Boko and Cook: Botswana/De Beers Deal is Close
November 26, 24
(IDEX Online) - The long-awaited deal between De Beers and the Botswana is close to completion, both sides told the Facets 2024 conference in Antwerp today (26 November).
Duma Boko, newly-elected president of Botswana, and Al Cook, CEO of De Beers Group, were equally upbeat about renewing the critical 10-year agreement.
A preliminary agreement was belatedly reached in July 2023 after former president Mokgweetsi Masisi repeatedly threatened to walk out. Both sides went on to sign "heads of terms" but the final contract remains on the table.
The proposed deal includes an increased share of diamonds for the Botswana government - from the current 25 per cent to 50 per cent, phased over a decade.
Boko, who came to power last month, ending 58 years of uninterrupted rule by the Botswana Democratic Party, told the AWDC-organized event: "Our partnership with De Beers continues to strengthen, with negotiations nearing completion.
"Both teams are working diligently to finalize a deal that will not only enhance the future of Botswana's diamond industry, but also secure confidence for investors and stakeholders globally."
Cook, who took to the stage immediately after the president, echoed his sentiment.
"With the election and with the new government coming in, we have seen an injection of energy, a real desire to say let's get this done," he said.
"Let's get this agreement done and let's have the world's greatest diamond country and the world's greatest diamond company do this agreement and move on to work shoulder to shoulder with this industry to build beyond, to build the industry, to build the marketing, to build the desire for the diamonds that we produce."
Diamonds account for around 80 per cent of Botswana's export earnings and drive the economy of a south African nation that discovered diamonds (at Orapa) just six months after it gained independence from Britain in 1966.
The global downturn has had a devastating effect on Botswana's diamond-based economy.
On the eve of the election Botswana's central bank announced that sales by Debswana - the joint venture between De Beers and the Botswana government - were down by 52 per cent in the first three quarters of 2024.
Pics, courtesy AWDC, show (left) President Duma Boko and Al Cook.