mmegi

Govt formalises deal with De Beers

Done deal: Moagi and Permanent Secretary to the President, Emma Peloetletse after the signing ceremony on Saturday PIC: MBONGENI MGUNI
Done deal: Moagi and Permanent Secretary to the President, Emma Peloetletse after the signing ceremony on Saturday PIC: MBONGENI MGUNI

Government and De Beers have formally signed agreements giving the country a higher allocation of rough diamonds from their partnership and providing for the mining giant to provide P1 billion to start a fund to diversify the country’s economy.

The deals signed on Saturday afternoon, known as heads of terms, follow an agreement in principle reached between the two sides on June 30, which came after five years of increasingly tense negotiations. At the tail end of the talks, President Mokgweetsi Masisi threatened to end the 54-year old partnership unless Botswana gained greater access to the diamond downstream market.

Officials involved in the latest developments explained that by moving from an agreement in principle, to heads of terms, the two sides were transitioning to a non-variable stage of the various conditions agreed to in June. From the heads of terms, the two sides will be able to draft and sign binding contracts on the various terms.

Editor's Comment
The Boko-led administration has to tread carefully

‘When you make peace withyourself, you make peace with the world’- Maha GhosanandaThis may come at a huge cost if not handled properly. What started off on Labour Day in Letlhakane this year, where Boko was in attendance when the militant lawyer-cum-trade unionist, Robert Rabasimane rebutted the President’s address in defence of the trade union has seemingly spiralled out of control. The issue is now creating a cat-and-mouse type of a...

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