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 AAL.L, 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.”
