De Beers Parent Company Anglo American Writes Down $1.6 Billion of Its Value

De Beers parent company Anglo American has written down the value of the diamond mining giant by $1.6 billion. De Beers is 85% owned by Anglo American and 15% by the government of Botswana.

"Our updated assessment of global GDP growth and consumer demand were the main factors behind our $1.6 billion write-down of our book value of De Beers, principally relating to goodwill," the company said in a statement.

De Beers and the government of Botswana also own 50% stakes in Debswana, a company operating the Jwaneng, Orapa, Letlhakane and Damtshaa mines and has a Corporate Centre in Gaborone. Debswana mines are responsible for approximately two-thirds of the De Beers’s annual production.

In July 2023, the two entities struck a 10-year deal which will see Botswana’s state-owned diamond trader, Okavango Diamond Company, receive 30% of the output from Debswana.  Moreover, the government disclosed that there is a tentative agreement to potentially increase its share of the stones to as much as 50% in the future.

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