De Beers will sell its 50% stake in Botswana’s sole coal mine to the government as part of a plan by the diamond producer’s parent company Anglo American to whittle down its commodities portfolio.
The CEO of Minerals Development Company of Botswana (MDCB) Paul Smith said on Friday that the diamond producer’s stake will be transferred to the newly formed MDCB, but declined to reveal the price of the stake.
De Beers’ holds the stake in Morupule Coal Mine (MCM) through Debswana Diamond Mining Company, a joint venture with the government of Botswana.
The mine produces 3.2 million tonnes of coal a year.
Anglo shut its Mmamabula coalfields in Botswana this year, in line with a plan by the London-listed firm to sell off certain assets but retain diamond producer De Beers, platinum and its copper units.