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De Beers deal: Govt secures phased increase to 50%

Deal done: President Mokgweetsi Masisi has been vocal about securing more value for Botswana in its diamonds PIC MORERI SEJAKGOMO
Deal done: President Mokgweetsi Masisi has been vocal about securing more value for Botswana in its diamonds PIC MORERI SEJAKGOMO

State-owned diamond trader, Okavango Diamond Company (ODC) will now get a 30% allocation of Debswana’s output, rising to a maximum of 50% in the next 10 years, under the agreement sealed with De Beers, top officials involved in the extensive negotiations have revealed.

Speaking live on Btv today, Minerals and Energy minister, Lefoko Moagi, together with the Permanent Secretary to the President, Emma Peloetletse and Minerals permanent secretary, Ellen Richard-Madisa, said the increase to 30% from 25% had been signed upon and took effect immediately. The gradual phasing up to 50% has been agreed upon tentatively.

The two parties released a joint statement in the early hours of today, shortly after the June 30 midnight deadline for talks, indicating that an agreement had been reached in principle, on a new 10-year sales agreement for Debswana’s rough diamond production through to 2033, and new 25-year Debswana mining licences through to 2054. While the partners finalise the implementation of the formal sales and mining agreements, an interim agreement will preserve the terms of the most recent sales agreement which expired on 30 June, the two parties said.

Editor's Comment
Gov't must guard against cadre deployment

As the Botswana National Front (BNF) discusses a policy to place suitably qualified members in strategic positions, the guiding consideration should remain whether an individual is the best person to serve the country. There is nothing wrong with qualified party members applying for public positions. Political affiliation should neither disqualify a capable candidate nor give them an advantage over others. Every Motswana deserves a fair...

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