Botswana’s government has signaled a bold move to acquire a controlling stake in diamond giant De Beers, adding new complexity to the ongoing divestment process by current owner Anglo American, according to a report by Mining.com citing the Financial Times.
Currently holding a 15% stake in De Beers and a 50% share in the Debswana joint venture, Botswana plays a pivotal role in the company’s diamond production. The country now appears poised to deepen that involvement. Minister of Minerals and Energy, Bogolo Kenewendo, stated that President Duma Boko is committed to increasing Botswana’s ownership to gain full control over the strategic asset and its value chain — including marketing operations.
While De Beers previously hinted in February at the possibility of Botswana expanding its stake, recent government statements indicate a more assertive stance. With a bid deadline set for early August, the minister made clear that any sale conducted without Botswana’s endorsement would face significant hurdles.
“Our partners at Anglo American have, regrettably, failed to manage the process transparently or in coordination with the government and with our support,” Kenewendo said, suggesting a breakdown in collaboration.
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This opposition could heavily influence Anglo American’s attempt to offload its stake in De Beers. The company is currently pursuing a “dual track” approach — considering direct offers for the diamond producer while also exploring the option of a public listing should no satisfactory bids emerge.
The planned divestment is part of Anglo American’s broader restructuring strategy following its rejection of a £39 billion ($52.8 billion) acquisition bid from mining rival BHP in 2024. However, the sale comes at a challenging time for the diamond industry. De Beers is grappling with declining demand — particularly from major markets like China — and growing competition from lab-grown diamonds, which has led to a growing stockpile of unsold gems.