Sourcing

Anglo American Confirms It Is Looking to Sell De Beers

SourcingMay 20, 2024

Anglo American Confirms It Is Looking to Sell De Beers

The mining giant also wants to offload its platinum business as part of an overhaul designed to “unlock significant value.”

Rough diamonds from De Beers
Anglo American plc confirmed Tuesday that diamond mining company De Beers will be “divested or demerged” as part of a broader restructuring designed to simplify its portfolio.
Editor’s note: This story was updated post-publication to include a statement from Platinum Guild International. 

London—Anglo American is looking to offload both De Beers Group and its platinum business as part of a proposed restructuring that would streamline the company and position it as a major player in the “green” energy future.

In a statement issued Tuesday, the London-based mining giant outlined a plan that involves divesting or demerging De Beers in order to “improve strategic flexibility for both De Beers and Anglo American.”

De Beers followed up shortly with its own statement in which CEO Al Cook said he is “confident” the company will remain the diamond leader “for the next century.”

He said: “Today’s announcement from Anglo American opens up new possibilities under new ownership. But some things will not change. We will continue to deliver value for all our stakeholders, including our partners in Botswana, South Africa, Namibia, Canada, Angola, and other countries.

“In particular, we look forward to finalizing our transformational agreement with the Government of the Republic of Botswana, who hold a 15 percent ownership interest in De Beers.” 

He said De Beers will unveil a new strategy later this month.  

“Diamonds remain some of the most desired products around the world, and I am excited by the opportunity we have to bring their magic to a new generation,” Cook said. 

“With the ongoing recovery in rough diamond demand, and such a positive outlook for the sector, I feel very confident in our future.”

De Beers is one of four businesses Anglo is looking to sell off as it focuses on copper—a key element for renewable energy infrastructure and electric vehicles—and premium iron ore, which is used in steel decarbonization.

Also listed for divestment were the company’s steelmaking coal, nickel, and Anglo American Platinum Ltd. businesses.

Under the proposed plan, Anglo American Platinum is to “be demerged in a responsible and orderly way to optimize value for both Anglo American’s and Anglo American Platinum’s shareholders.”

In a statement shared with National Jeweler, the Platinum Guild International (PGI) said while it cannot comment on any corporate decisions Anglo American or Anglo American Platinum make, it remains focused on its strategy—creating incremental value for platinum.

In May 2023, Anglo American Platinum became the sole sponsor of PGI USA and PGI Japan. It has been the sole source of funding for PGI India since 2016, while PGI China remains funded by a consortium of South African platinum producers.

PGI said it expects market development to remain a key focus of the platinum mining industry, with jewelry, which represents a third of global platinum demand, playing a strategic role in it.

Tim Schlick, the new CEO of PGI, said: “Our strategy is clear and simple: create ounces and value for our sponsors and partners that otherwise would not exist. This stays front and center and I believe is a highly compelling value proposition to the industry.”

 Related stories will be right here … 

Anglo American Chief Executive Duncan Wanblad said the proposed restructuring would bring about the most radical set of changes the company has undergone in a decade but believes they are the right decisions to position Anglo for the future.

“Of course, we are conscious of the impacts of making such far-reaching changes, particularly on our employees. We see considerable opportunities for our employees, both in delivering the full potential of Anglo American and in the businesses that we will be divesting or demerging, all of which are high- quality businesses in their own right,” he said.

Anglo American announced its restructuring plan one day after it confirmed it had received a second unsolicited, non-binding takeover bid from BHP Group Ltd. on May 7. 

Like the previous BHP offer that Anglo American rejected on April 26, this latest proposal is an all-share offer that calls for Anglo American to offload both Anglo American Platinum and Kumba Iron Ore Ltd. to its shareholders. 

Though the May 7 bid is 10 percent higher, $43 billion vs. the $39 billion offered in April, Anglo said it still undervalues the company and its future prospects.

It also still has “significant execution risks” for shareholders, given the complexity of demerging both its platinum business and its iron ore business in South Africa, both of which would involve lengthy approval processes. 

The board unanimously rejected BHP’s proposal, with the company noting that the board is “confident in Anglo American’s standalone future prospects.” 

The Latest

Reese Witherspoon, Tyler James Williams, and Aja Naomi King at the 2024 Emmys
EditorsSep 17, 2024
8 Award-Winning Looks from the Emmys

Associate Editor Natalie Francisco highlights the best jewelry looks from the 76th Primetime Emmy Awards.

20240917_GIA pearl header.jpg
GradingSep 17, 2024
GIA To Include Traceability Info on Some Cultured Pearl Reports

The lab will include reference numbers on reports for cultured pearls that contain bead nuclei embedded with an RFID tag.

National Jeweler columnist Lilian Raji
ColumnistsSep 17, 2024
The PR Adviser: The Case for Switching to Shopify

Lilian Raji offers advice to a reader frustrated with the current state of their company’s website.

How to Increase Instagram Followers Naturally in 2024 2.0 (1).jpg
Brought to you by
How to Increase Instagram Followers Naturally in 2024

Growing your Instagram following organically is more important than ever in today's technological environment.

