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Botswana’s VP expresses  confidence in  ongoing efforts to secure a buyer for De Beers

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Botswana’s Vice President Ndaba Gaolathe has expressed strong confidence in the ongoing efforts to secure a buyer for De Beers, as Anglo American prepares to divest from its diamond operations. His remarks, delivered during an interview in Washington, suggest that the process is progressing well and that there is broad international interest in acquiring Anglo’s 85 per cent stake in the iconic diamond company.

The sale comes amid Anglo American’s strategic pivot away from diamonds and other assets to concentrate on copper, a sector currently yielding higher returns. De Beers has seen its valuation decline sharply in recent years, with Anglo having written down its value twice in the past 13 months. Once a cornerstone of the group’s portfolio, De Beers is now valued at $4.1 billion, significantly lower than when Anglo assumed full control in 2012.

Crucially, Gaolathe indicated that Botswana — already holding a 15 per cent stake in De Beers — is considering a substantial increase in its ownership, potentially up to 50 per cent. Such a move would mark a major shift in the company’s ownership structure and could redefine the power dynamics within the global diamond industry. Botswana, as one of the world’s largest diamond producers, has long been a key partner in De Beers’ supply chain, and this increased stake would reinforce its strategic influence over the sector.

The government’s willingness to expand its stake also reflects a broader effort by resource-rich nations to assert greater control over their mineral wealth and to ensure that profits from extraction are more equitably shared. If realized, Botswana’s expanded role in De Beers could serve as a model for other producing countries seeking to balance economic development with stronger national participation in global value chains.

With a sale or IPO expected by the end of 2025, the coming months will be critical in shaping the future of one of the diamond industry’s most storied names. Will Botswana emerge as a dominant shareholder, or will another global player step in? Either way, the outcome is likely to reshape the contours of the international diamond trade.

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DiamondBuzz

Anglo American Advances De Beers Separation Amid Challenging Diamond Market

Anglo American Emphasized That The De Beers Carve-Out Remains A “Central Pillar” Of Its Transformation Plans

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Anglo American plc has confirmed steady progress in separating its iconic diamond subsidiary, De Beers Group, as part of a broader portfolio restructuring amid persistently subdued market conditions. This development underscores the mining giant’s strategic pivot away from diamonds toward higher-margin commodities.

In its Annual General Meeting (AGM) address, Anglo American emphasized that the De Beers carve-out remains a “central pillar” of its transformation plans, running parallel to divestments in steelmaking coal and nickel assets. In a year characterized by volatile markets and slow economic recovery in China, and with weaker iron ore prices and cyclically low diamond prices, Anglo American delivered a stable operating and financial performance.

Post-exit, Anglo American plans to refocus on premium segments like copper, high-quality iron ore, and crop nutrients, effectively shedding exposure to the cyclical diamond trade. Production guidance for De Beers holds steady at 21-26 million carats for 2026, with output adjustments aligned to prevailing demand.

While specific timelines for completion remain undisclosed, Anglo American anticipates providing further updates throughout 2026 as the sale process unfolds. This move signals deepening structural shifts in the global diamond supply chain, potentially reshaping rough diamond availability and pricing dynamics for Indian polishers and exporters.

With natural diamond prices under pressure from lab-grown alternatives and softening luxury demand—exacerbated by China’s uneven recovery—Anglo’s exit may prompt consolidated output cuts, stabilizing rough prices in the medium term but challenging mid-tier producers reliant on consistent volumes.

Stakeholders await clarity on potential buyers, with speculation centering on strategic investors or sovereign funds eyeing long-term diamond assets.

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