De Beers, Botswana hold talks on ‘landmark’ deal

JOHANNESBURG – The world’s biggest diamond producer, De Beers, said it held more high-level talks last week with Botswana over a “landmark” deal to boost the local jewellery sector and launch a joint-venture sales arm.

Talks have dragged on for over a year as Botswana, the nation that produces the most diamonds by value, seeks to create more jobs by adding value instead of merely exporting raw gems. “At a high-level meeting between the government of Botswana and De Beers last week, further discussions were held on a number of issues,” De Beers told Reuters in an e-mailed reply to an inquiry.The issues included the Jwaneng mine, joint venture arrangements with De Beers’ sales arm the Diamond Trading Company (DTC), and a “road map” for a local jewellery industry.In December 2004, Botswana renewed De Beers’ lease for the Jwaneng mine, the world’s richest in terms of value, but left some details to be hammered out in a final agreement.De Beers said nearly a year ago it agreed with Botswana to create a local sales arm and several months later said it planned to relocate DTC’s diamond mixing centre from London to Gaborone.Botswana’s diamonds are mined by Debswana, a 50-50 joint venture between De Beers and the government, but up to now marketing has been handled only by the London-based DTC.De Beers, 45 per cent owned by mining giant Anglo American, said it had also had more talks about the “management of local supply”.Botswana and other regional diamond producers, South Africa and Namibia, have all demanded that De Beers provide some diamonds locally instead of shipping them all to London where they are distributed to selected clients.The results of the talks with Botswana are expected to be announced in the second quarter, the statement said.”Due to the complexity of the issues and the landmark nature of the new arrangements, the parties have agreed to announce the details only once they have been finalised,” it added.Botswana’s diamond industry accounts for about a third of gross domestic product, around 85 per cent of exports and nearly half of government revenues.-Nampa-Reuters”At a high-level meeting between the government of Botswana and De Beers last week, further discussions were held on a number of issues,” De Beers told Reuters in an e-mailed reply to an inquiry.The issues included the Jwaneng mine, joint venture arrangements with De Beers’ sales arm the Diamond Trading Company (DTC), and a “road map” for a local jewellery industry.In December 2004, Botswana renewed De Beers’ lease for the Jwaneng mine, the world’s richest in terms of value, but left some details to be hammered out in a final agreement.De Beers said nearly a year ago it agreed with Botswana to create a local sales arm and several months later said it planned to relocate DTC’s diamond mixing centre from London to Gaborone.Botswana’s diamonds are mined by Debswana, a 50-50 joint venture between De Beers and the government, but up to now marketing has been handled only by the London-based DTC.De Beers, 45 per cent owned by mining giant Anglo American, said it had also had more talks about the “management of local supply”.Botswana and other regional diamond producers, South Africa and Namibia, have all demanded that De Beers provide some diamonds locally instead of shipping them all to London where they are distributed to selected clients.The results of the talks with Botswana are expected to be announced in the second quarter, the statement said.”Due to the complexity of the issues and the landmark nature of the new arrangements, the parties have agreed to announce the details only once they have been finalised,” it added.Botswana’s diamond industry accounts for about a third of gross domestic product, around 85 per cent of exports and nearly half of government revenues.-Nampa-Reuters