Issa Rae Cast Jewelry collection
EditorsSep 17, 2024
Q&A: Issa Rae on Her New Jewelry Collection With Cast

The actress shared her inspiration for the collection, insight into her personal style, and which jewels President Barbie would wear.

Weekly QuizSep 12, 2024
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Stock image of a gavel
CrimeSep 16, 2024
New Jersey Jeweler Pleads Guilty To Evading Customs

Monishkumar Kirankumar Doshi Shah admitted to dodging customs duties on more than $13.5 million of jewelry imported into the U.S.

Boucheron’s Madison Avenue storefront and interior
MajorsSep 16, 2024
Boucheron Opens First US Store in New York City

The new boutique is located on Madison Avenue.

Supplier Spotlight -Recorded-Webinar.png
Brought to you by
Watch: Natural Diamonds: A Great (but Often Untold) Geology Story

Supplier Spotlight Sponsored by GIA.

Gübelin lab Bangkok
GradingSep 16, 2024
Gübelin Opens Lab in Bangkok

The company’s fourth location worldwide will focus on its AI-powered gem document, the Gem Passport.

JA Multifaceted Learning Workshop
Events & AwardsSep 16, 2024
JA Takes Its Learning Workshops to Washington D.C., New York

Its next event will take place in D.C. on Sept. 17 and in New York City on Oct. 29.

Taylor Swift VMAs 2024
EditorsSep 13, 2024
Taylor Swift Brings Diamonds, Edgy Jewels to her VMAs Looks

The artist opted for big yellow diamond earrings, a vintage chain, and white metals at the annual MTV awards show.

Breitling NFL watches for AFC North Conference
WatchesSep 13, 2024
Breitling Inks Licensing Deal with the NFL

The Swiss watchmaker has created limited-edition timepieces for all 32 National Football League teams.

Cartier Black Alley Cat Brooch
AuctionsSep 13, 2024
Piece of the Week: Cartier’s ‘Black Alley Cat’ Brooch

This carved jasper and yellow-diamond-eyed cat brooch from 1962 is the perfect accessory for Friday the 13th.

Zales 100th anniversary marketing campaign
FinancialsSep 12, 2024
Signet Jewelers’ Q2 Sales Fall 8%

The jewelry giant said it expects to see an uptick in engagements in the second half of the year.

gia-supplierbulletin 0824.png
Supplier BulletinSep 12, 2024
Meet Gemology’s Next Generation Microscope: GIA® Gemolite® NXT Professional Edition

Sponsored by Gemological Institute of America

Mignon Faget’s Legacy Collection Campaign
CollectionsSep 12, 2024
Mignon Faget Enters a New Era With Its ‘Legacy’ Collection

The brand is celebrating its upcoming 55th anniversary with modern designs that pay tribute to its history.

JCK Industry Fund logo
Events & AwardsSep 12, 2024
JCK Industry Fund Accepting 2025 Grant Applications

Those interested can apply online now through Nov. 15.

Cartier Panthère watch
WatchesSep 11, 2024
These Are the Watches Women Want, Says Chrono24

Its “Her-ology” report highlights trends in the women’s luxury watch market, from top brands to movement preferences.

Marrow Fine x Adalina Martini and Tennis Necklace
IndependentsSep 11, 2024
Take a Sip of Marrow Fine x Adalina’s $13K Martini

The smoked heirloom tomato mezcal martini, only available at Adalina in Chicago, is served with a 9-carat diamond tennis necklace.

Lightbox loose lab-grown diamonds
Events & AwardsSep 11, 2024
Lab-Grown, Natural Diamonds to Be Focus of AGS Confluence

Scheduled for Sept. 25, the online-only event will be open to non-AGS members this year, for a fee.

Brilliant Earth Showroom Fairfax Virginia
MajorsSep 11, 2024
Brilliant Earth Expands International E-Commerce

Customers in more than 150 countries can now shop at the jewelry retailer’s online store.

Gems Keep Giving
Policies & IssuesSep 11, 2024
Gems Keep Giving Reorganizes, Taps Hayley Henning as Board Chair

The organization, which was started by the International Colored Gemstone Association, is now a 501(c)(3).

 Jeffrey Lynn High
IndependentsSep 10, 2024
Industry Technology Visionary Jeff High Dies at 60

The Gemvision founder is remembered as a passionate mentor with a deep love for God.

Foundrae Golden Hour Campaign
CollectionsSep 10, 2024
Foundrae’s Latest Collection Harnesses the Glow of the Golden Hour

The “Golden Hour” collection was designed to “inspire and encourage reflection,” said the brand.

Movado When I Move You Move campaign
MajorsSep 10, 2024
Ludacris, Jessica Alba Star in New Movado Campaign

Movado has named five new brand ambassadors, featuring them in its new “When I Move You Move” campaign.

Carol Woolton
TrendsSep 10, 2024
Carol Woolton To Release New Book

The jewelry historian discusses the history and cultural significance of jewelry throughout time and across the globe.

US Senator Dianne Feinstein
AuctionsSep 09, 2024
US Senator Dianne Feinstein's Jewels Going to Auction

Bonhams will offer more than 70 pieces of the late dignitary’s jewelry next month.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy