KEY POINTS
- HB Antwerp is scaling back its Botswana operations and undergoing “significant restructuring” after a promised rough diamond supply from Okavango Diamond Company failed to materialise.
- The unrealised 2023 deal, announced under former President Masisi, envisaged Botswana taking a 24% stake in HB Antwerp and supplying 10% of ODC’s output for five years; the firm had earlier warned of up to 80% job cuts.
- HB Antwerp says its technology and infrastructure investment exceeds $10 million and it will keep equipment in Botswana, while its Lucara Karowe model prices stones on estimated polished value.
Belgian gem trader HB Antwerp is scaling back its operations in Botswana after failing to secure rough diamond supplies from the state-owned Okavango Diamond Company, a senior company official told Reuters.
The retreat marks a setback for a high-profile partnership. Specifically, former President Mokgweetsi Masisi announced a deal in 2023 under which Botswana would take a 24% stake in HB Antwerp and supply the trader with 10% of ODC’s rough diamond output for five years. However, managing partner Boaz Lev said that commitment has yet to materialise despite repeated engagement with the government that took office in October 2024.
Restructuring underway
Lev framed the move as a necessary adjustment. According to Lev, the company is resizing to match current realities since the 2023 plan never came to fruition. Moreover, he said HB Antwerp would undergo “significant restructuring,” though he declined to give figures.
The warning signs surfaced months ago. Notably, the company told Botswana’s Commissioner of Labour last December that it could cut its workforce by up to 80% without ODC diamonds by the end of March 2026. Botswana’s mines ministry was not immediately available to comment, and the diamond workers union did not respond to a request for comment.
Staying, but smaller
Despite the cuts, Lev signalled a continued presence. According to Lev, total technology and infrastructure investment exceeds $10 million, and the firm will keep every machine in the country rather than shipping equipment back to Belgium. Furthermore, he said remaining staff would be able to operate all of it.
The dispute highlights HB Antwerp’s distinctive model. Founded in 2020, it has partnered with Lucara Diamond, buying stones of 10 carats and above from the Karowe mine at prices tied to each stone’s estimated polished value. Ultimately, HB Antwerp says this approach lets Lucara earn 40% more than selling at rough-diamond market prices, a model it had hoped to replicate with ODC.
