Anglo American secures long-term diamond partnership with Botswana
Why we think this is good
The new long-term partnership agreements between De Beers and the Government of Botswana provide significant stability and certainty for Anglo American's diamond business. While the financial details are not disclosed, the agreements are likely to support the recovery of the rough diamond market and contribute positively to Anglo American's overall performance in the long run.
Key Points
- New 10-year Sales Agreement and 25-year extension of Mining Licences for Debswana joint venture
- Debswana operates the Jwaneng and Orapa diamond mines in Botswana, a 50:50 joint venture between De Beers and the Government of Botswana
- Agreements provide long-term stability and certainty for the diamond partnership
Summary
Anglo American has announced that its De Beers Group and the Government of Botswana have signed new long-term agreements for a 10-year Sales Agreement and a 25-year extension of the Mining Licences for the Debswana joint venture. The agreements provide long-term stability and certainty for the diamond partnership, which is critical for the rough diamond market's recovery. While the financial details are not disclosed, the partnership is expected to contribute positively to Anglo American's performance in the long run.