De Beers, the diamond major, is confident they will arrive at a ‘win-win’ outcome when its prolonged sales agreement negotiations with Botswana comes to an end.
Vice President, corporate affairs, Otsile Mabeo said this in response to Botswana Guardian questions following media reports that President Mokgweetsi Masisi said his country is ready to walk away from negotiations if a better deal(which favours Botswana) is not reached.
“We at De Beers continue to work with the Government of Botswana on reaching a sales agreement that makes economic and strategic sense for both parties and are confident that we will arrive at a win-win outcome,” Mabeo said.
“These are our diamonds, and we want a larger share for us, but through negotiations,” Masisi is reported to have told a Botswana Democratic Party rally in Moshupa, his home village.
“If it gets difficult and talks fail, we will have to say, ‘Let’s go our separate way”, the President is reported to have said.
This week, Mabeo declined to say whether they have formally approached government officials to seek clarity on what the President actually suggested in his extemporaneous speech and the implication it bodes for De Beers.
She instead, shifted to their historic ties and success.
“We are proud of both the Government of Botswana’s investment in De Beers Group and of our longstanding relationship in our joint venture partnership in Debswana – which spans more than 50 years – ensuring that the people of Botswana receive more than 80 percent of returns after taxes and royalties are factored in.
“We have a strong connection to the country and the people of Botswana, underpinned by an enduring desire for the success of our joint operations and by extension, the country itself,” Mabeo stated.
Negotiations for a sales agreement, which expires this winter, have been underway since 2018. The current agreement expired in September 2020 but has been extended several times, initially amid the Covid-19 pandemic.
Last year, the two sides agreed to keep the deal going until June 2023. Under the current deal, Debswana - a 54-year-old joint venture between De Beers and the Botswana government - sells 75 percent of its output to De Beers, while 25 percent goes to the state-owned Okavango Diamond Company.
Botswana supplies 70 percent of De Beers' rough diamonds. Last year, Debswana's diamond sales hit a record $4.588-billion, compared to $3.466-billion in 2021.
Diamond sales, almost entirely from Debswana, account for two-thirds of Botswana's foreign currency receipts and a fifth of its gross domestic product.
Months before President Masisi announced they are ready to move away from the sales agreement negotiations, there were reports that Botswana will opt for HB Antwerp and Lucara, the owners of Karowe diamond mine.
HB Antwerp, is a Belgium-based diamond company that focuses on technology-driven sourcing, analysis and cutting of diamonds. It has a local office called HB Botswana located at Botswana diamond technology park.
On another matter, Rapaport News reported that at its February Sight which started on Monday and ends today(Friday) in Gaborone, De Beers is reported to have increased prices of small rough diamonds for the second consecutive sight, as a combination of demand and supply factors has created a hot market for the category. “Prices for tiny stones rose by around 10% on average at this week’s trading session, with sharper advances in certain segments, customers and insiders estimated Monday.
“The changes were mainly for minus-7 sieve sizes, which weigh about 0.03 carats, across a range of qualities,” Rapaport said.
Vice President, corporate affairs, Otsile Mabeo said this in response to Botswana Guardian questions following media reports that President Mokgweetsi Masisi said his country is ready to walk away from negotiations if a better deal(which favours Botswana) is not reached.
“We at De Beers continue to work with the Government of Botswana on reaching a sales agreement that makes economic and strategic sense for both parties and are confident that we will arrive at a win-win outcome,” Mabeo said.
“These are our diamonds, and we want a larger share for us, but through negotiations,” Masisi is reported to have told a Botswana Democratic Party rally in Moshupa, his home village.
“If it gets difficult and talks fail, we will have to say, ‘Let’s go our separate way”, the President is reported to have said.
This week, Mabeo declined to say whether they have formally approached government officials to seek clarity on what the President actually suggested in his extemporaneous speech and the implication it bodes for De Beers.
She instead, shifted to their historic ties and success.
“We are proud of both the Government of Botswana’s investment in De Beers Group and of our longstanding relationship in our joint venture partnership in Debswana – which spans more than 50 years – ensuring that the people of Botswana receive more than 80 percent of returns after taxes and royalties are factored in.
“We have a strong connection to the country and the people of Botswana, underpinned by an enduring desire for the success of our joint operations and by extension, the country itself,” Mabeo stated.
Negotiations for a sales agreement, which expires this winter, have been underway since 2018. The current agreement expired in September 2020 but has been extended several times, initially amid the Covid-19 pandemic.
Last year, the two sides agreed to keep the deal going until June 2023. Under the current deal, Debswana - a 54-year-old joint venture between De Beers and the Botswana government - sells 75 percent of its output to De Beers, while 25 percent goes to the state-owned Okavango Diamond Company.
Botswana supplies 70 percent of De Beers' rough diamonds. Last year, Debswana's diamond sales hit a record $4.588-billion, compared to $3.466-billion in 2021.
Diamond sales, almost entirely from Debswana, account for two-thirds of Botswana's foreign currency receipts and a fifth of its gross domestic product.
Months before President Masisi announced they are ready to move away from the sales agreement negotiations, there were reports that Botswana will opt for HB Antwerp and Lucara, the owners of Karowe diamond mine.
HB Antwerp, is a Belgium-based diamond company that focuses on technology-driven sourcing, analysis and cutting of diamonds. It has a local office called HB Botswana located at Botswana diamond technology park.
On another matter, Rapaport News reported that at its February Sight which started on Monday and ends today(Friday) in Gaborone, De Beers is reported to have increased prices of small rough diamonds for the second consecutive sight, as a combination of demand and supply factors has created a hot market for the category. “Prices for tiny stones rose by around 10% on average at this week’s trading session, with sharper advances in certain segments, customers and insiders estimated Monday.
“The changes were mainly for minus-7 sieve sizes, which weigh about 0.03 carats, across a range of qualities,” Rapaport said.
