DeBeers, Botswana Extend Diamond-Selling Contract
May 02, 2011
JOHANNESBURG, South Africa -- DeBeers Consolidated Mines Ltd. said it signed an accord with Botswana extending the company's exclusive diamond-selling contract with the world's biggest gem producer until January 2016. As part of the deal, all of Debswana Diamond Co.'s current annual 17 million carat production will be sold to the Central Selling Organisation, DeBeers's London-based marketing arm. Debswana is jointly owned by the Botswana government and DeBeers Centenary AG, the Swiss-based unit which handles the South African company's international interests. DeBeers's signing of a new accord with Botswanan authorities is seen as a breakthrough for DeBeers, as its tight grip on the diamond market has been showing signs of slipping. About two months ago, DeBeers failed to renew an agreement with the Australian Argyle mine, the world's biggest producer of low-quality, mostly industrial, diamonds. Argyle now markets and sells its own goods directly to wholesalers.
