In September 2011, a new 10-year Sales Agreement between De Beers and the Government of the Republic of Botswana was announced. As part of this agreement, the DTC will relocate its London based sales activities to Botswana by the close of 2013 and diamond aggregation activities will relocate by Q3 of 2012. The agreement will see the aggregation of production from De Beers’ mines and its joint venture operations worldwide, as well as sales to international and domestic Botswana Sightholders, taking place in Gaborone.
Additionally, in May 2006, the Government and De Beers agreed the renewal of the Debswana mining licences for a further 25 years.
In addition to sorting and valuing Debswana’s production, the purpose of DTC Botswana is to make aggregated diamonds available for sale in Botswana for in-country manufacturing. This supports the government’s economic imperative to drive job and value creation from the country’s diamond resources. In 2011, some US$550 million of rough diamonds were made available to diamantaires with operations in Botswana.
DTC Botswana is the primary vehicle for creating a sustainable and profitable downstream industry in Botswana, delivering maximum long term value from diamonds to Botswana through superior sorting, valuing, selling and marketing practices. For the 2012-2015 supply contract period, some 21 companies with operations in Botswana have qualified as DTC Botswana Sightholders.
Additionally, DTC Botswana is looking to develop both skills and employment opportunities, as well as potentially to encourage other international commercial investment in Botswana.
By facilitating the establishment of cutting and polishing in Botswana, the Government and De Beers are paving the way for additional downstream activities, from diamond jewellery manufacturing through to retailing.
As part of the beneficiation initiative, both parties will continue to facilitate, drive and support the creation of Botswana’s downstream industry. It is hoped that in-country jewellery manufacturers will make full use of this opportunity. It is hoped that the expansion of diamond activities by DTC Botswana and the migration of the sales function of DTC International to Gaborone in 2013 will give rise to growth of secondary business sectors such as banking, security, and IT.
Please find more information on DTC Botswana's website.