GABORONE,

Oil company BP Plc, the biggest supplier in Botswana, said yesterday the group's planned exit from the country would be smooth, allaying fears of supply disruptions to the world's biggest diamond mines.

BP said this month it would sell its assets in five southern African countries including Botswana as a result of a strategic review, causing jitters in the crucial diamond sector, but the British group said its exit would not be disruptive.

Botswana's minerals sector accounts for 40 per cent of total output and the same proportion of Botswana's government revenue.

BP Botswana general manager Mahube Mpugwa said the company, which supplies the Debswana diamond mines, a copper mine and Air Botswana, expected its pull out could take up to 18 months to complete.

"I can't divulge any number or names at the moment, but we have received many enquiries from both the region and overseas. These are all being handled by our acquisitions and mergers division in London," Mr Mpugwa told Reuters.

Debswana owns Jwaneng, the biggest diamond mine in the world by value, and the operation is currently undergoing a $500 million expansion which will require a lot of fuel.

Debswana is a 50/50 joint venture between the government of Botswana and De Beers, which is 45 per cent owned by global mining group Anglo American PLC, and averages an annual output of around 33 million carats of diamonds.

"We have been engaging BP during the last few weeks on this subject, and assurances have been made by BP that they will honour their obligations to Debswana," Ms Esther Kanaimba, Debswana's spokeswoman, said.

BP, which is also pulling out from Zambia, Malawi, Tanzania and Namibia, has been in Africa for over 80 years, and has operated in Botswana as an independent company since 1975 when it split from Royal Dutch Shell Plc.
Potential buyers of BP's assets could include Engen Ltd., majority owned by Malaysia's Petronas, and Kenya's KenolKobil.

Add this page to your favorite Social Bookmarking websites