Slaughter and May advised Botswana’s Government on a new 10-year sales agreement with De Beers for rough diamonds from Debswana. It includes new commitments for economic development and local job creation, supported by a 1 billion pula investment from De Beers. The Debswana joint venture remains key to Botswana’s GDP.
Slaughter and May provided legal counsel to the Government of the Republic of Botswana regarding the renegotiation of its agreements with De Beers. On February 25, 2025, both parties executed a new ten-year sales agreement governing the sale of rough diamonds extracted from the Debswana mining joint venture, with a potential extension of up to five years contingent upon meeting specified criteria.
The revised sales agreement includes provisions for the issuance of new mining licenses, commitments aimed at bolstering Botswana’s economic development, and enhancing the diamond industry. Notably, it features the establishment of the Diamonds for Development Fund, which De Beers has pledged to support with an initial investment of 1 billion Botswana pula, designed to foster local economic growth, diversification, and job creation in Botswana, alongside initiatives to improve the local beneficiation process of diamonds.
Debswana, a 50:50 joint venture founded in 1969 between the Government and De Beers, operates four diamond mines, including the renowned Jwaneng mine. As a significant player, Debswana ranks among the world’s largest diamond producers by value and contributes substantially to Botswana’s GDP.
Slaughter and May’s advisory role encompassed all facets of the new arrangements, which stem from preliminary agreements made in September 2023. These developments are the outcome of extensive negotiations and reflect a collaborative effort with the Government throughout the process.
In conclusion, the new sales agreement between the Government of Botswana and De Beers marks a significant advancement in the collaboration between the two entities. This agreement not only sets the stage for future economic growth and development within Botswana’s diamond industry but also aims to enhance local participation and sustainability within the sector.
Original Source: www.slaughterandmay.com
