Diamond-rich Botswana says it will increase its stake in De Beers to 30% under proposed sale

GABORONE, Botswana (AP) — Botswana's president said Monday that the diamond-rich southern African country will double its stake in De Beers to 30% under a proposed deal by a consortium of investors to buy Anglo American's shares in the company.

President Duma Boko said in a speech in Parliament that the move would make Botswana the largest single shareholder in De Beers, the world's leading diamond company. Boko said Botswana endorsed the Global Diamond Consortium of investors as the proposed buyer of De Beers.

Mining giant Anglo American put its 85% stake in De Beers up for sale in 2024 as part of a broader restructuring focused on minerals expected to boom from the transition to green energy and a downturn in the diamond market. As De Beers' other shareholder, Botswana's backing of the Global Diamond Consortium is key for the deal to proceed.

The purchase by the consortium, which is led by former De Beers CEO Gareth Penny, has not been finalized.

Botswana has long had a partnership with De Beers to operate its largest diamond mines through the Debswana joint venture. Botswana is one of the biggest natural diamond producers in the world and is looking to double down on the stones after a big dip in sales caused its diamond-dependent economy to contract last year.

The global natural diamond industry is undergoing a downturn, largely due to competition from artificial lab-grown stones and a decline in luxury spending in China, according to analysts.

Boko said fellow southern African nations Namibia and Angola would also be involved in the deal for De Beers, though he gave no details.

"For the first time, the great diamond producing nations of our region will sit together at the ownership table of the company that markets their diamonds, united by a shared belief that local resources should bring local prosperity,” Boko said.

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