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GABORONE. – Diamond industry experts are hailing the signing of a 10-year diamond sales agreement between the De Beers Group and Botswana, Africa’s largest diamond producer.
Under the deal, Botswana will progress from receiving 30 percent to half of all diamonds that De Beers mines in the southern African country.
The deal was signed at the 11th hour following tense negotiations, as Botswana pushed for an increased allocation of rough diamonds from the 54-year-old partnership.
The signing of a new agreement has been welcomed by industry experts.
Edward Asscher, the World Diamond Council immediate past president, said the deal will ease anxiety within the diamond industry.
“First of all, that is a guarantee of stable supply of rough diamonds and we have all been waiting for this. Don’t forget that De Beers is the leader in the rough diamond industry, but it also provides stability in the market and it’s the only company in the diamond industry that is investing in the growth and marketing of natural polished diamonds,” said Asscher.
Belgium-based researcher on diamond mining Hans Merket said the new deal gives Botswana a greater chance to enjoy the proceeds of diamond mining.
“The current deal builds on the achievements of the past to now expand Botswana’s own room of manoeuvre in generating lasting benefits from the exploitation of its natural resources. The potential is definitely there but it remains to be seen how all this plays out,” Merket said.
He, however said while there is need for transparency from the two parties on the deal, a concern recently raised by some legislators in Botswana’s National Assembly.
“What has been released so far (about the deal), there are many unknowns and conditionality. The past few years have shown that ill-informed public debates can breed mistrust between the two parties, or between the company and public at large. So, it will be important to invest in transparency and awareness raising to avoid this.”
Meanwhile, De Beers chief executive Al Cook, speaking during the signing of the agreement in Gaborone on Saturday, said the company is excited to continue its partnership with Botswana.
“We at De Beers will never forget that it is a privilege to be the partners of the government of this great country. It is a privilege, it is not a right. We will always remember that it is a privilege.”
In recent years, Botswana has received about $5 billion per year from De Beers.
During negotiations, Botswana President Mokgweetsi Masisi repeatedly indicated his country was prepared to walk away from negotiations if a more favourable deal were not reached. – VOAnews.com
leeroy
Online Reporter