In February 1908, Joseph Asscher, a master diamond cutter, made history by cleaving the Cullinan, the largest diamond ever found, at his workshop in Amsterdam. The diamond was so tough that it split Mr. Asscher’s blade on his first attempt. This event once again captivated the diamond industry with a dramatic separation.
Recently, Anglo American, the most important company in the diamond industry, announced a radical restructuring plan on May 14th. Despite rejecting a takeover proposal from BHP, the world’s largest miner, Anglo American plans to sell its coal, nickel, and platinum operations. Additionally, the British mining firm will divest its 85% stake in De Beers, with Botswana owning the remaining shares. BHP has until May 29th to submit a new offer for Anglo.
The change in ownership of De Beers marks the end of a longstanding relationship, with Ernest Oppenheimer, Anglo American’s founder, joining its board in 1926. This move represents the most significant shake-up in the diamond industry since 2000 when De Beers shifted its strategy away from controlling diamond prices by managing supply.