Is Botswana Getting A Raw Deal From De Beers Diamonds - The World News !!top!! -
The claim that is getting a "raw deal" from De Beers has been a central theme in recent high-stakes negotiations, driven by the country's desire to capture more value from its natural resources
Botswana’s bargaining chip is simple: Give us the rough stones, or we will simply refuse to renew your mining license.
Is Botswana getting a raw deal from De Beers?
But beneath the polish of that narrative, a seismic shift is occurring. As the global diamond market fragments, synthetic stones flood the market, and De Beers’ grip on the industry loosens, a burning question is echoing from the Kalahari Desert to the corridors of the London Stock Exchange:
Sales agreement issues:
De Beers has historically had the right to buy 100% of Debswana's production. Critics argue that De Beers then sells diamonds at higher prices through its global distribution network, leaving Botswana with only mining profits and taxes, not downstream margins.
The relationship between Botswana and De Beers, a multinational diamond mining company, has been a long-standing one. For over 50 years, De Beers has been mining diamonds in Botswana, generating significant revenue for both the company and the government. However, there have been concerns raised about whether Botswana is getting a fair share of the revenue generated from its diamond resources.