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.