Press Release Archive - 2011

GABORONE, BOTSWANA, 16 September – The Government of the Republic of Botswana and the De Beers Group today announced that agreement has been reached on a new 10 year contract for the sorting, valuing and sales of Debswana’s¹ diamond production. As part of the milestone agreement, De Beers will transfer its London-based rough diamond sales activity to Botswana,underpinning the long-term future of the partnership and transforming Botswana into one of the world’s leading diamond trading and manufacturing hubs.

The agreement, which commences from 1 January 2011, is the longest sales contract ever agreed between the two partners. It will see the Diamond Trading Company (DTC)² relocate its Sights and sales operations - including professionals, skills, equipment and technology - from London to Gaborone by the end of 2013. From its new base in Botswana, the DTC will aggregate production from De Beers’ mines, and its joint venture operations worldwide, and sell to international Sightholders.

Diamond Trading Company Botswana (DTCB)³ will continue to sort and value Debswana’s production before selling it on to the DTC. The DTC will continue to support the domestic cutting and polishing industry in Botswana, and will increase its commitment by making more diamonds available for manufacturing businesses operating in the country.

In addition, the agreement provides for an independent sales outlet for the Botswana Government, which will begin this year at 10 percent of Debswana’s run of mine production and rise to 15 percent over a five year period.

The Minister of Minerals, Energy and Water Resources, Dr. Ponatshego Kedikilwe, hailed the agreement as a major step in securing the future of Botswana’s economy, saying, “Botswana and De Beers have today renewed one of the most successful public/private partnerships in the world. This agreement, and the tangible outcomes it will deliver, will enable Botswana to achieve its aspiration to be a major diamond centre engaged in all aspects of the diamond business.

“The agreement gives us direct access to market, which will be helpful for the successful development of the downstream diamond industry in Botswana. The agreement will also bring more employment and other opportunities to Botswana.

“Our agreement is only the first step - much work needs to be done during the next several years to make this transformation a success. As a major player in the diamond trading industry we look forward to welcoming the global diamond industry to Botswana. We are invigorated by the challenge and excited by the possibilities.”

Nicky Oppenheimer, Chairman of De Beers, commented, “With this agreement, De Beers cements its commitment to being the driving force behind Botswana’s emergence as a world-leading diamond trading and manufacturing centre. The transformation that this agreement sets out is testament to our belief in the future of  Botswana, and is a clear acknowledgment that De Beers’ success is only possible with a profound understanding that the aspirations of our partners must be at the core of our business. I am proud of this moment and excited by what we will build together.”

Mr Oppenheimer added that, as a result of the Agreement, “Botswana has preserved and enhanced a highly successful route to market, focused on maximising the value of her natural resource, and De Beers has secured long-term and uninterrupted access to the largest supply of diamonds in the world. This is a once in a generation opportunity for Botswana and De Beers to shape the future of the diamond industry, and we look forward to working with our partners to provide our Sightholders with the continuity and quality of supply they expect while pushing beneficiation to greater levels than ever seen before.”

^1. Debswana is a 50/50 mining joint venture between Botswana and De Beers
^2. Diamond Trading Company is the wholly-owned distribution arm of De Beers
^3. Diamond Trading Company Botswana is a 50/50 sales joint venture between Botswana and De Beers