Kutlo Motseta
3rd October 2024
Botswana’s government held an awards ceremony during Independence celebrations to recognize people who have contributed to its development.
One of the highlights of the country economic agenda, which is driven by is its significant diamond resources, are the teams that assisted Botswana to get a better share of its diamond revenue.
President Dr Mokgweetsi Masisi awarded them with the ‘Naledi ya Botswana’ (NYB), awarded for outstanding service to the Republic of Botswana, in compliance with the Botswana Honours Act. The event was held at Avani Hotel on the 29th September 2024 in Gaborone, Botswana.
The Minister of Minerals and Energy Lefoko Moagi, led the De Beers negotiations. In principle the agreement will result in a 10-year Sales Agreement for Debswana’s rough diamond production through to 2033. A 25-year extension of the Debswana’s mining licenses to 2054 was reached in June 2023. Partners are finalizing the sales and progress and implementation of the formal sales and mining agreements.
The 2011 team negotiated the renewal agreement for the sorting, valuing, marketing, marketing and sales of Debswana’s diamonds (sales agreement).
Some of the key achievements follow: Firstly, the conclusion of the first 10 years sales agreement, an extension from the previous 5-year agreement.
Secondly, an agreement for De Beers to relocate its sales functions from London to Gaborone causing all sights (sales of diamonds from De Beers operations in Canada, Namibia and South Africa) to be held in Gaborone every five weeks from December 2013. This was after 100 years of the sights being held in London.
Thirdly, for the first time Botswana’s government was entitled to buy and sell up to 15% of Debswana’s production. Resultantly, Okavango Diamond Company was formed and bought 10% of Debswana’s production 2012 which increased to the current 25%.
Further agreements were reached by the 2023 team, which included the extended renewal of the Debswana mining licenses for 25 years from August 2029. This enabled Debswana to pursue long terms projects like Jwaneng Underground and Orapa Cut3, thus extending the company’s mining operation to 2054.
The renewal of Sales Agreement for 10 years with provision for Okavango Diamond Company to increase its purchase and sale of Debswana production from 25% to 50% over the 10-year period of the sales agreement.
It also laid the foundation for De Beers to set up a Diamonds for Development Fund with an initial seed capital of P1 billion and building to a cap of P10 billion. The fund is to be used to drive investment projects that diversify the economy of Botswana.
The 2011 team comprised of Mr. Eric Molale, Dr Athalia Molokomme, Ms Linah Mohohlo (posthumous), Mr. Solomon Sekwakwa, Mr Gabaake Gabaake, Mr Boikobo Paya and Mr. Terrence Siamisang.
The members of the Botswana negotiation team with De Beers from June 2023 comprised of Ms. Emmah Peloetletse, Ms. Mmako Abram, Adv Abrahma Keetshabe, Mr. Cornelius Dekop, Mr. Moses Pelaelo, Mr. Olesitse Masimega, Dr Wilfred Mandlebe, Mr. Pelaelo Khowe, Ms. Ellen Richard-Madisa, Dr Obolokile Obakeng, Mr. Johannes Tsimako, Mr. Bame Pule.
