Botswana is actively pursuing steps to acquire a majority stake in De Beers, President Duma Boko announced on Monday, following Angola’s declaration that it is also seeking control of the global diamond company.
Botswana currently owns 15% of De Beers and is responsible for 70% of the company’s annual rough diamond production.
Despite a drop in global diamond prices that has weighed heavily on its economy, the country views De Beers as a strategic national asset, according to Reuters.
During his State of the Nation Address in Gaborone, Boko emphasized that while the government aims to diversify the mining sector, diamonds will continue to play a major role in economic growth.
“It is in this regard that concrete steps are underway towards the acquisition of Anglo American’s shares in De Beers,” he said, without providing additional details.
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Mining ministers from Botswana and Angola held talks in Gaborone on November 7 amid concerns that both countries’ efforts to secure control of De Beers could lead to tensions between the regional partners.
Botswana did not directly address the competing bids following the discussions, but Angola’s mines ministry issued a statement saying the ministers talked about acquiring shares in De Beers, though it did not elaborate further.
Anglo American, which owns 85% of De Beers, is in the process of selling its entire stake as part of a strategic pivot toward focusing primarily on copper, a key metal for clean-energy technologies. The company currently values De Beers at $4.9 billion.
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Image Credit: Nairametrics
