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Local media warns Namibia against buying a stake in De Beers

Local media reported that Namibia is considering whether to buy a stake in De Beers due to the continued decline of diamond prices, according the deputy prime minister.

Anglo American has put the diamond giant up for sale as it restructures to focus its portfolio on iron ore and copper. Anglo announced on September 9th that it is pursuing a merger to create a heavyweight in copper.

De Beers attracted at least six investors by June, and Angola’s state diamond company Endiama revealed on September 24 that it had bid to acquire a minority share in the company.

Angola wants De Beers to be owned by a large group of countries, including Botswana and South Africa, where it operates.

Namdeb Holdings produced 2.2 million rough diamonds carats in 2024. This is about 9% of the group's output last year.

Natangwe Ithete is Namibia's deputy prime minister and also responsible for mining. He told The Brief, an online financial news publication, that the country must assess its diamond industry. Its prospects are dimmed by synthetics diamonds and a weak demand.

"To be honest the diamond industry is in decline. It's no secret that the diamond industry is being affected and under pressure by so-called "lab diamonds", the synthetic diamonds," Ithete stated.

He added, "We need to carefully study this to decide if it's worth pursuing."

Botswana is also interested in acquiring a controlling stake in De Beers. It holds 15% of the company.

Anglo American values De Beers around $4.9 billion after recording $3.5 in impairments for the last two years. However, current market pressures could lead to lower offers. (Reporting and editing by Nelson Banya, Emelia Sithole Matarise, and Nyasha Nyaungwa)

(source: Reuters)