25 Jul 2019

Government has received over P49 billion as dividends from De Beers Group of Companies in the last five years.

Minister of Mineral Resources, Green Technology and Energy Security, Mr Eric Molale, told Parliament that the dividends were from De Beers, where government has 15 per cent shareholding, and from Debswana Diamond Company, where government has 50 per cent shareholding.

He said Debswana dividends were received from the profit split of 80.8 per cent government  and 19.2 per cent De beers saying his ministry was satisfied that they were financially viable and dividends were declared by the boards of each of the companies taking into consideration the cash needs of the business.

Mr Molale said in the case of the De beers, dividends paid were affected by significant cash requirements for the past five years such as new investments at Gahcho Kue Diamond Mine in Canada and a new vessel for DebMarine in Namibia.

He said the expansion projects by Debswana, being Cut-8 in Jwaneng and the Letlhakeng Tailings Treatment Plant had also added to the expenditure on new investments.

MP for Tati West Mr Biggie Butale had asked the minister how much government  received as annual dividends for the past five years from De beers group of Companies and if the investment in De Beers group of Companies was of financial value in relation to dividend received and whether the rate of return vis-à-vis investment made was financial viable. ENDS