Miningweb: Botswana aims to take majority of De Beers by October, president confirms

Key topics:Botswana aims to acquire majority stake in De Beers by end of October.Anglo American explores De Beers sale amid slump in diamond market.Botswana seeks partners, including Oman fund, to boost economic control..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa's bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here.By Jennifer Zabasajja and William Clowes.Botswana’s president aims to complete a deal to take a majority stake in De Beers by the end of next month, even as his administration and other potential buyers continue negotiations with the diamond company’s controlling shareholder.Anglo American Plc is looking to divest its 85% stake in De Beers, which mines most of its gems in the southern African nation, as part of a restructuring process that began 16 months ago. The London-listed miner has waited to sell its diamond unit amid a prolonged slump in the natural stones market, which is grappling with fierce competition from much cheaper lab-grown alternatives. Anglo has received interest from other buyers and a deal with Botswana hasn’t been finalized.A spokesperson for Anglo — which wrote down the value of De Beers to $4.9 billion in February — said the company “continues to engage” with Botswana “as our partner in De Beers.” The government already owns the remaining 15% of the diamond firm..Read more:.FT: Botswana threatens takeover as Anglo prepares to sell De Beers.Botswana is in talks with a sovereign wealth fund in Oman among others to help finance an acquisition that would lift the state’s interest in De Beers above 50%, President Duma Boko said. “We are more than ready for the transaction and we’ve said the transaction must be concluded by the end of October,” Boko said in an interview with Bloomberg TV in New York. “It’s a matter of economic sovereignty for Botswana.”The Oman Investment Authority didn’t respond to an email seeking comment.Diamonds, which account for 80% of export sales and about a third of government revenue, have been the bedrock of Botswana’s economy for decades. The downturn in gem prices is likely to result in the economy contracting for a second successive year in 2025, according to S&P Global Ratings, which this month cut the country’s long-term sovereign credit rating. The economic crisis prompted Boko – who was voted into power in October – to declare a public health emergency on Aug. 25. The prolonged downturn in diamond sales has caused funds for medical supplies to dry up.Botswana owns 50% of Debswana, the main producer of rough diamonds for De Beers, which owns the remaining stake. Sales from the joint venture fell 46% last year, according to the central bank..De Beers vies with Russia’s Alrosa PJSC to be the world’s largest producer of diamonds. Omani state-backed fund Maaden International Investment LLC acquired Alrosa’s stake in a diamond-mining venture in Angola 11 months ago.Anglo has received indications of interest from potential buyers including two former chief executive officers of De Beers, Bloomberg reported in June. The mining giant is examining options for an initial public offering or demerger of the unit, but would prefer to complete a sale.Botswana wants control of De Beers to exercise greater sway over the entire international supply chain, particularly to emphasize the superiority of natural diamonds, Boko said. He urged anyone “who is in love and who wants to get married” to shun engagement rings with synthetic stones.Prices should recover, “but obviously it will also be a function of proper marketing and differentiation in the market,” he said.Boko’s government is in talks with the US — the biggest buyer of natural gems — to remove tariffs on diamonds, and the president expects to meet Commerce Secretary Howard Lutnick to discuss the matter.“I am confident that by the end of the year they would have achieved that,” Boko said..© 2025 Bloomberg L.P.

Miningweb: Botswana aims to take majority of De Beers by October, president confirms

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