Botswana, a small landlocked country in Southern Africa, has been hailed as a success story in the diamond industry. The country's rich diamond deposits have made it one of the world's leading producers of the precious gemstone. However, recent developments have raised questions about whether Botswana is getting a fair deal from De Beers, the mining giant that has dominated the country's diamond industry for decades.
Under the terms of the agreement, De Beers pays the government of Botswana a royalty of 10% on the value of diamonds extracted from the mines. However, critics argue that this royalty rate is too low, and that the government of Botswana is not getting a fair share of the revenue generated by the diamond industry.
In 2018, a report by the human rights group, Global Witness, accused De Beers of failing to provide adequate compensation to communities affected by its mining operations. The report also accused the company of using security forces to intimidate and harass local communities.
The debate over revenue sharing has been ongoing for several years. The government of Botswana has argued that it should receive a higher share of the revenue generated by the diamond industry, while De Beers has argued that its investment in the industry justifies its share of the revenue.
Is Botswana Getting A Raw | Deal From De Beers Diamonds - The World News
Botswana, a small landlocked country in Southern Africa, has been hailed as a success story in the diamond industry. The country's rich diamond deposits have made it one of the world's leading producers of the precious gemstone. However, recent developments have raised questions about whether Botswana is getting a fair deal from De Beers, the mining giant that has dominated the country's diamond industry for decades.
Under the terms of the agreement, De Beers pays the government of Botswana a royalty of 10% on the value of diamonds extracted from the mines. However, critics argue that this royalty rate is too low, and that the government of Botswana is not getting a fair share of the revenue generated by the diamond industry.
In 2018, a report by the human rights group, Global Witness, accused De Beers of failing to provide adequate compensation to communities affected by its mining operations. The report also accused the company of using security forces to intimidate and harass local communities.
The debate over revenue sharing has been ongoing for several years. The government of Botswana has argued that it should receive a higher share of the revenue generated by the diamond industry, while De Beers has argued that its investment in the industry justifies its share of the revenue.