De Beers and Botswana Again Delay New Agreement
December 20, 21
(IDEX Online) - De Beers and the Botswana government have further delayed agreement on a new deal over the sale of rough diamonds, blaming the challenges of COVID-19.
The sales agreement, which governs the Debswana joint venture between both parties, was extended by a year in December 2020 and will now run until the end of June 2022.
Diamond revenue accounts for a fifth of Botswana's GDP and 70 per cent of its foreign revenue, and the government is reportedly lobbying for a larger share of the diamonds. It is reported to receive 25 per cent at present, up from 15 per cent agreed in 2011.
The Debswana Diamond Company controls all the country's diamond mining, at the Damtshaa, Jwaneng, Letlhakane and Orapa mines.
De Beers blamed the "continuing logistical challenges presented by the Covid-19 pandemic during 2021" for the delay in agreeing a new deal.
The UK-based miner said in a statement on Friday: "The extension period, during which the two partners will continue to operate under the terms of the existing agreement, will provide further time to complete discussions regarding the contract renewal following the good progress made during 2021."
Pic shows Jwaneng mine, Botswana.