Secret Kingdoms: De Beers, Botswana and the Global Diamond Trade

The relationship between De Beers and the Government of Botswana is frequently held up by the international community as the ‘gold standard’ of developing country relations with mining companies. This peer reviewed book looks in detail at that relationship and the culture of secrecy in every commercial aspect of the global diamond trade in Botswana and abroad. The data in this book provides a unique glimpse at the profitability of the De Beers operations in Botswana because it contains the hitherto secret accounts of Debswana, the local subsidiary which is owned 50/50% by the government of Botswana and De Beers. Virtually every aspect of the diamond trade is secret including company accounts, prices, government-firm contracts, resource estimates as well as the precise corporate structure. The secrecy of Debswana accounts continues even after the EU Transparency Directive. The book considers threats to Botswana’s fiscal position with the advent of synthetic diamonds. The final sections address the optimal rate of diamond depletion and the direction of Botswana’s policy in the diamond sector. The book will be of great use to those experts in the diamond industry.