Angola Pursues Strategic Stake in De Beers Diamond Business
Angola is actively pursuing a 20% to 30% stake in Anglo American's diamond unit De Beers, according to a senior official from the country's mining ministry. This proposal is currently being discussed with other diamond-producing African nations, as revealed in an exclusive interview with Reuters on Sunday.
De-Risking Luxury Commodity Investment
Paulo Tanganha, Angola's national director of mineral resources, explained the strategic reasoning behind targeting a minority stake rather than majority control. "Taking the majority stake within luxury commodities is very dangerous because it depends on the market," Tanganha stated during the African mining conference in Cape Town. "So to de-risk that, we have to have a portion that is sustainable for our economy. And that range between 20% and 30%, we are happy about that."
The move comes as Anglo American is selling De Beers amid significant challenges facing the diamond industry, including falling diamond prices and the increasing global competition from synthetic diamonds. De Beers, one of the world's leading diamond companies, operates across multiple countries including Botswana, Namibia, Angola, South Africa, and Canada.
Potential Bidding War with Botswana
Angola's initial bid for a majority stake in De Beers in October 2025 had positioned the country for a potential bidding war with neighboring Botswana, which currently owns 15% of De Beers and has expressed interest in acquiring majority control. This competitive situation has prompted diplomatic negotiations among African diamond-producing nations.
Closed-door talks are ongoing between Botswana, Angola, Namibia, and South Africa to establish a common position on how each country would benefit from holding stakes in De Beers. Tanganha emphasized the collaborative approach, stating, "There is a saying: together we are stronger. That's the way we are doing it. And if my neighbour is suffering, I also suffer. So we have to be together and fight together as a team."
Angolan Entities and Funding Strategy
For Angola, the state-owned diamond miner Endiama and its national diamond trading company Sodiam would acquire the stake in De Beers on behalf of the government. While Tanganha did not disclose specific funding mechanisms for the acquisition, he confirmed that Angola has multiple sources of funding available for this strategic investment.
The timing coincides with Anglo American's announcement on Thursday that it is reviewing the value of the De Beers diamond business following a drop in rough diamond production during 2025. This valuation reassessment comes as the diamond market faces unprecedented challenges from both economic factors and technological alternatives.
Geological Promise and Recent Discoveries
Angola's interest in De Beers is bolstered by recent geological discoveries within the country. Last year, De Beers' joint Angolan venture with Endiama discovered a new kimberlite cluster, marking the first such discovery in three decades. Kimberlite, a rare rock type where diamonds are commonly found, attests to the significant geological potential of Angola, which remains vastly under-explored despite its diamond resources.
This strategic move represents Angola's effort to secure a sustainable position in the global diamond industry while navigating the complex dynamics of international commodity markets and regional cooperation among African diamond-producing nations.
