The potential acquisition of Anglo American, which owns 85 percent of De Beers, by Australia's BHP, coupled with the rising interest in lab-grown diamonds, poses a threat to Botswanas economy, according to President Dr. Mokgweetsi Masisi.
President Masisi emphasized that the country is wary of Anglo American being taken over by a hostile entity, particularly BHP, the worlds largest mining company.
Speaking at a media briefing in Gaborone yesterday before his departure to the USA and South Korea, the President explained that these trips aim to protect Botswanas interests.
He noted that his reason for visiting Las Vegas stemmed from international concerns about the largest companies mining and marketing Botswanas diamonds.
"The purpose is to get firsthand 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 mentioned that Anglo American had received a third bid currently under review, noting that under UK laws, if this bid is rejected, the company could face a hostile takeover.
"We, as the Botswana government, are concerned and are monitoring this closely because whoever acquires Anglo American will become the 85 percent owner of De Beers, our strategic partner with whom we are negotiating agreements," he said.
Despite fears of a hostile takeover, President Masisi mentioned the possibility of separating De Beers from Anglo American before any sale.
He stressed the importance of this issue to Botswana, the worlds leading diamond producer by value, noting the significance of diamonds to the country's economy and identity.
President Masisi highlighted that Botswanas budget and livelihood heavily depend on the diamond industry's performance.
The JCK Las Vegas diamond show, attracting all players in the diamond value chain, will provide him the opportunity to meet key stakeholders, including proponents of lab-grown diamonds.
"As the largest diamond producer by value, and with De Beers under threat of being bought, no responsible president would sit idle and let this happen," said President Masisi.
He warned that if Botswana's government is absent, downstream diamond business participants might lose confidence and align with the lab-grown diamonds industry.
"If lab-grown diamonds take over the natural diamond market, countries like Botswana would be doomed," he stated.
"This is why I am goingto wage a peaceful assault, to reassure all players in our space, and to dampen the enthusiasm for the lab-grown diamonds industry," he said.
Dr. Masisi also accepted an invitation to South Korea to attend the first Korea-Africa Summit.
He accepted the invitation because South Korea serves as a model of a knowledge-based economy that Botswana aims to emulate.
"I am also going there for diamonds, as South Korea has reportedly developed a new method to produce lab-grown diamonds quickly, and to protect our countrys interests," he said.
Dr. Masisi mentioned that Acting President, Mr. Slumber Tsogwane, will be traveling to Livingstone, Zambia today for the inaugural KAZA group Heads of States Summit.