Sale of Anglo American shares in DeBeers threaten Botswana diamonds
President Dr Mokgweetsi Masisi travelled to Las Vegas, United States, to safeguard Botswana's interests as the largest producer in the diamond industry, amid reports of Anglo America's sale of its shares in De Beers.
Addressing the Press Wednesday at the airport, Masisi emphasised the importance of instilling confidence in the market at the upcoming Las Vegas gathering.
He said his reasons for going to the U.S was because there have been “rumblings internationally” particularly to deal with companies that “mine and market our diamonds, the biggest in the world”.
Anglo American owns 85 percent of DeBeers and has lately been subject of purchase by others, the most active being BHP, the biggest miner in the world. They have also received a third bid, which they are reviewing.
Under the laws in the United Kingdom, where they are domiciled, they risk a hostile takeover, if they reject the third bid. That would open their shares to whosoever wants to buy to approach the shareholders directly.
“We are concerned as Botswana government and we are watching this very closely because whoever it is that buys Anglo American will then become owner of 85 percent of DeBeers, and the DeBeers are our strategic partner who we have been negotiating with and are at the tail end of signing the agreements with them”.
“So, we are very clear. We do not want a hostile owner,” Masisi said, adding that the reason he is travelling is to go and get “first-hand” assurances from the principal managers and owners of DeBeers in Las Vagas that they are committed to separating DeBeers from Anglo before Anglo is sold.
“It is in our interest; we are by far the biggest diamond producer in the world by value and there is no country for which diamonds mean more than they do for Botswana. Our whole budget, our livelihood is dependent on what happens to that industry”, he said. Secondly the President is travelling because this is the biggest show of diamond in the world.
“it means that all participants, all players in the downstream, the jewellery makers retailers, researchers’ marketers, technologists, everybody is going to be there including our opponents those who promote laboratory-grown diamonds “If we are the biggest by value, if DeBeers is under threat of being bought and we do not know by who, if diamonds mean as much as they do to Botswana, if America as it is, is the biggest market for our diamonds, there is no responsible President who will sit idly by and watch this go by”, Masisi said.
He said that one of the biggest threats is that if the leadership of Botswana is absent, the retailers and other participants might lose confidence and get taken over in the alliance by the lab-grown diamonds lobby.
“And if the Lab-grown diamonds have taken our space you and I are finished”, Masisi emphasised the ominous threat.
“That is why I go. It is a peaceful assault that I am going to wage. I am going there to give confidence to all who play in our space and to dampen anyone who is attracted to the lab-grown diamond industry and to reassure our partners – DeBeers and Anglo - right now that we are partners because we have an agreement that we have to finish off”, the President said.