Diamond mining giant De Beers has signed a 10-year sales pact and a 25-year new lease agreement with Botswana that will have natural rough supply coming through the pipeline for the next 30 years.
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In the sales agreement, De Beers increased the shares of Botswana to 50%. It was 30% at the beginning which later increased to 40%.
“Last week, at the end of June, we agreed in principle a 10-year sales agreement and a 25-year new lease agreement for the assets commencing 2029, with the Botswana government,” De Beers Executive Vice President Paul Rowley told PTI.
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The new mining licence, new lease agreement with Desbwana for 25 years secures natural rough supply coming through the pipeline for the next 30 years, he added.
Debswana is a mining company, which is an equal partnership between the Republic of Botswana (GRB) and the De Beers Group of companies.
On the sale agreement, Mr. Rowley said, “From 25-30% in the first year of signing, we went for about 40% and then we moved to 50% for 10 years with Debswana production.” The company is also exploring other sites in Botswana and in countries like Angola, Canada and South Africa for mining opportunities, he said.
“We are looking both in Botswana, South Africa and Angola, Canada. Most recently we have reentered into Angola, which I think is pretty much recognised as one of the diamond producing countries and for diamond exploration at this moment,” he added.