De Beers and Botswana seal a shiny deal

De Beers and Botswana have reached an agreement in principle to keep selling rough diamonds from Botswana for another decade.

1. The new deal is a major victory for Botswana, which has been seeking a better deal from De Beers for years.
2. Under the new agreement, Botswana’s state-owned diamond trader will be entitled to a larger share of the output from Debswana, the De Beers unit that generally accounts for about two-thirds of the group’s annual production.
3. The new deal also includes new 25-year mining licenses for Debswana.
4. The agreement was reached just as the latest deadline for a deal expired.
5. The two sides have been negotiating a new deal since 2018.
6. The new deal is expected to boost investment in Botswana’s diamond industry.