rough diamonds. Three-quarters of Debswana’s production, which was 24 million carats in 2022, is sold to De Beers. The balance is sold to state-owned Okavango Diamond Company(ODC), which was set up under the current 2011 sales deal as Botswana sought to market gems outside the De Beers system.
Last month, president Masisi threatened to walk away from talks to renew the sales deal unless Botswana gets a larger share of output from the joint venture. He did not specify the size of the share it sought. He told reporters on Thursday that Botswana had denied itself the opportunity to sell its own diamonds through the 54-year-old joint venture agreement. He added that the experience of selling diamonds outside the De Beers system, which sells unpolished, or rough, stones, had shown that Botswana could get more revenue.
Last month, a De Beers spokesperson told Reuters the company was confident that the Debswana partnership would continue, adding the arrangement must make economic and strategic sense for both parties. De Beers says Botswana’s government receives more than 80% of returns from Debswana, including taxes and royalties.
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https://trendsnafrica.com/botswana-to-host-the-permanent-secretariat-of-the-kimberley-process/
The Anglo American Plc unit, which also has mines in Canada, Namibia, and South Africa, sold rough diamonds worth $4.3 billion in 2022, a 13% increase over the 2021 sales. ODC’s sales were $1.2 billion in 2022, up from $963 million in 2021.-mining.com
