De Beers to Separate from Anglo American in Strategic Restructuring

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The multinational mining company Anglo American, holding an 85% interest in De Beers, is about to divest its diamond mining and jewelry subsidiary.

Posted on May 28, 2024

Anglo American, the British multinational mining company, issued a press release on May 14 sharing its intentions to introduce some major structural changes to simplify the company’s portfolio and ensure growth in the “green” energy future. Among other things, the restructuring involves divesting or demerging De Beers, the world’s leading diamond company. This step is taken for both De Beers and Anglo American to reach management excellence and become more flexible in their strategic decisions.

According to De Beers CEO Al Cook, the company will be committed to achieving maximum efficiency “for all our stakeholders, including our partners in Botswana, South Africa, Namibia, Canada, Angola, and other countries.” In the statement, the CEO expressed his confidence that some things won’t change – the company won’t lose its leading position in the diamond industry; moreover, with new ownership, he sees new prospects coming. The demand for rough diamonds is experiencing an increase and brings positive perspectives and confidence to the business.

Al Cook announced that De Beers will release a new strategy by the end of this month. However, the previously reached new sales agreement with the Government of the Republic of Botswana, “who hold a 15 percent ownership interest in De Beers”, will be settled.
No matter what, diamonds are still the most in-demand and valuable products in the world, and Al Cook feels thrilled that the company takes every opportunity to introduce the allure of these precious stones to future generations.

Anglo American is going to divest or demerge four of its businesses as a part of its portfolio and structure reformation. This shift in focus, towards copper and premium iron ore, is designed to maximize value for the investors. Besides De Beers, the company is planning to sell Steelmaking Coal, Nickel, and Anglo American Platinum Ltd. businesses. As stated in the press release, Anglo American Platinum is supposed to be demerged with the best intentions in pursuit of the company’s interests to boost value for stakeholders of Anglo American and Anglo American Platinum.

Anglo American mining industry | ​De Beers to Separate from Anglo American | News | Olertis

As Anglo American Platinum has been the only patron of the Platinum Guild International (PGI) USA and PGI Japan since spring 2023 and PGI India since 2016, it raised questions regarding the way future restructuring may affect the relationships. The statement issued by Platinum Guild International avoids making any comments regarding the company’s decisions. The Guild holds on to its strategic plans and ensures the creation of incremental value for platinum. The jewelry industry covers a third of the world’s platinum demand and strongly influences the platinum mining industry, which makes market development the main focus of PGI.

Tim Schlick, the CEO of PGI since April 2024, mentioned that the general policy is transparent and straightforward – “create ounces and value for our sponsors and partners that otherwise would not exist.” This is the company’s most attractive proposition within the sector.


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