Botswana and De Beers agree to a 25-year deal

The Botswana government and De Beers have agreed to renew the mining license agreement on the country’s mine for another 25 years.

The Jwaneng license will be renewed for a period of 25 years from 1 Aug. 2004, De Beers said in a statement. Moreover, the Orapa, Damtshaa, and Letlhakane mining licenses will be extended for a the same 25-year period.

De Beers’ currently has three shareholders, Anglo American with 45%, the Oppenheimer family with 40%, and the remaining 15% by Debswana, the Botswana subsidiary that is jointly held by the government and De Beers. This cross holding effectively gave Anglo another 3.65% holding in De Beers, pushing its stake up to 48.65%.

Under the new agreement, the Botswana government will take full control of the 15% in De Beers, meaning Anglo will now only account for its direct 45% in De Beers.