Botswana's contract with De Beers, which controls 80% of the world diamond market, has expired and Botswana wants to partly sell independently. The government is also looking at a possible sale of its stake in Anglo American Platinum, an Australian mining company, but it remains unclear whether that would be enough for investors who want their money back. IDC, an independent who markets diamonds for four countries, refutes this and argues Botswana doesn't know the real value of its diamonds, which represent half De Beers' profits. Botswana faces a budget deficit. In 1987 it sold its diamond stockpile to De Beers for $250 million and a 5.27% share.
Botswana's contract with De Beers, which controls 80% of the world diamond market, has expired and Botswana wants to partly sell independently. It is the only major diamond producer currently selling total production to De Beers, who argues independent selling would compromise the cartel's ability to preserve an orderly market. IDC, an independent who markets diamonds for four countries, refutes this and argues Botswana doesn't know the real value of its diamonds, which represent half De Beers' profits. Botswana faces a budget deficit. In 1987 it sold its diamond stockpile to De Beers for $250 million and a 5.27% share.