Cabinet has not approved a transaction for Namibia to purchase a part of the De Beers Group, the world’s leading diamond producer, which is currently owned by Anglo American (85%) and the Government of the Republic of Botswana (15%).
This is despite a media report last week, titled ‘Cabinet agrees to De Beers equity acquisition’ by one of Namibia’s daily newspapers.
The article claimed that Namibia is set to strike a deal with its neighbours, Botswana and Angola, to acquire shares in the De Beers Group, reportedly valued at about N$14.5 billion for a 10% to 15% stake in the global diamond company.
However, a media statement issued by the Ministry of Industries, Mines and Energy on Friday clarified that the newspaper article was incorrect.
“The ministry wishes to clarify that the information contained in the article is not accurate. While the Government of the Republic of Namibia continues to monitor developments in the global diamond industry, no such agreement to acquire equity in De Beers has been concluded or approved by Cabinet,” read the statement issued by the Executive Director in the ministry, Moses Pakote.
“Once all relevant stakeholders are aligned and formal decisions have been made, accurate information will be communicated through the appropriate official channels.”
The ED added that it is essential to note that any potential changes in the diamond sector are carefully assessed in the context of national imperatives, economic diversification, and sustainable GDP growth.
“In this context, the government remains committed to a balanced approach that considers the implications, opportunities and risks before any major decision is taken,” Pakote stated.
In this regard, the ED stated that the government is seized with ongoing consultations and engagements with relevant stakeholders to ensure any future decisions about the diamond industry are beneficial for both the industry and the Namibian nation.
Namibia and De Beers each own 50% of Namdeb Holdings, which produced approximately 2.2 million carats, accounting for about 9% of De Beers’ group output, in 2022.
Parent company, Anglo American, apparently intends to focus on copper and iron ore, which is the reason it has reportedly put De Beers up for sale. Anglo American has valued De Beers at approximately US$4.9 billion (over N$84 billion), following the recording of US$3.5 billion (more than N$60 billion) in impairments over the past two years.
Industry insiders shared that by June this year, De Beers had already attracted interest from at least six prospective investors, with Angola also bidding for a minority stake in the company. Industry news outlets report that Angola wants a broad ownership structure that would include Namibia, Botswana and South Africa, for De Beers.
-ebrandt@nepc.com.na