Slaughter and May advised the Government of Botswana in renegotiating its ten-year diamond sales agreement with De Beers, signed on February 25, 2025. The new agreement includes provisions for new mining licenses, an investment of 1 billion Botswana pula for economic development, and initiatives to boost local participation in the diamond industry. Debswana, the joint venture between De Beers and the Government, remains a major contributor to Botswana’s economy.
Slaughter and May provided legal counsel to the Government of the Republic of Botswana regarding the renegotiation of its contractual arrangements with the De Beers group. On February 25, 2025, a new ten-year sales agreement was executed between the Government and De Beers, applicable to rough diamonds sourced from the Debswana mining joint venture, with a potential extension of up to five additional years contingent upon certain criteria being met.
This recent sales agreement includes several significant provisions, such as the issuance of new mining licenses, a commitment package aimed at bolstering Botswana’s economic development and enhancing the diamond industry’s prospects. This encompasses the establishment of the Diamonds for Development Fund, which De Beers has pledged to support with an initial investment of 1 billion Botswana pula. It also features initiatives aimed at increasing local diamond beneficiation and fostering greater participation of Botswana’s populace in the diamond industry.
Debswana, a 50:50 joint venture between the Government and De Beers, was founded in 1969 and oversees four diamond mines in Botswana, including the Jwaneng mine. It ranks among the world’s foremost diamond producers by value and constitutes a substantial portion of Botswana’s Gross Domestic Product (GDP).
Slaughter and May played a crucial advisory role throughout the negotiation process, which resulted in the new arrangements following the heads of terms concord reached in September 2023. The negotiations were the product of extensive discussions and collaboration, with Slaughter and May acting as an integral part of the advisory team collaborating with the Government.
In conclusion, the newly established sales agreement between the Government of Botswana and De Beers signifies a crucial step in enhancing Botswana’s economic framework and diamond industry. The agreement reflects a commitment to local economic growth through significant investments and beneficial initiatives while ensuring the sustainability of the diamond sector. The partnership between the Government and De Beers continues to evolve, reinforcing Botswana’s position as a key player in the global diamond market.
Original Source: www.slaughterandmay.com
