De Beers extends 10-yr Botswana sales deal on coronavirus delays

Vector

15/12/2020 09:58

LONDON, Dec 15 (Reuters) - Diamond miner De Beers said on
Tuesday it had extended a 10-year sales agreement with Botswana
by a year due to logistical challenges caused by the coronavirus
pandemic, allowing the two sides more time to negotiate.
    The Anglo American  AAL.L  unit, which is 15% owned by the
government of Botswana, saw sales plummet during the peak of the
pandemic, forcing it to restructure its business.
    The 2011 rough diamond sales agreement, in which the
jointly-owned Debswana sells all its output to De Beers, was
originally due to expire at the end of 2020 but has now been
extended to the end of next year, De Beers said in a statement. 
    "The extension, which will extend the terms of the existing
agreement, will provide further time for discussions regarding
the contract renewal," the miner said. 
    Diamond sales have rebounded from this year's trough as
lockdowns eased and the high sales season of the December
festive season approached, De Beers said in November.
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 (Reporting by Zandi Shabalala; Editing by Kirsten Donovan)
 ((zandi.shabalala@tr.com;))