Botswana to double De Beers holding under Anglo stake sale

Botswana’s government plans to double its stake in diamond producer De Beers, increasing its holding to 30%, President Duma Boko announced on Monday. This move comes following a bid from the Global Diamond Consortium group to acquire the existing 85% stake that is up for sale by Anglo American. "Botswana’s shareholding in De Beers will double from the current 15%.

Botswana will become the single largest shareholder in De Beers," Boko stated in a speech in parliament. "Botswana will become the single largest shareholder in De Beers, and with that comes greater influence in the strategic decisions for decades to come."

The increase in Botswana's shareholding will not only give the country greater influence over the strategic decisions of De Beers but also expose it to advanced technology through Element Six, the synthetic diamond business of the miner. "Our investment in De Beers is not just an investment in natural diamonds. It is an investment in technology," Boko said.

The president confirmed that Element Six will take part in a planned $600 million synthetic diamond plant that Reuters reported in January would be constructed in the United States. As demand for synthetic diamonds used in high-performance computing is expected to grow with the expansion of artificial intelligence and large-scale data centres, this presents new opportunities beyond the traditional diamond market for Botswana.

Namibia and Angola's governments have agreed to participate in the De Beers transaction, alongside the Global Diamond Consortium. Swiss luxury group Richemont, owner of Cartier, is among the companies reportedly in talks to join the consortium. Despite its traditional focus on diamond production, Boko emphasized that Botswana's investment in De Beers extends beyond diamonds to the synthetic diamond sector.

"Our investment in De Beers is not just an investment in natural diamonds. It is an investment in technology," he affirmed. Moreover, the US government has engaged Element Six in a partnership for synthetic diamond technology, which Boko believes could form the core of a new technology partnership between Botswana and the United States.