African Diamond Producers Eye Stake in De Beers After Anglo Stake Sale
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Botswana, Angola, and Namibia have expressed interest in acquiring stakes in De Beers, the world's largest diamond producer by value, following Anglo American's agreement to sell its 45% holding to private equity-backed PNCI. The African governments view participation as strategic to secure long-term revenue from gem production amid falling rough prices and lab-grown competition. De Beers CEO Al Cook confirmed approaches from the trio during a January 7 investor call.
Anglo's exit values De Beers at roughly $37 billion post-transaction, with PNCI—backed by Vital Capital and other Gulf funds—taking control alongside the Oppenheimer family retaining 45%. Botswana, which produces 25% of De Beers' diamonds via Debswana JV, seeks greater say over marketing and pricing after years of revenue disputes. Angola's state-owned Endiama and Namibia's Namdeb similarly aim to boost national content.
The interest coincides with De Beers' pivot to natural diamonds positioning, including sightholder system reforms and rough allocation adjustments. Cook noted African partners' push for transparency in sales amid 2025's 20% price drop. PNCI has signaled openness to minority stakes, potentially valuing sovereign participation at $5-10 billion combined.
De Beers faces structural challenges with lab-grown penetration reaching 18% of US retail and polished prices down 35% since 2022 peaks. Production cuts of 2 million carats in 2025 aim to balance supply. African producers supplied 120 million carats last year, representing 95% of global rough.
Investor appetite for diamond miners remains cautious, with Anglo's breakup unlocking value but exposing De Beers to sovereign risk. Successful African entry could stabilize revenue sharing but raise governance questions in a consolidating sector.
