De Beers and Botswana sign new 10-year sales deal and 25-year mining licence

De Beers and the Government of Botswana signed formal new agreements on 25 February 2025 covering a 10-year rough diamond sales arrangement, extendable by a further five years, and a 25-year extension of Debswana's mining licences, running from 2029 through to 2054. The agreements followed the conclusion of negotiations first announced in 2023 and settled a period of prolonged uncertainty over the future of one of the world's most important diamond-producing partnerships.

A gradually shifting sales split

Under the new sales agreement, Botswana's state-owned rough diamond seller, Okavango Diamond Company, will sell 30% of Debswana's production while De Beers sells the remaining 70% for the first five years of the deal. That split shifts to 40% for Okavango and 60% for De Beers for the following five years, before both parties move to an equal 50% share for the final five-year extension period, giving Botswana a steadily growing direct role in marketing its own diamonds over the life of the agreement.

Development funding attached

As part of the settlement, Botswana is set to receive 10 billion pula, about $712m, in development funding, consistent with a provisional arrangement the two parties had reached in 2023. Debswana, the 50:50 joint venture between De Beers and the Botswana government, operates the Jwaneng and Orapa mines, two of the largest and richest diamond mines in the world, making the terms of this agreement central to Botswana's national budget given how heavily the country depends on diamond revenue.

Why the timing matters

The deal was struck against a backdrop of a weak natural diamond market, squeezed by lab-grown competition and soft consumer demand, and just months before Anglo American began actively pursuing a full sale of its 85% stake in De Beers itself. Locking in the sales and licensing terms with Botswana ahead of any change in De Beers' ownership gave both sides clarity, ensuring that whoever eventually buys Anglo's stake inherits a settled, long-term partnership with Botswana rather than an unresolved negotiation.

Diamond industry analysts have described the graduated sales split as a pragmatic compromise that gives Botswana growing commercial experience and market access over the life of the agreement without abruptly stripping De Beers of the marketing expertise and global client relationships it has built over more than a century in the business.

Sources

• Anglo American: De Beers and Botswana sign diamond partnership for the next generation, 25 Feb 2025
• International Mining: De Beers, Botswana agree on 25-year Debswana mining licence extension, 25 Feb 2025
• Mining.com: Botswana, De Beers sign overdue diamond deal, 25 Feb 2025

Photo: Satellite image of the Orapa diamond mine in Botswana, one of two Debswana mines covered by the new De Beers-Botswana sales and licensing agreement. NASA/METI/AIST/Japan Space Systems, and U.S./Japan ASTER Science Team, Wikimedia Commons, Public domain.