Today is D-Day for De Beers and Botswana Deal

By John Jeffay / June 30, 2023 / www.idexonline.com / Article Link

(IDEX Online) - The deadline is now only hours away for De Beers and the Botswana government to renew the long-standing deal that now covers the sale of 25m carats a year.The government's minerals and energy minister Lefoko Moagi told reporters yesterday (Thursday 29 June) that no agreement had yet been reached, but that both sides were working around the clock towards today's deadline."I am sure you all know Friday is D-Day, so I can only tell you, wait for Friday. But having said that, yes, we are making headway," Moagi said, according to a TimesLIVE report."We are busy on those terms, we are working around the clock to make sure we can conclude a deal or no deal, whatever will come on Friday." President Mokgweetsi Masisi has repeatedly threatened to walk away from the deal unless De Beers agree to more favorable terms, which could be part strong-arm negotiating tactic, part vote winner, ahead of next year's general election.The original 1969 agreement allowed De Beers sell 90 per cent of the country's diamonds. In 2020 the split was adjusted so the state-owned Okavango Diamond Company (ODC), established in 2011, now gets 25 per cent.Botswana has not disclosed what it sees as a fair share of diamond sales, but a figure as high as 50 per cent, double its current allocation, has been widely reported.The deal was due to be renegotiated when it expired in 2021, but was, instead, extended. The deadline for a new agreement is today, 30 June.Pic courtesy De Beers

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