Botswana is reconsidering its proposed deal with HB Antwerp following Lucara Diamond’s termination of its sales agreement with the Belgian gem trader due to financial irregularities. President Mokgweetsi Masisi announced that the government is now reassessing the situation.
Earlier this year, Botswana, the world’s leading diamond producer by value, announced plans to purchase a 24% stake in HB Antwerp and provide the company with rough diamonds for five years through the state-owned Okavango Diamond Company. However, with Lucara Diamond terminating its agreement with HB Trading BV, a unit of HB Antwerp, Botswana is now reevaluating its involvement.
President Masisi clarified that Botswana had only reached an “agreement in principle” with HB Antwerp and had not yet signed a formal deal. The government is now determining the appropriate course of action given the recent developments.
HB Antwerp, a diamond processor and trader, recently removed one of its co-founders, Oded Mansori, from management due to disagreements over strategy. Mansori, who co-founded the company in 2020 with Shai de Toledo and Rafael Papismedov, plans to take legal action against his partners.
The sales agreement between HB Antwerp and Lucara Diamond was initially established in 2020 and extended for ten years in 2022. Despite terminating the agreement, Lucara Diamond has stated that it will continue selling its stones through its Clara diamond platform, traditional tenders, and other channels.
Botswana’s reassessment of the HB Antwerp deal highlights the government’s commitment to transparency and financial integrity in the diamond industry. As an influential player in the global diamond market, Botswana aims to uphold high standards and protect its interests in diamond trading. The outcome of the reassessment will have significant implications for Botswana’s future in the diamond trade and its partnerships within the industry.
Useful links:
– [Clara diamond platform](https://www.claradiamond.com/): Lucara Diamond’s platform for selling diamonds.
– [Okavango Diamond Company](https://www.okavangodiamondcompany.com/): The state-owned diamond company in Botswana.
