Botswana aims to negotiate bigger stake in HB Antwerp diamond dealer
13/08/2024 15:15
By Brian Benza
GABORONE, Aug 13 (Reuters) - Botswana intends 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, the
country's mines minister said on Tuesday.
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.
Lefoko Moagi told parliament the weaker diamond market had
also affected the company'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.”
Finance ministry budget documents showed in February that
the country had set aside 890 million pula ($65.95 million) for
the 24% stake, valuing the Belgian company at about $275
million.
The HB Antwerp deal was announced during Botswana's
negotiations for a new sales contract with Anglo American's
AAL.L 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
(ODC).
($1 = 13.4953 pulas)
(Reporting by Brian Benza; editing by Nelson Banya and Barbara
Lewis)
((Nelson.Banya@thomsonreuters.com;))