De Beers happy with changes to diamond law

DIAMOND giant De Beers, which had warned of dire consequences from a South African diamond law, said on Wednesday it was pleased with changes made before it was passed on Tuesday.

The law seeks to increase the supply of diamonds to local gem cutters to boost the domestic jewellery sector, especially among blacks, and create jobs. Gareth Penny, due to take over as De Beers managing director next year, told a diamond conference in Namibia that the revised legislation would not prevent the group’s marketing arm from pursuing its key strategy of mixing worldwide production centrally.The firm, 45 per cent owned by mining group Anglo American, had earlier warned during legislative hearings of the possible demise of its powerful marketing unit if the Diamonds Amendment Bill passed.”We were pleased with the process…the main suggestions that were put forward were incorporated by the committee,” Penny said.”The law does not preclude us from operating an aggregated business model.”De Beers made strong objections to a proposed 15 per cent export duty, which it said could make some low-quality production uneconomic and possibly lead to mine closures.But the duty was removed from the bill and will be considered in separate legislation by the Treasury.De Beers hopes the duty law will include exemptions so that small diamonds not viable to polish in South Africa can be exported.”The bill will be conditional on the passage of the money bill, which is of course extremely crucial to ensure that appropriate exemptions are in place …for goods that cannot be manufactured profitably,” Penny said.”We feel that the final outcome is one on which we can certainly cooperate with the department of minerals and energy.”-Nampa-ReutersGareth Penny, due to take over as De Beers managing director next year, told a diamond conference in Namibia that the revised legislation would not prevent the group’s marketing arm from pursuing its key strategy of mixing worldwide production centrally.The firm, 45 per cent owned by mining group Anglo American, had earlier warned during legislative hearings of the possible demise of its powerful marketing unit if the Diamonds Amendment Bill passed.”We were pleased with the process…the main suggestions that were put forward were incorporated by the committee,” Penny said.”The law does not preclude us from operating an aggregated business model.”De Beers made strong objections to a proposed 15 per cent export duty, which it said could make some low-quality production uneconomic and possibly lead to mine closures.But the duty was removed from the bill and will be considered in separate legislation by the Treasury.De Beers hopes the duty law will include exemptions so that small diamonds not viable to polish in South Africa can be exported.”The bill will be conditional on the passage of the money bill, which is of course extremely crucial to ensure that appropriate exemptions are in place …for goods that cannot be manufactured profitably,” Penny said.”We feel that the final outcome is one on which we can certainly cooperate with the department of minerals and energy.”-Nampa-Reuters