Belgian gem trader HB Antwerp is scaling back its Botswana operations after failing to secure rough diamond supplies from state-owned Okavango Diamond Company (ODC), a senior company official told Reuters.
Former Botswana President Mokgweetsi Masisi announced a deal in 2023 to acquire a 24% stake in HB Antwerp and supply the trader with 10% of ODC’s rough diamond output for five years.
HB Antwerp’s managing partner Boaz Lev told Reuters the commitment announced in 2023 had yet to materialise despite repeated engagement with the government that took office in October 2024.
“We are performing restructuring and resizing work to match with what we currently have, since whatever was foreseen in 2023 has not materialised to date,” Lev said.
He declined to provide numbers, but said the company would undergo “significant restructuring.”
Botswana’s mines ministry was not immediately available to comment.
Last December, the company notified Botswana’s Commissioner of Labour it could cut its workforce by up to 80% if it did not receive rough diamonds from ODC by the end of March 2026.
Founded in 2020, HB Antwerp has partnered with Lucara Diamond Corp (TSX: LUC), buying diamonds of 10 carats and above from the miner’s Karowe mine in central Botswana at prices linked to the estimated polished value of each stone, determined using scanning and planning technology.
HB Antwerp says this model, which it had hoped to replicate with ODC, allows Lucara to earn 40% more than selling at rough-diamond market prices.
Lev said consultation on the restructuring had been under way for two months and was expected to conclude within days.
“Our total technology and infrastructure investment exceeds $10 million. We are not sending any machine back to Belgium, and the people who will stay here will be able to operate everything,” he said.
The Botswana Diamond Workers Union did not immediately respond to a request for comment.
(Reporting by Brian Benza. Editing by Nelson Banya and Mark Potter)
