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The government owns a 15% stake in De Beers and Botswana accounts for 70% of the company’s annual rough diamond supply. Anglo outlined a radical review of its business including a sale or divestment of the diamond business to focus on copper, iron ore, and a fertilizer project in the UK to fend off a takeover from bigger rival BHP Group.
The Botswana government may raise its shareholding in global diamond miner De Beers, President Mokgweetsi Masisi said after parent company Anglo American AAL.L revealed its plans to spin off or sell the business.
The government owns a 15% stake in De Beers and Botswana accounts for 70% of the company’s annual rough diamond supply. Anglo outlined a radical review of its business including a sale or divestment of the diamond business to focus on copper, iron ore, and a fertilizer project in the UK to fend off a takeover from bigger rival BHP Group.
Masisi said in Las Vegas that Anglo’s sale of De Beers would be the best thing if it happens. The government could raise its shareholding in De Beers if it was attractive. Masisi told an online diamond news channel. The president in May said that the government would defend its interests in diamond mining.
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Among the plans Anglo could consider is an initial public offering for the diamond business. Like other luxury goods, diamond prices have been hammered by a slump in global demand. De Beers has been limiting supply and offering flexibility to contracted customers. In February, Anglo announced a USD 1.6 billion impairment charge on De Beers. Anglo acquired De Beers in 2011, buying the Oppenheimer family’s 40% stake for USD 5.1 billion.
