The sale of diamond company De Beers is moving closer to a deal, The South African reported. The National Union of Mineworkers (NUM) said 1,134 permanent jobs at its Venetia mine in Limpopo are at risk.
Another 80 jobs at the De Beers sorting facility in Johannesburg are also under threat. Most Venetia workers live in the Musina and Blouberg areas of far northern Limpopo.
Anglo chief executive Duncan Wanblad told CNBC in July that the company was “very much at the final stages” of the sale. He hopes to sign by the end of 2026.
The jobs are at risk because De Beers announced a two-year production pause at Venetia in July. The company said the pause was meant to cut costs. Venetia, near Alldays, is the only De Beers mine in South Africa. It produces about 40% of the country’s diamonds.
Anglo put De Beers up for sale in May 2024. Since then, falling diamond prices and the rise of lab-grown stones have pulled its value down sharply. The Botswana government owns the remaining 15% of the company.
In July, Bloomberg reported that the deal could be worth about $1 billion (R16.5 billion). That would be $750 million (R12.4 billion) up front and $250 million (R4.1 billion) later, plus payments based on performance. The terms are not final. In 2001, De Beers was valued at $17.6 billion (R290 billion).
Botswana’s government said in July that the Global Diamond Consortium was the preferred bidder for Anglo. Wanblad has said the company is not exclusive with any bidder.
The consortium is led by Gareth Penny, who ran De Beers from 2006 to 2010. It includes the governments of Namibia and Angola, as well as several large diamond traders.
Luxury group Richemont, chaired by South African billionaire Johann Rupert, was reportedly in talks in October to join the consortium as a minority investor. US jewellery retailer Signet Jewelers was also named in those reports.
Members of the leading bidding group reportedly met Anglo and Botswana representatives in London in the last week of October. The meeting was held to settle differences over the terms.
One sticking point is the share held by Botswana. The country is weighing a move from 15% to about 25%. The final ownership structure, the financing and the binding terms all remain unresolved.
Unlike Botswana, South Africa holds no stake in De Beers and has no right of first refusal. Its main power would likely come through regulators, the report said.
Section 12A of the Competition Act requires authorities to consider “the effect that the merger will have on” a list of factors, including “employment”.
Even if the deal is signed by the end of 2026, regulators around the world could take about a year to approve it.
Source: this article is based on reporting by The South African. Image: The South African. Written with the help of AI and published by the Tzaneen Voice Business desk. See our Editorial Standards.
Anelisa Nkuna covers business and money news for Tzaneen Voice. Anelisa reports on the rand, fuel prices, interest rates, jobs, Eskom, Transnet, farming and company results. The aim is simple: explain what the numbers mean for household budgets, small businesses and workers in South Africa.