Anglo American hints anxiety in talks such as ‘Renewal of Vows with Botswana’

Image credit: Gerd Altmann (Pixabay)

(weekendpost.co.bw) - President Mokgweetsi Masisi has coined the De Beers 50/50 partnership with Botswana Government as a “marriage” and at the last Diamond Conference he spoke of “renewal of vows” referring to talks between the two parties. The Botswana-De Beers diamond sales deal was renewed into a 10 year union in 2010, it lapses this year in September. However there is a widespread concern that ever since the ongoing talks began, the talks have been taking place in secrecy in Gaborone and London boardrooms. But a lot of public curiosity is about the two parties publicly appearing to be diplomatic about their negotiations and promoting an unbreakable five decade bond. Owner of De Beers, Anglo American, has recently indirectly released a hint red flagging on how dicey it is for the company to be in a business partnership with governments, like the deal with Botswana through their subsidiary. In its recently released annual financial report and notice of AGM, Anglo American hinted that in a deal with Botswana through De Beers there could be, “uncertainty over future business conditions leads to a lack of confidence in making investment decisions, which can influence future financial performance.” Anglo American wanted to highlight “principal risks” that come with the company’s business and political and regulatory concerns were in the basket, with a worry that a deal with government may bring unexpected and uncalculated future changes.