Worldwide Report: The Diamond Facts

The Renwal of Botswana and De Beers

At the end of February, the Government of the Republic of Botswana and the De Beers Group confirmed their diamond partnership by signing new 10-year agreements (extendable by another 5 years), with a 25-year extension of mining licenses (from 2029 to 2054) for the 50-50 Debswana joint venture. Under the new agreement, for the first five years, the Okavango Diamond Company, Botswana government's rough diamond company, will sell 30% and De Beers 70% of Debswana's production; for the following five years, ODC will sell 40% and De Beers 60%; both parties will sell a 50% share for the five-year extension period. A package of commitments was also agreed to support Botswana's economic development goals and the advancement of the diamond industry. To be more precise: a Diamonds for Development Fund is to be created to support economic growth, diversification and employment in the country; De Beers has pledged to make an investment of approximately $75 million and to make additional annual contributions from Debswana's dividends, based on the latter's performance; a package of De Beers initiatives so that the people of Botswana become more involved in the diamond industry, in other words, a diamond jewelry manufacturing factory, the establishment of a De Beers Institute of Diamonds grading laboratory as well as a diamond vocational training institute; co-investment by the Government of Botswana and De Beers in marketing initiatives to increase demand for diamonds, stimulate rough stone sales, protect the ethical integrity of diamonds, and maintain and strengthen consumer confidence.

DiamondProof for diamond testing

The DiamondProof diamond verification device developed by De Beers is now in the stores. The tool is able to quickly and reliably distinguish between natural diamonds and synthetic or lab-grown diamonds, giving consumers instant access to information that is crucial to their purchase. DiamondProof provides retailers with a tool to educate customers on the differences between natural diamonds and other products by unveiling all the characteristics of natural diamonds, as opposed to laboratory-grown diamonds, and enabling accurate stone identification. Among the first to embrace the innovative device are some of the largest US retailers, as well as a series of independent points of sale so that this technology can reach consumers in a variety of retail environments. DiamondProof has been developed to quickly and easily examine both loose and mounted diamonds.

The new projects by Lucapa 

Diamond production at the Lulo mine in Angola has been significantly impacted by major flooding and infrastructure problems, as well as the geopolitical and economic uncertainties that have affected diamond prices. Despite these setbacks, Lucapa Diamond Company  recovered 25,341 carats of rough diamond from Lulo in 2024, achieving a sales volume of 27,364 carats at an average price of $1,980 per carat. The mine produced five diamonds over 100 carats during the year. Lucapa also launched a capital raising campaign to strengthen its financial position, securing $1.9 million in financing through a share placement and purchase plan. Going forward, the company will focus on stabilizing operations at Lulo, developing the Merlin project, and managing ongoing market volatility.