By Alice Onukwugha
Diamond mining and marketing company De Beers and the Botswana government have reached an in-principle agreement to extend the Debswana mining licenses for 25 years, until 2054.
Additionally, a new ten-year sales agreement for Debswana’s rough diamond production has been established, running until 2033.
Debswana, a joint venture between De Beers and the Botswana government with a 50:50 ownership structure, operates four diamond mines in Botswana. Both parties will now collaborate on implementing the formal new sales agreement and mining licenses.
During the interim period, the terms of the most recent sales agreement, which expired last Friday, will remain in effect.
According to Anglo American’s media release, a new sales agreement is classified as a related party transaction under the UK listing rules due to Anglo American and Botswana’s shareholding in De Beers. Thus, it will require approval from Anglo’s shareholders in due course.
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A report from Bloomberg, obtained by NatureNews, quotes the Botswana
government stating that these agreements align with the aspirations of the Botswana people.
In parallel, De Beers is undertaking significant measures in Southern Africa to combat climate change. Wheeled wind and on-site solar initiatives are being developed for Venetia, with the goal of making South Africa’s largest diamond mine predominantly powered by renewable energy by the end of 2025.
The Bloomberg report highlights that, if successful, these efforts would reduce Venetia’s carbon footprint by more than 80%. Currently, the use of Southern African electricity results in a larger carbon footprint than using diesel. Therefore, connecting renewable power sources will lead to a steep decline in Venetia’s emissions.
Furthermore, De Beers recently inaugurated its new Sightholder Sales South Africa, a diamond processing facility located near Johannesburg International Airport.
During the opening ceremony, De Beers CEO Al Cook praised the impressive facility, which houses diamond expertise, technology, and rough diamonds. The establishment of this facility aims to stimulate the growth of a diamond business hub in South Africa.
The Sky Park facility spans 6,747 square meters and is part of the global sightholder network. It sells rough diamonds for beneficiation purposes in South Africa, Botswana, Namibia, and Canada. The facility comprises two floors with sightholder offices, hand- and machine-sorting areas, a training academy, and a diamond cleaning plant.
