Trade and government take to resolving power issues at AK06

Developments on the much discussed AK06 project in Botswana are now seeing discussions between De Beers, African Diamonds, and Wati Ventures- the shareholders of Boteti, and the Government of the Republic of Botswana, take constructive shape.

The discussions have principally focussed on mitigating the impact of the regional power shortage, which presents a challenge, particularly for development timelines, of the AK06 project. The talks are directed at finding a solution for a secure and cost effective power supply, while avoiding undue delay. De Beers is expecting a successful conclusion of these discussions, and the AK06 joining Botswana’s world-class stable of diamond mines in 2011.

In a separate development, De Beers and the Government have reached an in-principle agreement for diamonds from AK06 to be sold through DTC Botswana, a 50/50 joint venture between the two entities, formed to support the Government’s beneficiation objectives.

Commenting on the matter, Gareth Penny, De Beers Group Managing Director, said “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.”