De Beers in new Botswana exploration venture

JOHANNESBURG – South African mining giant De Beers yesterday finalised a joint venture with Firestone Diamonds to explore and develop a new diamond mine in Botswana, the companies announced.

The South African firm will hold an initial 51 percent stake while the London-listed Firestone will hold 49 per cent in the new venture, a De Beers statement said. “Under the terms of the joint venture agreement, De Beers will be responsible for financing and carrying out all exploration and evaluation work,” it said.”Upon completion of the first bankable feasibility study, De Beers interest will rise to 61 per cent.”The exploration centred around the Mopipi project, about 450 kilometres north of Gaborone which lay adjacent to De Beers’ Orapa and Letlhakane diamond mines.”The Mopipi project covers an area of approximately 3 200 square kilometres, making Firestone the largest holder of diamond exploration rights in the Mopipi and Orapa areas,” the statement said.De Beers is to shortly commence an intensive exploration and evaluation programme.”The first phase of work will comprise of the integration of data from exploration carried out by Firestone with De Beers’ extensive geological database from more than 30 years of exploration and mining in the Mopipi and Orapa areas.”Landlocked Botswana is the world’s largest producer of gem-quality diamonds, which in 2002 accounted for 77 per cent of its earnings and 45 per cent of its gross domestic product.The country’s diamond industry is controlled by Debswana, a company formed in 1969 as a partnership between De Beers and the Botswana government.It is an equal partnership, but Botswana’s government imposes a 25-per cent tax on De Beers, which grants it an effective 75 per cent of the profits.- Nampa-AFP”Under the terms of the joint venture agreement, De Beers will be responsible for financing and carrying out all exploration and evaluation work,” it said.”Upon completion of the first bankable feasibility study, De Beers interest will rise to 61 per cent.”The exploration centred around the Mopipi project, about 450 kilometres north of Gaborone which lay adjacent to De Beers’ Orapa and Letlhakane diamond mines.”The Mopipi project covers an area of approximately 3 200 square kilometres, making Firestone the largest holder of diamond exploration rights in the Mopipi and Orapa areas,” the statement said.De Beers is to shortly commence an intensive exploration and evaluation programme.”The first phase of work will comprise of the integration of data from exploration carried out by Firestone with De Beers’ extensive geological database from more than 30 years of exploration and mining in the Mopipi and Orapa areas.”Landlocked Botswana is the world’s largest producer of gem-quality diamonds, which in 2002 accounted for 77 per cent of its earnings and 45 per cent of its gross domestic product.The country’s diamond industry is controlled by Debswana, a company formed in 1969 as a partnership between De Beers and the Botswana government.It is an equal partnership, but Botswana’s government imposes a 25-per cent tax on De Beers, which grants it an effective 75 per cent of the profits.- Nampa-AFP