Following a meeting with Botswana’s new president, De Beers’ CEO expressed confidence that ongoing negotiations for a new diamond sales agreement with the government would conclude in the coming weeks.
De Beers, part of Anglo American (AAL.L), had reached a preliminary agreement last year with Botswana, the world’s leading diamond producer by value. However, the agreement has yet to be officially signed.
President Duma Boko, who recently came to power after a decisive electoral victory, has openly criticized the handling of previous talks by his predecessor, suggesting that De Beers had contemplated pulling out due to strained negotiations.
Al Cook, De Beers CEO, stated in a video posted by Botswana’s presidential office, “Both sides are very confident that we will reach alignment on those agreements very shortly. The teams are actively negotiating.”
He emphasized the timeline, saying, “We see negotiations concluding in days and weeks, not months and years.”
Boko’s victory last month ended nearly 60 years of rule by Botswana’s long-dominant party. Former President Mokgweetsi Masisi defended the merits of last year’s tentative deal, which promised Botswana an increased share of diamonds from the Debswana joint venture with De Beers over a decade.
Cook described the meeting with President Boko as infused with “renewed energy,” noting their mutual commitment: “What we agreed is that the world’s leading diamond country, the Republic of Botswana, and the world’s leading diamond company, De Beers, will stand shoulder-to-shoulder in marketing and creating desire for natural diamonds.”
In related news, President Boko appointed former trade and industry minister Bogolo Joy Kenewendo as the new minister of minerals and energy.
Despite being a key economic driver, Botswana’s diamond sector faces challenges due to a downturn in the global market. This slowdown has impacted economic growth projections, which are expected to drop significantly this year. Analysts cite growing economic dissatisfaction, particularly among the youth, as a critical factor behind Boko’s recent electoral success.
