Slaughter and May advised the Government of Botswana on renegotiating its sales agreement with De Beers. A new ten-year agreement has been signed, focusing on economic development and local participation in the diamond industry. Key provisions include a substantial investment from De Beers and benefits for local communities.
Slaughter and May provided legal counsel to the Government of the Republic of Botswana in renegotiating its agreements with the De Beers group. On February 25, 2025, a new ten-year sales agreement was established between the Government and De Beers regarding rough diamonds produced through their Debswana mining joint venture. This agreement can potentially be extended for an additional five years contingent upon fulfilling specific criteria.
The new sales agreement includes provisions for the issuance of new mining licenses and a commitment to support Botswana’s economic development. This encompasses the creation of the Diamonds for Development Fund, to which De Beers will contribute an initial investment of 1 billion Botswana pula. Additionally, there are initiatives aimed at enhancing local diamond beneficiation and increasing the involvement of Botswana’s citizens in the diamond industry.
Debswana, established in 1969 as a fifty-fifty joint venture between the Government and De Beers, operates four diamond mines, notably the Jwaneng mine. This joint venture is a significant player in the global diamond market by value and contributes a substantial portion to Botswana’s GDP. Slaughter and May’s advisory role covered all facets of the new arrangements, which followed heads of terms agreed upon in September 2023 and were the result of extensive negotiations with the Government.
In summary, the newly signed sales agreement between the Government of Botswana and De Beers represents a significant step in their partnership, emphasizing economic development and local participation in the diamond industry. The commitment of De Beers to invest in Botswana’s growth is indicative of a strengthened collaboration designed to benefit the nation and its people.
Original Source: www.slaughterandmay.com
