The new sales agreement that continues the 54-year partnership between De Beers Group and the Botswana government for another 10 years is one step closer to being finalized.
In a joint news release issued Sunday, the two said they have signed “heads of terms” for the agreement.
Heads of terms, also known as a letters of intent, are non-binding, pre-sale agreements that outline some of the key points of a deal.
For De Beers and Botswana, the heads of terms provide “additional detail and clarity” to the commercial and operational aspects of the agreement reached in principle earlier this year.
This includes details about the apportionment of Debswana supply, economic arrangements, talent development, beneficiation supply and value chain development, and the “Diamonds for Development Fund,” the fund designed in part to help Botswana grow its economy outside the diamond industry.
A portmanteau of “De Beers” and “Botswana,” Debswana is the joint venture whereby De Beers and Botswana operate diamond mines in the country.
Debswana currently has three active diamond mines, Jwaneng, Orapa, and Letlhakane, and their life expectancies range from 13 years (Jwaneng, 2036) to 20 years (Letlhakane, 2043).
Source : National Jeweler