- As one of De Beers’ major shareholders and a longtime partner through Debswana, the Botswana Government is expected to play a decisive role in determining the company’s future direction
BONGANI MALUNGA
Anglo American has positioned Botswana as a key player in the final phase of its De Beers divestment. The mining giant announced that Botswana will be directly involved in negotiations with one or two shortlisted bidders, underscoring the country’s strategic importance to the diamond business.
BOTSWANA’S KEY ROLE
Speaking at the Financial Times Mining Summit last week, the CEO of Anglo American, Duncan Wanblad, confirmed that Botswana will play a key role in the upcoming sale negotiations.
The diamond giant, which carries a book value of around $5 billion, is expected to fetch between $3 billion and $4 billion, according to industry analysts who cite the currently subdued state of the global diamond market as a factor weighing down its potential sale price.
“What we are planning to do is now move into the second round with one or two of the
potential selected buyers that came through the first round with us and work with the Government of Botswana in finalising an agreement that works, not only for the potential buyers but also for Botswana,” Wanblad remarked.
CONSTRUCTIVE DIALOGUE
“We’re also very cognisant and very thoughtful about the role that De Beers plays in the diamond markets and specifically for Botswana as well as other producer countries. “So dialogue is constructive with the Government of Botswana and we will continue to progress that to a successful conclusion in the next few months.”
BOTSWANA, ANGOLA PLUS SIX CONSORTIA
In addition to bids from Botswana and Angola, De Beers has attracted interest from at least six consortiums. Wanblad welcomed the rising level of interest but emphasised that the Group remains under no obligation to proceed with any offer that does not meet its valuation expectations.
POSITIVE DEVELOPMENT
“It’s really positive news that the government of Angola has expressed an interest in taking some ownership,” he said. “We’re taking all of this into the mix and working through what’s best for the business, for Anglo and for Botswana.”