The Botswana government has signed a new diamond sales agreement crucial to its economy with the De Beers mining company after seven years of negotiations.

Botswana's government on Tuesday signed a long-delayed 10-year diamonds sales agreement with Anglo American unit De Beers adding a possible extension period of five more years to the provisional pact.

GABORONE - After eight years of negotiations, Botswana and De Beers Group finally signed the renewed diamond sales agreement on Tuesday in Gaborone, the capital of Botswana. Botswanan President Duma Boko said during the signing ceremony that the new agreement added a possible five-year extension to the provisional deal.

As part of the deal, Botswana's share of diamonds from Debswana, a joint venture with De Beers, will rise from 25% to 50%.

The ten-year deal signed Tuesday in Gaborone also covers the sale of diamonds, the renewal of mining licenses and other capital commitments.

Local economist Keith Jefferis said concluding the deal was critical to the global diamond industry. “ [It is] a very positive move that the deal has finally been reached,” Jefferis said. “It will certainly help to bring some certainty to the global diamond industry.

The partnership secures long-term value from existing mines and expansions such as Jwaneng Cut-9 and Jwaneng Underground.

Botswana has just sealed a historic 10-year diamond sales agreement with De Beers, marking a significant milestone in the country's diamond industry. This landmark deal reinforces Botswana's position as a global leader in diamond production.

Botswana’s government and De Beers, the diamond mining unit of Anglo American, have finalised a 10-year diamond sales agreement after a protracted negotiation period, Reuters reported on Tuesday. This new agreement replaces a provisional deal and includes a potential extension of five additional years.