The report was provided by the American news agency, Reuters.
Debswana, a joint venture owned by Botswana and De Beers, a diamond mine. De Beers is buying three-quarters of Debswana’s output, which is 24 million carats in 2022. The rest is being sold to the state-owned Okavango Diamond Corporation (ODC), which was established under the current sales agreement in 2011 when Botswana tried to market the jewels. outside the De Beers system.
70% of De Beers’ rough diamonds come from Botswana. Last month, Masisi threatened to withdraw from discussions to extend the sales agreement unless Botswana received a higher share of the joint venture’s proceeds. He did not mention the size of the stake he was asking for.
South Africa’s country’s president told reporters on Thursday that the 54-year-old joint venture agreement has deprived Botswana of its ability to market its own diamonds.
“Unless the diamond is ours, there is no point in us continuing to expose ourselves to participate in rough places. So, it is only logical that we want more and we will get more. But through negotiation,” the president stated.
De Beers CEO Al Cook said he saw Masisi in Gaborone on Friday morning and had a “good talk” with the president.
“It is very clear that, first and foremost in the heart of the president is the interest of the people of Botswana. We as De Beers want to play our part in a strong, strategic partnership. I am very confident that this partnership will advance in a very good way,” The CEO opened up to reporters.
According to De Beers, the Botswana government gets more than 80% of Debswana’s profits, including taxes and royalties.
Anglo American Plc (AAL.L), which also has mines in Canada, Namibia, and South Africa, will sell $4.3 billion in rough diamonds in 2022, up 13% from sales in 2021. ODC sales in 2022 will be $1.2 billion, up from $963 million in 2021.