De Beers and African Diamonds Sign Botswana Agreement

De Beers has announced an agreement with African Diamonds plc to establish a joint venture company to explore for diamond bearing deposits in Botswana.

De Beers will initially hold 51 percent of the venture and African Diamonds will hold the rest.

Upon completion of the first De Beers funded bankable feasibility study, De Beers’ stake will rise to 70 percent.

The firms have also agreed on the mining of any economically viable deposits brought into production. De Beers and African Diamonds will each contribute certain license areas to the joint venture exploration programme.

The companies are waiting for the approval of the relevant Botswana authorities before implementing the agreement. 

De Beers said that in the past 12 months, it has reached “partner of choice” joint venture exploration agreements in Canada, Russia, Australia and Botswana.

During this period it has discovered 58 new kimberlite deposits in eight countries on five continents. De Beers’ geologists have to date discovered 1,600 kimberlites and those developed into mines contributed 90 percent of the diamonds mined by De Beers and its partners, Debswana and Namdeb, in 2003.

Bill McKechnie, De Beers Director responsible for Group Exploration said: “Being selected as ‘partner of choice’ by other exploration and mining companies is a privilege and responsibility. We hope to bring new discoveries to account using our combined skills and resources in our exploration programs.”