Botswana and De Beers sign new Debswana sales pact and 25-year licence extension

The Government of Botswana and De Beers Group signed the formal agreements on 25 February 2025 governing how Debswana, their 50:50 mining joint venture, will operate and sell its diamonds for the next generation. The two sides had announced the conclusion of negotiations on 3 February, after heads of terms were first agreed in 2023.

What was agreed

• Mining licences: Debswana's licences are extended by 25 years, from August 2029 to July 2054. This underpins mine-life extension projects including Jwaneng Cut-9, Jwaneng Underground and Orapa Cut-3.
• Sales split: Under a new 10-year sales agreement, the state-owned Okavango Diamond Company (ODC) will sell 30% of Debswana's output and De Beers 70% for the first five years. In years six to ten the split moves to 40:60. If certain criteria are met, a five-year extension would see each side sell half.
• Beneficiation: Both De Beers and ODC committed to supply rough for cutting and polishing in Botswana in proportion to their share of Debswana production.

No purchase price is attached: the agreement is a long-term sales and licensing arrangement rather than a purchase, which is why no value is shown.

Why it matters

Debswana produces the bulk of De Beers' diamonds, and diamonds dominate Botswana's exports and government revenue. Handing ODC a growing share of the rough lets the state capture more of the value chain and gives it more direct exposure to prices. The settlement also removed a major uncertainty for Anglo American as it prepared to sell its 85% stake in De Beers. Botswana, which already owns 15% of De Beers, has pre-emption rights over any sale.

The timing is difficult. Rough-diamond demand has been weak because of competition from laboratory-grown stones, and a larger ODC allocation means Botswana will carry more of that market risk.

Sources

• International Mining: De Beers, Botswana agree on 25-year Debswana mining licence extension, 25 Feb 2025
• Mining Technology: Botswana, De Beers sign new diamonds agreement, securing operations until 2054, 26 Feb 2025
• Mining Technology: De Beers secures new diamond deal with Botswana, 04 Feb 2025

Photo: Satellite view of the Orapa diamond mine in Botswana, one of Debswana's operations. NASA/METI/AIST/Japan Space Systems, and U.S./Japan ASTER Science Team, Wikimedia Commons, Public domain.