Diamond giants plan Botswana exploration

African Diamonds and De Beers said they are setting up a joint venture to explore for diamonds and develop new mines in Botswana.

African Diamonds will initially own 49% of the venture, with De Beers holding the remaining 51%.

De Beers will fund the venture through a bankable feasibility study and its stake will rise to 70% upon completion of the first feasibility study.

Larger mines will be operated by De Beers and those below an agreed threshold operated by African Diamonds, which will receive a preferential profit share in those operations.