Africa-Press – Botswana. The possible acquisition of Anglo American which owns 85 per cent of De Beers by Australia’s BHP alongside the growing interest in lab grown diamonds is a threat to Botswana’s economy, says President Dr Mokgweetsi Masisi.
The President noted that one thing that the country did not wish for, was for Anglo American to be taken over by a hostile owner, in this instance BHP which was the world’s biggest mining company.
The President was speaking during a media briefing in Gaborone yesterday before his departure to the USA and South Korea and explained that the visits were therefore, meant to protect Botswana’s interests.
He noted that the persuasive reason for going to Las Vegas emanated from the rumblings that had been going on internationally particularly to do with the biggest companies in the world that mined and marketed Botswana’s diamonds.
The reason is to get first hand details from the principal managers and owners of both Anglo American and De Beers as I am scheduled to meet with them in Las Vegas, he said.
He said Anglo American had received a third bid that was currently being reviewed noting that under the UK laws where the company was based, if they rejected the third bid, they would be exposing themselves to a hostile takeover.
“We are concerned as Botswana government and we are watching this very closely because whoever buys Anglo American will become 85 per cent owner of De Beers, our strategic partner with whom we have been negotiating with and at the tail end of signing the agreements,” he said.
Despite the fear of Anglo American being taken over by a hostile owner, President Masisi said there was some assurance of separating De Beers from Anglo American before the latter was sold if the sale was to materialise.
He said the envisaged development was of interest to Botswana, as the country was the biggest diamond producer in the world by value, also sentimentally that there was no other country where diamonds meant a lot like they did to Botswana.
President Masisi’s words were premised on the fact that the country’s budget and livelihood was dependent on the performance of the diamond industry.
He explained that the JCK Las Vegas diamonds show, which would attract all players in the diamonds value chain would afford him the opportunity to meet with them, including the opponents who were promoting lab grown diamonds would be in attendance.
“If we are the biggest diamond producer by value and if De Beers is under threat of being bought, we do not know by who, they is no responsible president who will sit idle and watch this go by,” said President Masisi.
He said one of the biggest threats should Botswana government be absent was that retailers and those participating downstream of the diamonds business might then lose confidence and be taken over into alliance by the lab grown diamonds people.
President Masisi said if lab-grown diamonds were to take the natural diamonds space, countries like Botswana who would be doomed.
“This is why I am going. It is a peaceful assault that I am going to wage, also to give confidence to all who play in our space and to dampen spirit of those who are attracted to lab grown diamonds industry,” he said.
Dr Masisi further stated that he accepted invitation to South Korea, to attend Korea-Africa Summit, the first of its kind.
He said he acceded to the invite because South Korea was an example of a knowledge-based economy that Botswana wanted to emulate.
“I am also going there for diamonds because South Korea has allegedly developed a new invention which can produce lab-grown diamonds fastest and to protect the interests of the country,” he said.
Dr Masisi said Acting President, Mr Slumber Tsogwane will also be travelling on his behalf to Livingstone, Zambia today for the inaugural KAZA group Heads of States Summit.
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