Botswana has announced it is in talks to increase its shareholding in De Beers, as Anglo American prepares to end its nearly century-long relationship with the iconic diamond producer.

Last month, Anglo revealed a turnaround plan to fend off an approach from BHP Group, which includes selling or separating De Beers, where it holds an 85% stake. Botswana, which owns the remaining 15%, also hosts the company's largest diamond mines.

"We are going to increase the shares that we have in De Beers," stated Botswana President Mokgweetsi Masisi at a political rally in Palapye, about 300 km north of the capital, Gaborone.

President Masisi added that the government would play a crucial role in selecting a new investor to replace Anglo at De Beers. He emphasized that the new investor would need to be prepared for the cyclical nature of the diamond business.

This volatility has caused frustration within Anglo, as De Beers's erratic performance has negatively impacted returns from more stable commodities like copper. Last year, De Beers made just $72 million, though its traditional profits have ranged between $500 million and $1.5 billion, reflecting the diamond industry's boom and bust cycles.

De Beers CEO Al Cook aims for an annual core profit of $1.5 billion by 2028, as part of a business overhaul. This includes renewing the focus on promoting natural diamonds, discontinuing a venture into lab-grown gems, and expanding its retail presence through its own jewelry stores.

Additionally, De Beers plans to start polishing its own diamonds, an area currently dominated by mostly family-run firms in India and Belgium.