GABORONE, Botswana – Botswana’s government said there is a risk it will be unable to renew a 10-year sales agreement with De Beers before the end of December, when the current one expires, as the Covid-19 pandemic has delayed negotiations.
“The ideal situation would be to end the talks by December but there are no guarantees that will happen,” Mmetla Masire, Permanent Secretary in the Ministry of Minerals, told Reuters.
He said the government had resumed negotiations, but travel restrictions have slowed progress.
Leading diamond producer De Beers, part of Anglo American, said it could continue to operate under the existing agreement temporarily in the event of a delay.
“We remain focused on working with government regarding the next agreement and seeking to finalise it,” De Beers spokeswoman Kesego Okie said in an emailed response.
A deal is necessary for the Debswana Mining Company, jointly held by De Beers and Botswana’s government, as it provides the country with around two-thirds of its foreign exchange and makes up a fifth of its GDP.
For De Beers, a deal would provide another 10 years of clarity on the terms of its revenue from the source of 70 percent of its diamonds and 90 percent of its sales. – Reuters
