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Botswana's brand-new president intends to finalise De Beers diamond sales pact soon

Botswana's new president Duma Boko stated on Friday he wanted to conclude talks for a new sales pact with worldwide diamonds mining giant De Beers as quickly as possible.

The relationship with De Beers might have been harmed by the way the settlements were dealt with, President Boko stated in a. telecasted declaration from Gaborone, Botswana's capital. The. initially thing that needs to be done is to engage the other party.

De Beers, a system of Anglo American, in 2015 concurred. a new diamond sales pact, which will see the government's share. of diamonds from the Debswana joint venture gradually increase. to 50% over the next decade.

Debswana Diamond Company, equally owned by Botswana and De. Beers, currently sells 75% of its output to De Beers.

While the Botswana federal government and the outbound president. Mokgweetsi Masisi touted the merits of the offer, it has yet to. be signed. Boko stated De Beers had been considering walking. away, not signing at all ... (a) extremely dangerous position to be. in as a nation.

Boko stated that his new administration wants to engage with. De Beers to understand its concerns.

A correct settlement involves compromise, where you get a. bit of what you desired, the other individual gets a bit, Boko said. Then ... you have a durable, sustainable contract.

Anglo is working on a plan to divest De Beers as part of a. broader restructuring of its vast company. Masisi in July. had said the Botswana government might raise its shareholding in. De Beers from its current 15%.

Like other luxury goods, diamond prices have been hammered. by a slump in international need. De Beers has been limiting supply. and using flexibility to contracted customers.

(source: Reuters)