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Anglo American Plc’s handling of the De Beers sale has angered Botswana, which owns 15 percent 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 chief executive officer 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 percent of Debswana, which is the main producer of rough diamonds for De Beers. Any deal that has not been approved by Botswana can be blocked, said the people. — Bloomberg
