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De Beers is likely to be sold to a public-private consortium, according to the head of the diamond group’s majority owner Anglo American, after several African countries expressed interest in taking stakes.

Duncan Wanblad, chief executive of the London-listed mining group, said he hoped to wrap up the sale of De Beers this year despite the deteriorating diamond market.

“We are relatively far advanced” in the sale process, which would “almost certainly” result in the government of Botswana taking a greater ownership stake in the company, he told the FT. 

The company is nearing the end of the second stage of the bidding process, in which it will identify its preferred buyer, which would “probably be a consortium” composed of both government and private entities, he said. 

The sale of the struggling diamonds unit is part of a radical restructuring plan that Anglo undertook after fending off a hostile takeover bid by rival miner BHP in 2024. But it comes in the context of a challenging market for the precious stones amid a slowdown in luxury spending by Chinese consumers and competition from cheaper, lab-grown diamonds. 

Anglo this month warned that it may be forced to write down the value of De Beers again — for the third time in three years — when it announces its annual results next week. 

The government of Botswana is a key player in the sale process, given its existing 15 per cent stake in De Beers that President Duma Boko has been vocal about wanting to increase.

In addition, the Angolan government has expressed an interest in buying a slice of the company, with officials telling reporters on the sidelines of this week’s Indaba mining conference in South Africa that the state aimed to take a 20-30 per cent stake. 

Namibia, which produces about a tenth of De Beers’ diamonds, has also been weighing whether to bid for a minority stake in the company, according to people close to the process.

Wanblad said Botswana was “the key determinant here because they are a key shareholder in the business”. 

Given the “tough” diamond market that continued to worsen last year, the timeline for finalising the sale process would depend “on the timing of financing, more than anything else”, he said.

“I’m still hoping that it’s going to get done this year,” he added.

Anglo had initially said it aimed to complete either a sale or a public listing of De Beers by the end of 2025.

In addition to the competition from lab-grown alternatives, the diamond industry suffered last year from US import tariffs on India — which is a major polisher of the stones. That meant the material had not been “flowing as naturally”, Wanblad said. 

Once Anglo has identified its preferred bidder, the company will negotiate terms with the individual or consortium and the government of Botswana. 

While Anglo’s sale of De Beers has drawn criticism from some analysts who believe it is selling at the bottom of the market, Wanblad said it would proceed regardless.

“We should really focus on the stuff that makes the best returns for our shareholders, and it wouldn’t be holding on to De Beers,” he said.