Botswana seeing soft recovery in diamond demand, mines minister says
Botswana seeing soft recovery in diamond demand, mines minister says By Olivia Kumwenda-Mtambo and Brian Benza
JOHANNESBURG, June 23 (Reuters) - Botswana is seeing a soft recovery in diamond demand in key consumer markets such as the U.S. and China, its mines minister Bogolo Joy Kenewendo said on Tuesday, in part supported by a global marketing campaign for its natural diamonds.
Kenewendo said Botswana, where diamonds typically contribute about a third of its national revenue, will maintain supply discipline to support the struggling global gems market, despite fledgling signs of demand recovery in key markets.
The global market faces a prolonged downturn due to economic uncertainty and the growing popularity of lab-grown stones. Last year, Debswana Diamond Company, Botswana's joint venture with De Beers that accounts for 90% of the country's diamond sales, temporarily paused production at some mines.
"We have pushed through what was inventory in Botswana and we are now focusing on managing our run-of-mine," said Kenewendo, adding: "We are going to continue to be disciplined. We were happy to do so because everything in the market is about some level of discipline on our side."
DE BEERS SALE
Anglo American put De Beers up for sale as part of a broader restructuring amid falling diamond prices and the global rise of synthetic diamonds. It has attracted interest from Botswana, which already holds a 15% stake, Angola and Namibia.
Kenewendo said negotiations were in the "last stages", without providing further details, citing confidentiality clauses tied to the talks.
Angolan mines minister Diamantino Pedro Azevedo told Reuters on Monday that his government was "seeking a percentage that gives us a say in strategic matters," and that there was "perfect alignment" with Botswana on the De Beers sale.
De Beers CEO Al Cook said last week that a deal could come within weeks and the new ownership was set to be a public-private partnership.
Sources previously told Reuters there are two consortia still vying for stakes in De Beers, down from six in 2025.
The two remaining groups include governments of diamond-producing countries, former De Beers CEO Gareth Penny, now chair of asset manager Ninety One, a Qatari investment fund and Israeli businessman Nir Livnat, the sources said.
(Reporting by Olivia Kumwenda-Mtambo and Brian Benza; Additional reporting by Miguel Gomes in Luanda; Editing by Alexander Smith)
((Olivia.Kumwenda@thomsonreuters.com; +27 10 346 1084;))