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Key Points
- The agreement extends Debswana’s mining licenses to 2054, ensuring long-term supply and stability amid weak diamond market demand.
- Botswana’s ODC will receive 40% of Debswana’s production by the deal’s end, reinforcing Botswana’s influence in the global diamond trade.
- The deal strengthens De Beers’ leadership as the company prepares for a potential spin-off from Anglo American.
Anglo American, the mining giant led by South African businessman Duncan Wanblad, has strengthened its long-standing partnership with Botswana through its diamond unit, De Beers. The company finalized a 10-year diamond sales agreement with the Botswana government, securing a key supply deal that will shape the country’s diamond industry for decades.
The agreement also extends Debswana’s mining licenses for another 25 years, ensuring continued production at Botswana’s Jwaneng and Orapa mines through 2054, with an option for a five-year extension.
Rebalancing the diamond trade
Under the terms signed on Feb. 25, Botswana’s state-owned Okavango Diamond Company (ODC) will receive 40 percent of Debswana’s production by the end of the agreement—less than the initially proposed 50 percent share. Debswana, a 50:50 joint venture between De Beers and the Botswana government, plays a crucial role in Botswana’s economy, contributing significantly to GDP, employment, and social development.
The hard-fought deal secures operational stability for De Beers at a time when the diamond market is under pressure from weak demand and declining prices. Locking in long-term supply guarantees not only reassures investors but also reinforces De Beers’ position as an industry leader while cementing Botswana’s influence in the global diamond trade.
De Beers, Botswana strengthen diamond alliance
Duncan Wanblad, CEO of Anglo American, described the agreement as a major step forward, particularly as De Beers prepares for a possible spin-off from its parent company.
“We are delighted that this extraordinary partnership is secured for decades to come, affirming De Beers’ leadership position and providing reassurance across the entire diamond value chain,” Wanblad said.
The agreement follows the Heads of Terms signed between De Beers and the Botswana government in September 2023, continuing a collaboration that has shaped the global diamond industry for more than 50 years.
Anglo American restructures under Wanblad’s leadership
Founded in 1917, Anglo American has grown into a diversified mining powerhouse with operations spanning platinum, diamonds, copper, nickel, iron ore, polyhalite, and steelmaking coal. Since taking over in April 2022, Wanblad has focused on restructuring, streamlining operations, and selling off non-core assets to improve profitability.
Debswana, established in 1969, remains a pillar of Botswana’s economy. With its future now secured through 2054, the company is set for further expansion, bringing new investments, jobs, and economic growth while strengthening Botswana’s position as a key player in the global diamond industry.
