Botswana and De Beers, the international diamond conglomerate, have signed interim agreements to extend their long-standing diamond mining partnership.
The deal comes after months of negotiations and a midnight deadline on Friday. While the final details of the agreement have not been disclosed, the parties have signed a statement of principles and an interim agreement.
Under the current arrangement, the Botswana government receives 25 percent of the rough stones mined in the joint venture, with De Beers retaining the remaining 75 percent.
Many in Botswana have called for a greater share of the diamonds, and the lack of details in the agreement has left the public anxious. However, the government of Botswana, the world’s second largest diamond producer, has hailed the agreements as a victory that will help achieve long-term development goals.
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Botswana’s President, Mokgweetsi Masisi, had previously criticized the deal, demanding a higher share of the diamonds and additional investment in the country’s diamond industry.
This demand reflects a broader call from African countries to benefit more from their natural resources. The extended sales agreement, which determines how diamonds are allocated, now runs until 2033, while De Beers’ mining license has been extended until 2054.
While diamonds have transformed Botswana’s economy, making it an upper-middle-income country with robust infrastructure, the nation still faces significant inequality.
Citizens and government officials argue that they should receive a greater share of the diamond revenue to address social challenges. The new agreements aim to address these concerns and prioritize the interests of the people of Botswana.
