Negotiations for a new diamond sales agreement between De Beers and the Botswana government are expected to wrap up in a matter of weeks, following a high-level meeting between De Beers CEO Al Cook and Botswana’s new President, Duma Boko.
De Beers, a unit of Anglo-American last year agreed a new sales pact with Botswana, the world’s top diamond producer by value, but it is yet to be signed.
Former President Mokgweetsi Masisi touted the merits of the deal his administration agreed with De Beers last year, under which Botswana’s share of diamonds from its Debswana joint venture with the company would gradually increase over the next decade.
Cook said the spirit of the meeting with Boko was one of “renewed energy” within the partnership, highlighting the commitment to revitalizing their collaboration.
“Both sides are very confident that we will reach alignment on those agreements very shortly. The teams are actively negotiating. “We see negotiations concluding in days and weeks, not months and years. We will see the renewal of this partnership because around the world, people will want more than ever to purchase natural diamonds from Botswana,” said Cook.
Botswana’s economy is still largely dependent on the export of diamonds, and a downturn in the global diamond market means economic growth is projected to slow sharply this year.
According to Cook, the diamond giant, alongside Botswana, will launch an intensive marketing effort aimed at reviving the sale of natural diamonds.
“What we agreed is that the world’s leading diamond country, Botswana, and the world’s leading diamond company, De Beers, will stand shoulder-to-shoulder in marketing and creating desire for natural diamonds. With the diamond market facing challenges, it’s essential for us as partners to work together to stimulate demand for natural diamonds,” said Cook adding that this renewed spirit of collaboration is very positive.
For his part Anglo American CEO and Chairman of the De Beers Group, Duncan Wanblad, acknowledged that while divergent views may arise at times, the partnership remains strong.
“We greatly value our partnership with Botswana. While there may be differing opinions, we remain committed to working faithfully with the government and continuing what has been an incredibly successful relationship for over 50 years. We look forward to carrying this forward for another 50 years,” Wanblad highlighted.
The diamond market has struggled since April, with Debswana sales dropping by over 50 percent.
However, Boko, has assured that the government and De Beers will continue to work together to strengthen and advance their longstanding partnership since it has benefited the country for decades.
“We have a long-standing partnership that has served this country well over many years, and we are confident it will continue to endure into the future. Where there are challenges, we will work together as partners to resolve them in the best way possible, engaging each other in good faith to ensure outcomes that benefit us all,” said Boko adding that that any issues that may arise between the two partners would be addressed collaboratively.
