31 May 2024
BOTSWANA President Mokgweetsi Masisi wanted a quick separation from Anglo American in terms of the UK group’s plans to sell its 85% stake in the diamond miner.
Botswana has a 15% stake in De Beers through a joint venture held with Anglo American which earlier this month outlined plans to sell its long-held diamond investment.
The restructuring came amid a takeover proposal from BHP. The Australian miner eventually backed out of making a firm offer to buy Anglo, but it’s possible it might return in as little as six months with a hostile offer. Takeover offers from third parties could not be ruled out either.
“One thing we don’t want is a hostile owner,” Masisi was quoted by Reuters as saying.
“We are watching this very closely because whoever buys Anglo, if it is sold, will then be the owner of De Beers, and De Beers is our strategic partner with whom we are at the tail end of our negotiations,” he said.
Reuters reported Masisi as saying he would meet Anglo and De Beers executives at jewellery industry trade event the JCK Show in the US this week.
“We have received some assurances, and the reason for travelling is to go and get that firsthand from the principals of Anglo and De Beers that they are committed to separating De Beers from Anglo before Anglo is sold, if it is sold,” Masisi said.
According to industry watchdog Kimberley Process Certification Scheme data, Botswana produced 20% of the world’s total rough diamonds in 2022, behind Russia. The southern African country is, however, the world’s top diamond producer by value.
Botswana is poised to launch a $6bn project to extend the life of its flagship Jwaneng diamond mine. Ahead of its announcement, Masisi voiced his concerns about the threat posed by laboratory made or synthetic diamonds to natural diamonds.
“If lab grown diamonds take our space, then you and I are finished,” Masisi told reporters.
Botswana flags synthetic gem threat ahead of $6bn diamond project launch
President Mokgweetsi Masisi on Wednesday called synthetic gems a threat to the country’s economic lifeblood, as the government readies to launch a $6-billion project to extend the life of its flagship Jwaneng diamond mine.
The natural diamond market has struggled in the past two years due to rising consumer demand for cheaper lab-grown diamonds, coupled with global macroeconomic volatility.
Masisi will participate this week at the JCK Show in Las Vegas, considered the world’s largest jewellery trade event, to promote Botswana as a leading producer of ethically and responsibly sourced diamonds as the country looks to safeguard its market share for natural diamonds.
According to industry watchdog Kimberley Process Certification Scheme data, Botswana produced 20% of the world’s total rough diamonds in 2022, behind Russia. The southern African country is, however, the world’s top diamond producer by value.
The gems contribute up to 40% of government revenue, 75% of its foreign exchange earnings and a third of national output.
President Masisi said he would wage “a peaceful assault against lab grown diamonds, to give confidence to our partners and dampen any attraction to lab growns.”
Botswana and its partner De Beers, set to be spun off by parent company Anglo American, plan to launch the first phase of a $6-billion project on June 28 to extend the Jwaneng mine’s lifespan from the current 2032 horizon to 2054.
The first phase, expected to cost $1-billion, will establish a drilling platform to make comprehensive sampling of diamond-bearing rock easier. It will also develop essential infrastructure to support further stages of the project.
Jwaneng, in operation since 1982, produces an average 11-million carats per year, employing 2 100 permanent employees and 3200 contractors.
At the show, Masisi also plans to lobby the United States against plans by the Group of Seven (G7) countries to ensure all diamonds entering the bloc pass first through Antwerp in Belgium for certification.
The US, which consumes around 40% of the world’s diamonds, is leading the push for certification as part of sanctions imposed on diamonds from Russia following its invasion of Ukraine.
Sources: https://www.miningmx.com/trending/57076-botswana-seeking-quick-separation-from-anglo/ & https://www.miningweekly.com/article/botswana-flags-synthetic-gem-threat-ahead-of-6bn-diamond-project-launch-2024-05-29
