De Beers Group diamond company has announced it is to relocate its auction business headquarters from Singapore to Botswana in a bid to streamline its operations.
In a statement, De Beers Group mentioned that the move to Gaborone supports its commitment to developing Botswana's diamond industry.
“Our Global Sightholder Sales business has successfully operated in Botswana for 11 years, so it is a logical and positive move to transfer our Auctions business to the country,” said De Beers Group CEO Al Cook during a statement.
“This move will drive cost efficiencies and support our customers’ needs. I am confident that it will also support the further development of the vibrant diamond sector in Botswana,” he went on to add.
In the same statement, Emma Peloetletse, permanent secretary to the president of Botswana, commented: “The relocation of De Beers’ auctions business to Botswana underscores Botswana’s growing role as a global hub for the diamond industry and will further enhance our economy and bolster skills development in the sector.”
During the relocation process, the firm’s auctions will be temporarily halted. De Beers' main sales and sorting arm has been located in Gaborone since 2013.
The relocation seems unrelated to recent announcements that Australian miner BHP has made a bid for De Beers’ majority owner Anglo American, and that Anglo American may attempt to sell De Beers.
It was reported last week by the Wall Street Journal that Anglo American has been in talks with “luxury houses and Gulf sovereign-wealth funds” about the possibility of selling its 85% stake in the diamond miner.
The other 15% is held by the government of Botswana.
“Anglo has signalled to potential suitors that it is open to offers,” the report states. “An eventual buyer might be a combination of a luxury house and a financial investor.”
In addition, the Financial Times reported that “Anglo American has sounded out potential buyers of De Beers including Gulf sovereign-wealth funds, luxury houses, and wealthy individuals in recent weeks, according to two people familiar with the matter.”