De Beers have agreed to certain supply conditions with the Botswana government although a final agreement has yet to be reached. A number of outstanding issues will not have a major impact on the actual agreement. The Botswana government is De Beers’ largest diamond supplier and the biggest rough diamond producer in the world by value. De Beers have agreed to a figure by value for the amount of diamonds that should be manufactured in Botswana to boost employment. De Beers faces a penalty if it fails to meet the required manufacturing and employment targets.%%In total, 14 diamond companies have been granted licences to manufacture in the diamond-rich country. Four factories are already in operation. However, the current slump in the rough market could slow down the development of new cutting operations in Botswana.The companies are going to have to invest a lot of money in training and sustaining three to four months productions cycles. If it’s not subsidised it simply can’t be done economically. The government has signalled it will revoke licenses of companies that fail to set up cutting operations within a year.%%The licence holders have presented a business plan and are hoping to set up factories within a year. If not, the licences will be revoked. There are clear targets. De Beers said it is signing a whole suite of agreements between the government of Botswana and De Beers on May 23, 2006 as well as launching DTC Botswana. Details of the new venture will be unveiled at the event on May 23, 2006.