The Government has resolved to acquire shareholding in HB Antwerp of Belgium to fully optimise the value of the country’s diamonds and to enhance beneficiation and full participation of citizens in the diamond value chain.
Answering a question in Parliament on Tuesday (August 13th), the Minster of Minerals and Energy Lefoko Moagi said that the decision was taken after a number of considerations were made such as to enable independent price discovery for Okavango Diamond Company, which it has never had.
The decision was also taken to enable ODC to sell rough diamonds through the more commercially sustainable sales method of contracts after selling through auctions since its establishment.
“To give Botswana an ownership stake in proprietary cutting and polishing technology, including for small stones. This will enable a greater proportion of Debswana’s production, which is currently deemed not economically viable to be cut in Botswana and is therefore exported, to be beneficiated in Botswana using HB Antwerp’s proprietary technology,” the minister said.
The Leader of Opposition Dithapelo Keoratse had wanted Moagi to update Parliament on how the decision was taken to buy a stake in HB Antwerp, who took that decision, and how much stake will be acquired, and at what cost? Keorapetse also wanted to know if due diligence was taken, and where that report can be found.
“The new equity percentage is currently being negotiated from the initial 24 percent at the time of the announcement and in terms of the cost it is based on the initial cost. We are injecting more capital, but we will get more shares for the same amount proposed in 2023. This will enable Botswana to get more value for every Pula to be invested and get a large shareholding when the deal is closed,” Moagi explained.
The minister further noted that the company was established in 2021 and the Government did legal due diligence, financial duedeligenoe, and tax duedeligenoe performed by an independent company with a world class reputation.
The minister further said that HB Antwerp is a private company that is not listed in any Stock Exchange, owns 100 percent Genesis HB Botswana, which is registered in Botswana.
“Government will likely up their stake in HB Antwerp BV through Khumo Minerals Botswana, one of the three companies formed by government for the purpose of growing Botswana’s participation in the mineral value chains and in beneficiation,” said Moagi
