08 Jul 2018

Government had an option to increase its stake in De Beers in 2012, but after extensive analysis of exercising such an option, it decided not to increase its stake in De Beers.

Minister of Mineral Resources, Green Technology and Energy Security, Mr Eric Molale said this when responding to a question in Parliament from the MP for Lobatse, Advocate Sadique Kebonang.

Mr Molale said ‘this position has not changed as increasing its stake in De Beers does not assist government in its aspirations to diversify away from minerals, more especially diamond.’

Parliament was further told that Debswana Master Agreement provides for profit splits of 80.8 per cent to 19.2 per cent for Botswana government and De Beers.

He said Mineral Development Company of Botswana (MDCB) is wholly owned by government and it was formed to manage, facilitate and advance government’s investment interest in the mineral sector.

“The company is currently funded through government subventions and this will continue until the company is in a position to sustain itself,” he said.

In addition, he said the ministry was currently reviewing the mandate of the company to enable it to better serve the interest of government.

Mr Molale said the outcome of the on-going review exercise would inform the ministry on how to structure the company should the need arise.

Advocate Kebonang had asked the minister if the government intends to acquire more shares in De Beers than its current 15 per cent and to state the current revenue split between the government and De Beers.

Advocate Kebonang also wanted to know what the future of MDCB is in its current form since it depends on government for its survival and whether there are any plans to restructure the company. BOPA