GABORONE - After eight years of negotiations, Botswana and De Beers Group finally signed the renewed diamond sales agreement on Tuesday in Gaborone, the capital of Botswana.

Botswanan President Duma Boko said during the signing ceremony that the new agreement added a possible five-year extension to the provisional deal.

Describing the new agreement as a "good deal", Boko expressed optimism that it will carry the southern African country into the future. He also expressed confidence that the new pact will create much-needed job opportunities in Botswana.

Okavango Diamond Company, Botswana's state-owned diamond company, will, under the renewed deal, see its share in the production of Debswana, a 50/50 joint venture with De Beers, reaching 40 percent at the end of the agreement, a revision from a provisional 50 percent.

"Botswana is the best place in Africa to do business and locate offices and factories because we respect partnerships here," said Boko.

Bogolo Kenewendo, Botswana's minister of minerals and energy, said the formal agreements also represent a 25-year extension of Debswana's mining licenses from August 2029 to July 2054.

This will enable the Debswana joint venture to deliver long-term value from its existing mining assets and mine life extension projects beyond the current mining license period, according to Kenewendo.

"We are proud to announce the signing of this landmark new agreement, which will underpin the success of our diamond industry as we enter an exciting new phase of Botswana's sustainable economic development," she said.

Expressing hope that these agreements will bring some level of stability and rebuild market confidence in the diamond industry, she looked forward to "our renewed partnership with De Beers".

"Together, we will drive development through diamonds and build a brighter future for Batswana," Kenewendo added.

The deal has been described as critical for the southern African country since its economy is largely dependent on the export of diamonds, Gift Bakumbi, an independent economist, told Xinhua in an interview on Tuesday.