After years of negotiations, the long-awaited diamond sales agreement between the Government of Botswana and De Beers has finally been sealed. This new 10-year deal marks a pivotal moment for Botswana’s diamond industry, especially given the country’s status as the world’s second-largest diamond producer after Russia. Not only does the agreement secure a greater share of revenue for Botswana, but it also upholds its enduring partnership with the South African diamond powerhouse.
For industry watchers, this deal signals much-needed stability. De Beers and Botswana have shared a diamond mining alliance for over 50 years, and this renewed agreement reaffirms their commitment to sustaining and strengthening the nation’s diamond sector.
What the New Agreement Means for Botswana
A key highlight of the new Botswana diamond sales deal is the country’s increased share of diamond sales. Under the revised terms, the government will now have the right to sell 30% of the rough diamonds mined through its joint venture with De Beers, Debswana. Even more significantly, this share will gradually rise to 50% by the time the agreement expires in 2035.
This shift is a game-changer for Botswana’s economy. Diamond revenues have long been the backbone of the nation’s finances, yet earnings have declined in recent years. At its peak, Botswana received $7 billion annually from De Beers, but by 2023, that figure had dropped to $4.2 billion due to weakening global diamond sales. By securing a greater share of rough diamond sales, Botswana aims to reverse this trend and unlock greater economic gains from its most valuable resource.
Challenges and Political Shifts
Reaching this agreement was anything but smooth. In 2023, Botswana and De Beers had outlined a 10-year deal that promised a gradual increase in the government’s diamond sales share. However, under former President Mokgweetsi Masisi, the agreement was never signed.
During Masisi’s tenure, negotiations were fraught with tension. At one point, he even threatened to sever ties with De Beers entirely, arguing that Botswana was not receiving a fair share of its own resources. This standoff led to prolonged uncertainty, casting doubt on the future of the partnership.
Everything changed with the election of President Duma Boko in November 2024. Under his leadership, negotiations gained momentum, and both parties swiftly reached a final agreement. De Beers CEO Al Cook credited the new administration for its role in securing a smooth resolution, expressing optimism about the future of Botswana’s diamond industry.
Official Signing and Future Prospects
Botswana’s Minister of Minerals, Bogolo Kenewendo, confirmed that the deal will be officially signed before the end of February 2025. Once finalized, it will remain in effect until 2035, with an option for a five-year renewal.
For Botswana, this agreement is more than just a financial win—it’s a strategic move that secures a greater share of its diamond wealth while reinforcing its long-standing partnership with De Beers. At a time when the global diamond market faces mounting challenges, from shifting consumer preferences to the rise of lab-grown diamonds, this deal provides much-needed stability and a stronger footing for the future.
The Future of Debswana’s Diamond Mines
Debswana, the 50:50 joint venture between Botswana and De Beers, currently operates three active diamond mines: Jwaneng, Orapa, and Letlhakane. A fourth mine, Damtshaa, remains under care and maintenance.
According to De Beers’ parent company, Anglo American, each mine has a distinct operational lifespan. Orapa is expected to remain active until 2037, while Letlhakane is projected to continue production through 2043.
Jwaneng, however—the world’s richest diamond mine by value—faces a more urgent timeline, with its open-pit reserves expected to be depleted by the end of 2036. To secure its future, Debswana is actively exploring an underground mining transition, a move that could extend Jwaneng’s lifespan until at least 2050.
If successful, this transition would be a game-changer for Botswana’s economy, ensuring the country retains its stronghold in the global diamond industry for decades to come.
Featured image: De Beers
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