Namibia Now Says It Wants De Beers Stake

Namibia’s cabinet has voted on a proposal for the country to take a stake in De Beers, according to a report in the Namibian Sun.

The newspaper said Namibia was interested in acquiring as much as 10% to 15% of the company, possibly in a consortium with Angola and Botswana, which have both expressed interest in owning De Beers. Previously, Namibian officials seemed skittish about whether to join them.

“We are interested, but there remain concerns about our financial capacity to afford a stake,” an unnamed official told the Sun. “We are talking to Angola and Botswana to join forces. All three countries recognize that none of them alone can secure a significant share.

“The idea is for the three countries to jointly own a majority in De Beers. Through the Luanda Accord [to fund industry marketing], we aim to strengthen the market for natural diamonds and ensure we remain key decision-makers in the global diamond trade.…

“We have superior, high-quality diamonds,” the official continued. “We cannot afford to be left out.”

De Beers runs Namibia’s diamond mining operations, Namdeb, as 50/50 partners with the government.

In his State of the Nation address last week, Botswana president Duma Boko reiterated that the country was taking “concrete steps” toward acquiring Anglo American’s share in De Beers. Anglo currently owns 85% of De Beers, while the government of Botswana holds the other 15%.

Top: A diamond mining operation in Namibia (photo courtesy of Namdeb)