Namibia is weighing whether to join a potential consortium with Angola to buy into diamond giant De Beers, as concerns grow over weakening demand and the rise of lab-grown gems.
Deputy Prime Minister and Minister of Industries, Mines and Energy Natangwe Ithete said the government will not rush into a decision. “The diamond industry is going down (…) so this is something we need to study very carefully, to determine whether it is worth pursuing or not,” he told local news outlet Mining and Energy.
Angola submitted a bid last week for a minority stake in De Beers, but has yet to approach Namibia. Ithete stressed that the delay was not a sign of tension. “We have very good collaboration with Angola. Maybe the communication has not yet come through, or maybe it is still to come. But what I can say is that we have a very good relationship with Angola.”
Botswana, which already owns 15% of De Beers, has said it wants a controlling stake. The diamond miner has also attracted interest from at least six other consortia, including Indian diamond houses, billionaire Anil Agarwal, and Qatari funds.
Long-standing partnership
Namibia and De Beers are long-standing partners through Namdeb Holdings, a 50-50 venture that operates land-based mines, and Debmarine Namibia, which runs marine mining. Namdeb produced 2.2 million carats of rough diamonds in 2024, accounting for 9% of De Beers’ total output. Their partnership includes a sales agreement and a deal signed in 2021 that extends operations to 2042.
Anglo American (LON: AAL), which owns 85% of De Beers, put the business up for sale in May 2024 after fending off a £39 billion ($49 billion) takeover bid from BHP.
The miner has since been restructuring, shedding non-core assets, and announced early this month it was pursuing a merger with Canada’s Teck Resources (TSX: TECK.A, TECK.B; NYSE: TECK) to build a copper powerhouse.
Anglo American values De Beers at about $4.9 billion, though recent $3.5 billion impairments and industry headwinds could push offers lower.
