Mali frees Resolute executives after $160 million deal, AFP reports
The three executives, including CEO Terry Holohan, were freed from detention on Wednesday.
Botswana’s new president, Duma Boko, said on Friday he wanted to conclude talks for a new sales pact with global diamonds giant De Beers as soon as possible.
De Beers, a unit of mining company Anglo American, last year agreed a new diamond sales pact, which would see the government’s share of diamonds from the Debswana joint venture gradually increase to 50% over the next decade. Debswana Diamond Company, equally owned by Botswana and De Beers, currently sells 75% of its output to De Beers.
Although the Botswana government and the country’s outgoing president, Mokgweetsi Masisi, touted the merits of the deal, it has yet to be signed.
Boko, who took office on Friday after an election that dealt a stinging defeat to Masisi’s party, said De Beers had been “considering walking away, not signing at all … (a) very dangerous position to be in as a country.”
“The relationship with De Beers could have been damaged by the way the negotiations were handled,” he said in a televised statement. “The first thing that needs to be done is to engage the other party.”
Boko added that his new administration wants to engage with De Beers to understand its concerns.
“A proper negotiation involves compromise, where you get a bit of what you wanted, the other person gets a bit,” he said. “Then … you have a durable, sustainable agreement.”
In an emailed comment, a De Beers spokesperson said: “We will continue to work with Botswana’s Government in support of shared objectives, as we always have.”
Anglo American is looking to divest De Beers as part of a broader restructuring of its sprawling business. Masisi had said in July the Botswana government may raise its shareholding in De Beers from its current 15%.
Anglo American’s process could become easier now that the election in Botswana has been concluded, diamond mining industry analyst Paul Zimnisky said.
“Diamonds by far represent the most important industry for Botswana, so this has to be one of the front and centre issues for the (new) president,” Zimnisky said. “I would expect to see progress on this front now.”
Like other luxury goods, diamond prices have been hammered by a slump in global demand. Sales of rough diamonds at Debswana fell about 52% in the first nine months of 2024, according to data released by Botswana’s central bank on Tuesday.
(By Brian Benza, Felix Njini and Clara Denina; Editing by Mark Potter, Ros Russell and Frances Kerry)
Read More: Botswana voters kick out ruling party of nearly six decades
2 Comments
Allam C. Mphande
It is importsnt for Botswana to continue negotiating for a better outcome that increases both the shareholding in De Beers and the peecentage of diamonds to be sold by the government. The De Beers company must ease on its greed and agree to a fairer deal in favor of Botswana.
previous kyakaba
We want The Zambian gorvement to well come anglo American give them chances to run one of the mine in Zambia more speshally the kalumbila nickel copper mine in north western province of Zambia as the Zambian city zen we are saying giving two mine to one invester is not fine because of some of the ear’s,