In a landmark deal, Botswana has signed a new contract with De Beers that includes a plan to specifically market diamonds sourced from the country, according to representatives from both parties during a press briefing on February 3 at the 2025 Mining Indaba conference in Cape Town, South Africa.
“The marketing of Botswana diamonds as distinctively Botswana diamonds is of great importance to us,” said Botswana’s Minister of Mines and Energy, Bogolo Joy Kenewendo, in a video posted on Facebook by The Projects Magazine. “This agreement marks the first time there will be a dedicated focus on promoting Botswana’s diamonds.”
De Beers CEO Al Cook confirmed that this new agreement gives Botswana a more significant role in shaping the company’s marketing efforts. “For the first time ever, we will establish a marketing committee that will jointly determine how we market these diamonds,” he said.
The deal, which is set to last for 10 years, also includes an option for a five-year extension. Cook shared that the negotiations for this agreement took nearly six years, and both sides were eager to ensure the possibility of extending it beyond the initial decade.
“There are no further negotiations required,” Cook stated, emphasizing that the only remaining task is for Botswana to issue new mining licenses, which he described as a “largely formulaic process.”
Kenewendo expressed optimism about the deal, saying more details would be released once the contract is signed. She added, “We hope this agreement will bring stability and help rebuild confidence in the diamond market.”
In response to the current state of the diamond industry, Cook noted a positive trend, mentioning that diamond jewelry demand in the U.S. had risen by approximately 8% in November and December 2024. He also highlighted De Beers’ ongoing efforts to improve efficiency, including a $100 million reduction in costs.
Despite these positive developments, Duncan Wanblad, CEO of Anglo American (De Beers' parent company), stated that the company plans to spin off or sell De Beers by the end of 2025. “We are setting it up as a stand-alone business to ensure it doesn’t become a drag on Anglo American,” Wanblad said in an interview with Reuters at the Indaba conference.
Wanblad also revealed that Botswana had expressed interest in increasing its current 15% stake in De Beers, though any further investment would be on commercial terms.