Slaughter and May advised the Government of the Republic of Botswana (“Government”) on its renegotiation of its arrangements with the De Beers group (“De Beers”). On 25 February 2025, Government and De Beers signed a new 10-year sales agreement in respect of rough diamonds produced by the Debswana mining joint venture. The sales agreement can be extended by up to 5 years if certain criteria are met.
The new sales agreement and associated arrangements provide for, amongst other things, the grant of new mining licences, a package of commitments focused on supporting Botswana’s economic development objectives and advancement of the diamond industry, including the establishment of the Diamonds for Development Fund to support economic growth, diversification and jobs in Botswana, into which De Beers has committed to an upfront investment of 1 billion Botswana pula, and initiatives designed to enhance local beneficiation of diamonds and increase participation of the people of Botswana in the diamond industry.
Debswana, a 50:50 joint venture between Government and De Beers, was established in 1969 and operates four diamond mines in Botswana, including the Jwaneng mine. Debswana (and Botswana) is one of the world’s largest producers of diamonds by value. The Debswana joint venture generates a material proportion of Botswana’s GDP.
Slaughter and May advised on all aspects of the new arrangements, which follow from heads of terms signed in September 2023 and are a product of years of negotiation, acting as part of an integrated team with Government.