Anglo’s handling of De Beers sale irks stakeholder Botswana
Anglo American’s handling of the De Beers sale has angered Botswana, which owns 15% of the diamond producer, because the government believes that it hasn’t been properly consulted, people with knowledge of the matter said.
Anglo is selling De Beers as part of a restructuring plan outlined by CEO Duncan Wanblad after the company fended off a takeover approach from BHP Group last year.
The southern African nation is weighing options including buying Anglo’s stake, the people said asking not to be identified because the information is private. The government has appointed advisers from a Swiss firm, the people said, adding that Anglo hasn’t met with Botswana, which has preemptive rights on any deal, to discuss the sale process.
De Beers is critical for Botswana, the world’s largest diamond producer by value. The precious stones account for most of its exports and about a third of its revenue. The government expects its economy to either stagnate or contract this year due to a protracted downturn in diamond sales.
“De Beers is not doing its job,” said Botswana President Duma Boko on a visit to Lesotho this week. “The diamonds are ours. Before the end of this year something very drastic in that space will happen.”
Anglo is engaging with the government at all appropriate stages of the process, said the company’s spokesperson.
Botswana’s government spokesperson referred to the president’s statement when reached for comment.
The nation’s Minerals and Energy Minister, Bogolo Kenewendo confirmed that the administration had hired advisers and was working on acquiring an additional stake in De Beers.
Botswana also owns 50% of Debswana, which is the main producer of rough diamonds for De Beers. The nation has an investment grade rating, and is in a position to raise the required funds if they chose to buy the company, the people said.
Under the current shareholder agreement, any sharing of information on Debswana’s assets to third parties needs written consent from the government shareholder, the people said.
Any deal that has not been approved by Botswana can be blocked, said the people.
Sign up here for the twice-weekly Next Africa newsletter, and subscribe to the Next Africa podcast on Apple, Spotify or anywhere you listen.
Comments
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation