The De Beers Botswana Agreement: What It Means for Diamond Mining
The De Beers Botswana Agreement is a significant deal in the diamond mining industry. It is an agreement between the government of Botswana and De Beers Group, a multinational corporation that specializes in diamond exploration, mining, and marketing. The agreement was signed in 2011, and it is set to expire in 2020. Here is what you need to know about the De Beers Botswana Agreement.
Background to the De Beers Botswana Agreement
Botswana is a landlocked country in southern Africa. It is known for its rich mineral resources, especially diamonds. Botswana is the world`s second-largest producer of diamonds, after Russia, and it is the largest producer of gem-quality diamonds. The diamond industry is a significant contributor to Botswana`s economy, accounting for approximately 80% of the country`s export earnings.
De Beers Group, on the other hand, is a British-based diamond company that was established in 1888. It has been the dominant player in the diamond industry for over a century. De Beers has a substantial presence in Botswana, and it operates several mines in the country.
The De Beers Botswana Agreement was signed in 2011 to renew the partnership between the government of Botswana and De Beers Group. The agreement replaced the 1999 De Beers-Botswana Agreement, which expired in 2010.
What Does the De Beers Botswana Agreement Entail?
The De Beers Botswana Agreement is a 10-year agreement that gives De Beers the right to explore and mine diamonds in Botswana. In return, De Beers pays the Botswana government for the diamonds it extracts. The agreement also provides for the sorting, valuing, and marketing of diamonds mined in Botswana.
One of the key features of the agreement is that it provides for the relocation of De Beers` sorting and marketing operations to Botswana. This move is expected to create jobs in Botswana and boost the country`s economy. The agreement also includes provisions for the training of locals in the diamond industry, with the aim of increasing local participation in the industry.
The De Beers Botswana Agreement is seen as a win-win for both parties. The agreement gives De Beers the right to mine diamonds in Botswana, which is a rich source of diamonds. At the same time, the agreement benefits the Botswana government by providing it with revenue from the diamond industry, and by creating jobs and opportunities for local people.
The Future of the De Beers Botswana Agreement
The De Beers Botswana Agreement is set to expire in 2020, and negotiations for a new agreement are currently underway. The renewal of the agreement is crucial for Botswana, as the diamond industry is a vital part of the country`s economy.
It is expected that the negotiations for the new agreement will focus on increasing local participation in the diamond industry, creating more jobs for locals, and ensuring that the Botswana government gets a fair share of the revenue from the diamond industry.
In conclusion, the De Beers Botswana Agreement is a vital deal in the diamond mining industry. It has enabled De Beers Group to mine diamonds in Botswana, while providing the Botswana government with revenue from the diamond industry. The renewal of the agreement is crucial for the future of the diamond industry in Botswana, and negotiations for a new agreement are currently underway.
