Is Botswana Getting A Raw Deal From De Beers Diamonds - The World News 〈2026〉

Historically, De Beers mined the rough diamonds in Botswana and shipped them to London, where they were sorted, aggregated, and sold to manufacturers. The high-value activities—sorting, cutting, polishing, and retail—happened elsewhere, keeping the bulk of the economic profit outside Botswana’s borders.

In 2025 alone, De Beers posted a $511 million loss, and Debswana was forced to slash production from 17.9 million carats in 2024 to just 15.1 million in 2025. Consequently, Botswana ended 2025 sitting on a massive stockpile of 12 million unsold carats, double its target inventory.

The 2025 deal has improved the situation—moving the ODC allocation from 25% to 40% and eventually to 50% is a tangible victory. However, the fact that the mining licenses were extended for a full quarter-century in exchange for these gains suggests that De Beers still walked away with the long-term prize: security of supply. Historically, De Beers mined the rough diamonds in

While the new deal has been hailed as a major victory for Botswana's sovereignty and economic interests, the landscape of the global diamond industry is shifting in ways that make the ultimate value of the stones uncertain.

Furthermore, the threat of depletion hangs over any mining-dependent nation. While Botswana’s mines have decades of life left, they are becoming deeper and more expensive to operate. The true measure of whether Botswana secured a good deal from De Beers will not just be the percentage of rough diamonds it receives today, but how effectively the government reinvests those current diamond revenues into building a sustainable, knowledge-based economy for tomorrow. Consequently, Botswana ended 2025 sitting on a massive

The central argument for Botswana getting a "raw deal" revolves around value addition.

Botswana has finalized a 10-year sales agreement and 25-year mining license extension with De Beers, boosting its production share to 30%—set to rise to 50%—and securing over $750 million in development funding . The landmark deal strengthens local beneficiation and positions Botswana to potentially take a controlling stake in De Beers as owner Anglo American divests . Read the full details of the agreement on Reuters . Is Botswana Getting a Raw Deal From De Beers Diamonds? While the new deal has been hailed as

The deeper Botswana digs into its mines, the more expensive operations become. The upcoming Jwaneng Underground expansion project requires billions of dollars in capital expenditure to transition from open-pit to underground mining. As a 50/50 partner, Botswana must foot half the bill. If the government squeezes De Beers' margins too tightly, it risks disincentivizing the massive corporate investments required to keep the mines viable for the next generation. The Verdict: A Structural Shift, Not a Raw Deal So, is Botswana getting a raw deal from De Beers?

Historically, De Beers mined the rough diamonds in Botswana and shipped them to London, where they were sorted, aggregated, and sold to manufacturers. The high-value activities—sorting, cutting, polishing, and retail—happened elsewhere, keeping the bulk of the economic profit outside Botswana’s borders.

In 2025 alone, De Beers posted a $511 million loss, and Debswana was forced to slash production from 17.9 million carats in 2024 to just 15.1 million in 2025. Consequently, Botswana ended 2025 sitting on a massive stockpile of 12 million unsold carats, double its target inventory.

The 2025 deal has improved the situation—moving the ODC allocation from 25% to 40% and eventually to 50% is a tangible victory. However, the fact that the mining licenses were extended for a full quarter-century in exchange for these gains suggests that De Beers still walked away with the long-term prize: security of supply.

While the new deal has been hailed as a major victory for Botswana's sovereignty and economic interests, the landscape of the global diamond industry is shifting in ways that make the ultimate value of the stones uncertain.

Furthermore, the threat of depletion hangs over any mining-dependent nation. While Botswana’s mines have decades of life left, they are becoming deeper and more expensive to operate. The true measure of whether Botswana secured a good deal from De Beers will not just be the percentage of rough diamonds it receives today, but how effectively the government reinvests those current diamond revenues into building a sustainable, knowledge-based economy for tomorrow.

The central argument for Botswana getting a "raw deal" revolves around value addition.

Botswana has finalized a 10-year sales agreement and 25-year mining license extension with De Beers, boosting its production share to 30%—set to rise to 50%—and securing over $750 million in development funding . The landmark deal strengthens local beneficiation and positions Botswana to potentially take a controlling stake in De Beers as owner Anglo American divests . Read the full details of the agreement on Reuters . Is Botswana Getting a Raw Deal From De Beers Diamonds?

The deeper Botswana digs into its mines, the more expensive operations become. The upcoming Jwaneng Underground expansion project requires billions of dollars in capital expenditure to transition from open-pit to underground mining. As a 50/50 partner, Botswana must foot half the bill. If the government squeezes De Beers' margins too tightly, it risks disincentivizing the massive corporate investments required to keep the mines viable for the next generation. The Verdict: A Structural Shift, Not a Raw Deal So, is Botswana getting a raw deal from De Beers?