De Beers agrees diamond deal with Central Africa

BANGUI – Diamond producer De Beers has signed an agreement with the Central African Republic to explore for diamonds in the east of the country, state officials and the company said on Friday.

A De Beers spokeswoman said the deal covered an area of some 35,000 square km and both sides had agreed to keep the terms confidential. But local diamond industry officials said it was for 25 years and foresaw an investment of US$100 million.Cyriaque Gonda, secretary general for the Central African branch of the Kimberley Process which aims to stop diamonds being used to fund armed conflicts, said the firm would be modelled on ventures in Botswana, South Africa and Namibia.”The agreement is based on financing of US$100 million and allows the creation of an exploration and exploitation company in which the Central African State will have a 30 percent stake,” he told Reuters.Mining Minister Sylvain Doutingai said the project would enable the Central African Republic to increase diamond output dramatically.”The prospects are pretty good,” he declared.He said the country produced had 500 000 carats in 2003 and already produced some 300 000 in the first half of this year.Diamond industry officials estimate that the true totals are twice as high as the official figures because many diamonds from the impoverished country, which has a history of coups and armed rebellions, and are sold illegally.Anglo American Plc, the world’s third biggest diversified mining company, owns 45 percent of De Beers.- Nampa-ReutersBut local diamond industry officials said it was for 25 years and foresaw an investment of US$100 million.Cyriaque Gonda, secretary general for the Central African branch of the Kimberley Process which aims to stop diamonds being used to fund armed conflicts, said the firm would be modelled on ventures in Botswana, South Africa and Namibia.”The agreement is based on financing of US$100 million and allows the creation of an exploration and exploitation company in which the Central African State will have a 30 percent stake,” he told Reuters.Mining Minister Sylvain Doutingai said the project would enable the Central African Republic to increase diamond output dramatically.”The prospects are pretty good,” he declared.He said the country produced had 500 000 carats in 2003 and already produced some 300 000 in the first half of this year.Diamond industry officials estimate that the true totals are twice as high as the official figures because many diamonds from the impoverished country, which has a history of coups and armed rebellions, and are sold illegally.Anglo American Plc, the world’s third biggest diversified mining company, owns 45 percent of De Beers.- Nampa-Reuters