Botswana Tests De Beers Pact by Buying Stake in Gem Trader
- De Beers is renegotiating a 50-year partnership with Botswana
- Botswana is the world’s biggest producer of diamonds by value
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Botswana will acquire a 24% stake in Belgian gem trader HB Antwerp, in a deal that could challenge the southern African nation’s 50-year partnership with De Beers.
As part of the agreement announced by President Mokgweetsi Masisi on Monday, Botswana’s state gem trader Okavango Diamond Co. will receive polished rather than rough prices over a five-year supply deal with HB Antwerp for some of its sales. The new approach could potentially generate more revenue for the government than De Beers traditional method of selling rough — uncut and unpolished — stones.