De Beers extends 10-yr Botswana gross sales deal

Diamond miner De Beers stated on Tuesday it had prolonged a 10-year gross sales settlement with Botswana by a yr as a result of logistical challenges brought on by the coronavirus pandemic, permitting the 2 sides extra time to barter.

The Anglo American unit, which is 15% owned by the federal government of Botswana, noticed gross sales plummet in the course of the peak of the pandemic, forcing it to restructure its enterprise.

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The 2011 tough diamond gross sales settlement, by which the jointly-owned Debswana sells all its output to De Beers, was initially as a result of expire on the finish of 2020 however has now been prolonged to the tip of subsequent yr, De Beers stated in an announcement.

“The extension, which can prolong the phrases of the prevailing settlement, will present additional time for discussions concerning the contract renewal,” the miner stated.

Diamond gross sales have rebounded from this yr’s trough as lockdowns eased and the excessive gross sales season of the December festive season approached, De Beers stated in November.