Bots extends Jwaneng diamond licence

GABORONE – Botswana has extended to the end of the year a 25-year licence for its Jwaneng diamond mine, which is operated by a joint-venture between De Beers and the government, a senior official said yesterday.

The license to the diamond mine, one of the world’s biggest and most profitable, was due to expire on July 31 amid mounting speculation that the government – which has a 15 per cent stake in De Beers – was pressing for more favourable terms. “We have extended it until the end of the year,” said Akolang Tombale, permanent secretary at the Ministry of Mineral Resources and Water Affairs.”There are no stumbling blocks…,” he told Reuters in reply to a question.There were no further details.Botswana’s Finance Minister Baledzi Gaolathe told Reuters in an interview last week that it was unlikely the deadline would be met, but the contract could be temporarily extended and he hoped a “mutually acceptable” deal was on the cards.He declined to give details on the discussions, but he said Botswana was now “more educated” about prices, markets and technology and firms faced fewer risks than used to be the case.De Beers, the world’s biggest diamond producer, has not commented on the talks.London-listed Anglo American Plc owns 45 per cent of De Beers, which controls around two-thirds of the world’s diamonds supply.Gaolathe said as part of efforts to diversify Botswana’s economy, he would like to see expansion in the domestic industry for cutting and polishing diamonds, which De Beers and Debswana – its joint venture with the government – could help with.-Nampa-Reuters”We have extended it until the end of the year,” said Akolang Tombale, permanent secretary at the Ministry of Mineral Resources and Water Affairs.”There are no stumbling blocks…,” he told Reuters in reply to a question.There were no further details.Botswana’s Finance Minister Baledzi Gaolathe told Reuters in an interview last week that it was unlikely the deadline would be met, but the contract could be temporarily extended and he hoped a “mutually acceptable” deal was on the cards.He declined to give details on the discussions, but he said Botswana was now “more educated” about prices, markets and technology and firms faced fewer risks than used to be the case.De Beers, the world’s biggest diamond producer, has not commented on the talks.London-listed Anglo American Plc owns 45 per cent of De Beers, which controls around two-thirds of the world’s diamonds supply.Gaolathe said as part of efforts to diversify Botswana’s economy, he would like to see expansion in the domestic industry for cutting and polishing diamonds, which De Beers and Debswana – its joint venture with the government – could help with.-Nampa-Reuters