The Botswana government is open to discussions over a potential increase in its stake in De Beers, as Anglo American wants to walk away from the diamond, platinum, steelmaking coal, and nickel business.
The Financial Times quoted the country’s new minister of mines Bogolo Kenewendo as saying this was “absolutely” the right time for the discussions to take centre stage.
Botswana currently owns a 15% stake in De Beers, while Anglo American holds the remaining 85% shareholding.
Diamonds play a pivotal role in Botswana’s economy, contributing between 30% and 40% of the government's revenue, accounting for 75% of its foreign exchange earnings, and representing one-third of the nation's overall economic output.
De Beers chief executive Al Cook was quoted by the same publication as saying the recent conclusion of a 10-year sales agreement with Botswana would lead to an intense period of discussions to guarantee the separation benefits for both Anglo-American and Botswana.
“The idea will be to invest in businesses, initiatives, education and energy beyond diamonds that grows the economy of Botswana and grows thousands of jobs,” he said.
Anglo American chief executive Duncan Wanblad said De Beers will likely remain part of Anglo into 2026, depending on market recovery.
The diversified group is also expected to write down the value of De Beers, currently listed at $7.6 billion in its accounts. It wrote down De Beers’ value by $1.6 billion last year.
Mathew Nyaungwa, Editor in Chief, Rough&Polished
