Botswana’s Government has expressed its intention to acquire a controlling stake in De Beers, reported Mining.com, citing the Financial Times.
This development adds a layer of complexity to the ongoing sale process of the diamond producer by its current owner, Anglo American.
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Botswana, which currently owns a 15% stake in De Beers and half of the Debswana joint venture, is a key player in De Beers’ diamond supply.
The country’s Minister of Minerals and Energy, Bogolo Kenewendo, conveyed that President Duma Boko is determined to increase Botswana’s stake in De Beers to gain full control over the strategic asset and its value chain, including marketing.
In February, De Beers indicated that Botswana might be looking to expand its ownership share. However, recent statements suggest a change in both the tone and scope of their intentions.
With an early August deadline looming for bids to be submitted to Anglo American from potential buyers, the minister emphasised that any sale without the support of Botswana’s Government would be challenging.
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By GlobalData“Our partners at Anglo American have, regrettably, failed to manage the process transparently or in coordination with the government and with our support,” Bogolo said.
Botswana’s opposition to Anglo’s plans could significantly impact the potential sale of De Beers, the report stated.
Anglo American is exploring a “dual track” process, considering both bids for the company and a potential public listing if a suitable offer is not found.
The company is facing mounting pressure to finalise its withdrawal from De Beers within the current year, a move that is part of a broader reorganisation following the rejection of a £39bn ($52.8bn) acquisition offer from BHP last year.
However, the diamond market is currently facing a downturn, with increased competition from lab-grown diamonds and reduced demand from key markets such as China, leading De Beers to accumulate a significant stockpile of diamonds.
