ANGLO American said on Tuesday Botswana’s government had formally signed a new diamond marketing agreement with De Beers – a development that represented “a critical chapter” in establishing its 85%-owned diamond unit as an independent business.
The agreement is for 10 years with an option for a five year extension and also provides a 25-year extension of mining licences held by Debswana, from 2029 to 2054. Debswana, a 50/50 joint venture between De Beers and the Government of Botswana, operates the Jwaneng and Orapa diamond mines in Botswana
The agreement falls in line with an in-principle agreement signed with Botswana under its former president Mokgweetsi Masisi in September, 2023. Its formalisation was delayed partly owing to national elections in which Masisi’s Botswana Democratic Party was defeated by the Umbrella for Democratic Change, a coalition led by current President, Duma Boko.
Anglo CEO Duncan Wanblad hailed the agreement, saying it would provide stability for both partners currently beset by poor trading conditions in the diamond market. The agreement would also support Anglo’s previously announced plans to sell or list its stake in De Beers.
“The certainty provided also forms a critical step towards De Beers’ next chapter as an independent company and as the world’s most iconic diamond business,” said Wanblad.
Earlier this month, De Beers slashed diamond production guidance by as much as 40% to between 20 million to 23 million carats for 2025 because conditions had failed to improve on 2024. Then on February 20, Anglo announced a $2.9bn write-down of De Beers which took the parent company into a $3.1bn headline earnings loss for the 12 months ended December.
Wanblad later said in a media call that the group’s stake in De Beers was now carried at $4bn post the impairment.
He also confirmed earlier reports that De Beers had about $2bn in diamond stocks consisting of rough and polished goods. “The good news on that is it didn’t last year increase the levels of stock it was carrying,” he added.
De Beers was break-even during the 2024 financial year.
