De Beers’ CEO speaks
Mbongeni Mguni | Tuesday August 5, 2025 09:27
Speaking exclusively to Mmegi this week after engagements with Boko as well as Minerals and Energy minister, Bogolo Kenewendo, Cook said all hands were on deck towards resuscitating demand for diamonds.
“I am very impressed by the way that President Boko, Minister Kenewendo, PSP (Emma) Peloetletse, have worked for the government and with us to maintain the value of diamonds, even as they manage the cash flow of Botswana in the way that the people of Botswana expect them to,” he said.
Cook continued: “It's a challenge, yes, because they have to preserve the value of the future of Botswana, the natural endowment that Botswana has – this extraordinary resource that can support the country for decades to come – with the understandable needs of this country. “Frankly, I think that President Boko is doing a magnificent job in the face of those challenges.”
De Beers has discounted its diamonds, allowed greater flexibility to buyers at its sales events and cut back on production, in order to support demand for the precious stones in the roughly 21 months that the industry has been in a slump.
Inventories at the diamond giant built up to an estimated $2 billion last year, as demand on the retail end slowed, a situation that Boko recently alluded to. The President, on two occasions, said he had given De Beers a deadline to sell all stones mined in Botswana in 2024, regardless of the impact in terms of flooding the market or pricing. This, he said, was necessary in order to ease the fiscal crunch, the new government is battling.
Without directly speaking to the inventories or any deadline, Cook said both De Beers and government were focussed on balancing both value in the industry and cash flow.
“Diamond demand has been on a downturn, probably the worst downturn we've had since the 1930s. “So that naturally puts financial pressure both on De Beers and on the government and that produces challenges, fiscal and financial challenges. “So I actually believe that in the face of all of those challenges, both the government and De Beers have actually done a good job in the way that we've sold diamonds, and in the way that we've balanced price, value and volume. “I'm here in Botswana today and have had very constructive meetings with the government. “I think the best thing is the strength of the partnership between the world's leading diamond country and the world's leading diamond company. “That's a strong partnership that has withstood more than half a century and will be successful through the next half century.”
Cook revealed that in the first six months of the year, both De Beers and the Okavango Diamond Company (ODC) had bought their full allocations from Debswana. The purchases are key as they allow Debswana to keep pumping revenues to government and maintain the thousands of direct and indirect jobs it is responsible for.
Debswana only has two customers – De Beers and the ODC – which purchase rough diamonds on a 70/30 split annually. However, this commitment has also come at a pain in the diamond downturn, as the two customers purchase at a certain price, then struggle to sell due to the pressure in the market.
“Both ODC and De Beers have continued to sell very responsibly. “We are owned partly by the government of Botswana and so it's important for us to understand how we can support Botswana through what's a very challenging period. “Today in Gaborone, I reiterated my commitment that we work together with our government partners and our government owners to do our utmost to stand by Botswana,” Cook said.
Besides the downturn in sales, De Beers is also facing uncertainty from the divestment of its long-time majority shareholder, Anglo American, which presently holds 85% in the diamond group. Speculation has grown in recent months about the potential takeover partners, as well as the Government of Botswana’s own desire to increase its stake in the diamond group.
Government presently owns 15% of De Beers and is eager to increase that stake.
“My main focus and the focus of De Beers needs to be on creating value for our shareholders, whoever they are, in whatever proportion they hold shareholdings. “And that means focusing on our operations, focusing on maintaining a viable company, a focus on safety. “I'd like to give particular credit actually to Andrew Motsomi, the MD of Debswana and his leadership team and give them particular credit for the way they're managing through this downturn, producing efficiently, managing very tough financial challenges, but always putting the safety, the environment and regulatory compliance first and foremost. “So credit goes to them for the way they're leading Debswana through this challenging period.”