After seven years of negotiations, Botswana Okavango Diamond Company (ODC) and De Beers have finally struck a 50/50 diamond share deal after many years of tense negotiations. This agreement marks a significant milestone between the two parties and it will be applicable after the ten-year period, which includes a five-year extension period.
This historic deal was signed in Gaborone with an agreement that Botswana’s Okavango Diamond Company (ODC) will sell 30% while De Beers will handle 70% of Debswana’s production for the first five years. Meanwhile, in the following five years, ODC will sell 40% and De Beers will sell 60%.
The agreement comes at a crucial moment for Botswana, as its economy shrank last year due to a downturn in the global diamond market. The new development is expected to revive the nation’s economy, driven by an improved global diamond market and stronger performance in other sectors.
ALSO READ: SOUTH AFRICA ROLLS OUT EPAYSLIPS FOR COST SAVINGS
According to the president of Botswana, Duma Boko, “We have secured a good deal, and we trust that it will carry us into the future. To the people of Botswana, this agreement is about you, about the jobs it will create,”
The Minister of Minerals and Energy, Bogolo Kenewendo, lauds the agreement, stating “We are proud to finally settle the signing of this landmark new agreement, which will underpin the success of our diamond industry as we enter an exciting new phase of Botswana’s sustainable economic development.
We hope that these agreements will bring some level of stability and rebuild market confidence in the diamond industry. We are looking forward to our renewed partnership with De Beers; together, we will drive development through diamonds and build a brighter future for Batswana,”
