Table of Contents
Key Points
- Botswana challenges Anglo American’s De Beers sale, citing lack of consultation on divestment of the diamond industry giant.
- The government considers buying Anglo’s De Beers stake, exploring options to secure Botswana’s strategic diamond mining interests.
- Anglo restructures after BHP takeover defense, targeting profitability amid earnings slump and planned 2025 De Beers sale or IPO.
Anglo-American, a diversified global mining giant led by South African executive Duncan Wanblad, is facing mounting backlash from Botswana over its planned sale of diamond giant De Beers. The southern African nation, which owns 15 percent of De Beers, believes it was not adequately consulted on the divestment, according to people familiar with the matter.
Botswana is exploring options, including acquiring Anglo’s stake in De Beers, as the government works with advisers to secure its strategic interests, the people said, requesting anonymity as the talks remain private.
Restructuring drive after BHP takeover defense
The sale forms part of a sweeping restructuring led by Wanblad following Anglo’s successful defense against a takeover attempt by BHP Group Ltd. in 2024. Since taking the helm in April 2022, Wanblad has sought to improve profitability by streamlining operations and offloading non-core assets.
Anglo is evaluating a direct sale or an initial public offering (IPO) of De Beers, with completion targeted by 2025. Founded in 1917, Anglo American operates across platinum, diamonds, copper, nickel, iron ore, polyhalite, and steelmaking coal. De Beers, established in 1888, remains a cornerstone of the global diamond industry with operations spanning Botswana, Namibia, South Africa, and Canada.
Earnings slump intensifies pressure
Anglo’s portfolio overhaul comes against a backdrop of sharply deteriorating financials. Headline earnings plunged 65 percent to $875 million in 2024 from $2.5 billion the prior year, while the company swung to a $3.07 billion net loss from a $283 million profit. The restructuring aims to stabilize returns and refocus capital on higher-yield assets.
Before this tension over the sale, Anglo had reinforced its decades-long ties with Botswana. De Beers recently secured a 10-year diamond sales agreement and a 25-year extension of Debswana’s mining licenses, cementing its role in shaping Botswana’s diamond sector for the next decade.
Future of Botswana-Anglo partnership uncertain
As Botswana recalibrates its diamond trade strategy, the dispute over the De Beers sale underscores the delicate balance between the nation’s economic ambitions and Anglo’s restructuring priorities. For Wanblad, maintaining trust with Botswana—a critical partner in De Beers—may prove as pivotal as securing the right buyer or IPO path.
