Is Botswana Getting A Raw Deal From De Beers Diamonds - The World News Online

The biggest argument for the "raw deal" theory isn't necessarily De Beers' greed, but the timing of the market. Botswana is fighting for a larger share of a natural diamond market that is facing an existential crisis from Lab-Grown Diamonds (LGDs).

The state-owned Okavango Diamond Company (ODC) will see its share of rough diamond production rise from 25% to 50% over the next decade.

only received 25% of the diamonds mined by their joint venture, , while De Beers took 75%. Missing Downstream Value

Today, De Beers is the largest diamond mining company in Botswana, with a portfolio of mines that include Orapa, Jwaneng, and Venetia. The company's operations in Botswana account for a significant portion of the country's diamond production, and it is estimated that diamonds make up around 80% of Botswana's total exports. The biggest argument for the "raw deal" theory

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 Botswana’s Treasury profited from the 50% equity, it lacked the market power to dictate the global price or strategy of its own resources. This is the imbalance that set the stage for a massive renegotiation.

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When factoring in taxes, royalties, dividends, and joint-venture profits, the government of Botswana retains an estimated 80% to 85% of the value generated by Debswana’s operations. Few mining nations achieve such a high percentage of resource rent retention.

From a purely extractive standpoint, Botswana receives one of the highest government takes of any mining nation in the world. Why, then, is there growing dissatisfaction? The Core of the Grievance: Value Beyond Mining

De Beers committed to investing in a jewelry manufacturing facility, a grading laboratory, and a vocational training institute in Botswana. The 2025 deal has improved the situation—moving the

Botswana is at a defining moment in its history. The raw deal it may or may not be getting from De Beers is not just about a mining contract; it is about national sovereignty, economic survival, and the future of a country that has long been held up as a model for resource-rich nations.

The rapid rise of synthetic, lab-grown diamonds poses an existential threat to natural diamond producers. LGDs are chemically and optically identical to mined diamonds but retail at a fraction of the cost. As younger consumers embrace synthetics for their affordability and perceived eco-friendliness, the demand and prices for natural diamonds have faced severe downward pressure. Macroeconomic Volatility and Anglo American's Restructuring

: After years of contentious negotiations, a new 10-year sales agreement and a 25-year extension of mining licenses (through 2054) were finalized in early 2025.

Botswana may not be capturing enough value from its diamonds, despite being the world's second-largest diamond producer by value (after Russia) and home to Debswana — a 50/50 joint venture with De Beers.