De Beers, African Diamonds, and Wati Ventures, the shareholders of Boteti, are currently in the concluding stages of discussions with the Government of the Republic of Botswana to resolve all outstanding issues surrounding the development of the AK06 project.
The discussions have principally focussed on mitigating the impact of the regional power shortage, which presents a challenge, particularly with regard to the development timelines, for the AK06 project. The talks have been constructive and have aimed to find a way to provide the project with a secure and cost effective power supply, while avoiding undue delay. De Beers is confident that the successful conclusion of these discussions will result in AK06 joining Botswana’s world-class stable of diamond mines in 2011.
Separately, agreement, in principle, has already been reached between De Beers and Government for the diamonds from AK06 to be sold through DTC Botswana, a 50/50 joint venture partnership between Government and De Beers, in order to support Government’s beneficiation objectives.
Commenting on the matter, Gareth Penny, De Beers Group Managing Director, said “Government has acknowledged the gravity of the power supply issue and is investigating solutions to address the challenge and ensure the project has a sustainable supply of power. We are appreciative of the positive and meaningful engagement that Government has shown throughout this process. As Botswana’s largest private investor, De Beers is excited to further our commitment to Botswana’s diamond future with the development of the multi-billion Pula AK06 project.”