Botswana wants a bigger slice of HB Antwerp diamond dealer

Gaborone — Botswana plans to renegotiate its proposed purchase of a stake in Belgian gem dealer HB Antwerp to double the size of its shareholding, at no extra cost, following the downturn in the diamond market.

Minister of minerals & energy Lefoko Moagi told parliament on Tuesday the weaker diamond market had affected HB Antwerp’s valuation, giving the country room to renegotiate.

“We will not be injecting more capital, but we will get more shares for the same amount proposed in 2023,” Moagi said. “Instead of the 24%, we will negotiate to get 49.9% for the same amount initially proposed.”

Botswana is the world’s biggest diamond producer by value, meaning its economy has been disproportionately hit by a drop in demand for diamonds caused by a global economic slowdown.

Finance ministry budget documents showed in February that the country had set aside 890-million pula ($65.95m) for the 24% stake, valuing the Belgian company at about $275m.

The HB Antwerp deal was announced during Botswana’s negotiations for a new sales contract with Anglo American’s diamond unit De Beers in March 2023.

As Botswana sought to increase its power to market its stones outside a decades-old agreement with De Beers, it said the HB Antwerp deal would strengthen its presence in the downstream diamond industry.

It includes supplying the trader with rough diamonds for five years through the state-owned Okavango Diamond Company.

Botswana is a 15% shareholder in De Beers and accounts for 70% of the company’s annual rough diamond supply.

Reuters