Botswana and Angola Eye Greater Control of De Beers in Gaborone Talks

Mining officials from Botswana and Angola met in Gaborone on Friday (November 7) to explore potential cooperation in the diamond industry. According to Reuters, both countries are eyeing greater control over major miner Anglo American's (LSE:AAL,OTCQX:AAUKF) De Beers division.

Bogolo Joy Kenewendo, Botswana’s mines minister, and her Angolan counterpart, Diamantino Pedro Azevedo, held a 40 minute closed-door session before briefly addressing reporters.

“As some of the largest producers of diamonds by quantity and value in the world, it is only right that we meet and join hands in discussing how to get the most out of this natural resource,” Kenewendo said.

Angola’s mines ministry said the two governments discussed their “interest in acquiring shares in the multinational De Beers.” The ministers later met with Botswana’s president, Duma Boko, for further discussion.

Anglo American is moving ahead with its plan to sell its 85 percent stake in De Beers, valuing the business at around US$4.9 billion. The move is part of the miner’s broader restructuring to focus on iron ore, copper and fertilizer projects.

Analysts estimate the eventual sale price could fall between US$3 billion and US$4 billion.

Botswana, which owns the remaining 15 percent of De Beers and contributes about 70 percent of its annual rough diamond production, views the company as a strategic national asset.

The country has worked closely with De Beers for decades through the Debswana joint venture, which operates key mines including Jwaneng, the world’s richest diamond mine.

Angola, by contrast, is a rising force in the sector. Backed by state-owned producer Endiama, the country has made major strides in diamond output and transparency. It sought a minority stake in De Beers earlier this year, but has since launched a bid for majority control, setting up what could become a regional bidding war.

That ambition follows a remarkable reversal of fortunes in Africa’s diamond landscape. Statistics show that Angola overtook Botswana in 2024 as the continent’s top producer by value for the first time in two decades.

For De Beers, the renewed interest coincides with the firm's recent third quarter production results, which demonstrate a stronger operational performance despite persistent demand uncertainty.

The company’s third quarter report shows that production rose 38 percent year-on-year to 7.7 million carats, supported by a sharp recovery at Jwaneng, where output more than doubled to 3.2 million carats as workers processed higher-grade ore ahead of maintenance downtime scheduled for the fourth quarter.

Botswana accounted for nearly 6 million carats of that total, up 51 percent from a year earlier. In South Africa, the company produced 659,000 carats, up 28 percent, as it began processing higher-grade ore from the Venetia mine.

De Beers has also made exploration strides further north. This past August, the company and Endiama announced the discovery of a new kimberlite field in Northeastern Angola — its first such find in 30 years.

Despite those gains, the diamond market remains subdued. Rough diamond prices have weakened since mid-2024 amid sluggish consumer demand in the US and China, the industry’s two largest markets.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.