16 May 2024

De Beers is committed to finalising the transformational agreement with government of Botswana, the company’s Chief Executive Officer, Mr Al Cook has said.

This follows announcement by Anglo American regarding its intention to explore a range of options to separate De Beers business and exit its investment in the diamond group as part of a strategic review of assets.

Anglo American holds 85 per cent of De Beers equities while the remaining 15 per cent belongs to Botswana.

In a statement released by De Beers, Mr Cook said De Beers Group remains fully focused on delivering its strategy and creating value in the interests of all its stakeholders.

 “De Beers has led the diamond industry for more than a century and I am confident that we will remain the diamond leader for the next century, thus the announcement from Anglo American opens up new possibilities under new ownership,” the release quotes Mr Cook.

Botswana and De Beers Group have officially signed heads of terms for the new Debswana sales agreement and mining licence.

This comes on the backdrop of agreement in principle between the two parties on a new 10-year sales agreement for Debswana’s rough diamond production through to 2033, and new 25-year Debswana mining licences through to 2054.

During 2023, De Beers continued to strengthen its relationships with government and created a wide range of non-governmental organisations to support sustainable development outcomes in host communities, says the statement.

A major achievement was a shared commitment with government to set up Diamonds for Development Fund as part of the agreement on a new 10-year sales agreement and De Beers pledged an initial P1 billion towards the fund which aims to support the country’s emerging knowledge-based economy and accelerate its long-term economic diversification.

With the ongoing recovery in rough diamond demand, and such a positive outlook for the sector, Mr Cook said he was confident in the future.

Additionally, demand for rough diamonds began to recover during the first quarter 2024 following improved demand for diamond jewellery in the United States over the year-end holiday season.

The flexibility for rough diamond allocations offered by De Beers in 2023, combined with the voluntary import moratorium on rough diamonds into India in quarter four of 2023, have helped improve the industry's balance between wholesale supply and demand.

A recent media release from De Beers states that ongoing uncertainty around economic growth prospects has led to a continued cautious purchasing approach by sight holders and the recovery in rough diamond demand is expected to be gradual through the rest of the year.

“The consolidated average realised price increased by 23 per cent, reflecting a change in the sales mix towards higher value rough diamonds and the benefit of the price adjustment in Sight 1 of 2024, which helped improve demand in higher price categories,” says the media release. Ends