Local diamonds not yet flowing freely

THE Namibian Diamond Trading Company (NDTC) says it is yet to distribute rough gems to local diamond cutting and polishing companies, as it is still setting up its operations.

NDTC was formed earlier this year at the signing of the new sales agreement between the Government and De Beers. The company was established to improve supply of rough gems to local companies, by providing 16 per cent of Namdeb’s diamonds to the local market.In an interview with The Namibian, NDTC board member Daniel Kali said machines were still being imported and installed during the setting-up phase.”There is a lot of work that needs to be completed before this process can commence.Not least of which is NDTC’s technical readiness.We are currently installing the appropriate machinery and technology and will be commissioning soon.”At the same time, we need a clear and robust supply criterion.All this work is happening at the moment,” he said.Kali could not say when the NDTC would start functioning.The country’s largest diamond cutting and polishing firm, LLD Diamonds Namibia, has bemoaned the lack of supply of rough gems, and has been calling for Namdeb to provide gems to local companies directly.A local daily this week quoted LLD General Manager Mike Nesangano as saying that they had not heard from NDTC and were still importing rough diamonds from Israel for their business.Before the setting up of NDTC, Namdeb sent the lion’s share of its rough diamonds to the Diamond Trading Centre in London for sorting and selling to selected firms around the world.Last year, Namdeb reached a milestone by producing two million carats of diamonds, and the company aims at 2,8 million carats per year from 2010.Sixteen per cent of two million would translate to 320 000 carats a year for the Namibian market, and expectations are that the turnover of the Namibian diamond-processing industry could reach up to N$2 billion by 2009.This local value adding would also create much-needed jobs and boost economic growth.Kali said NDTC had received a good response to its invitation to companies to register their interest in receiving diamonds from NDTC.”We are satisfied with the response and will soon commence on the next step of engaging those who have expressed such interest on the detail of their interest,” said Kali, adding that the company wanted to ensure it was ready for “this important task of supply”.The two NDTC shareholders – the Government and De Beers – have appointed an implementation committee which consists of representatives from both shareholders to look at all aspects of making NDTC operational in the shortest possible time.To date, NDTC has held two board meetings and a third board meeting will take place next month.The board is made up of Shihaleni Ndjaba (chair), Erica Shafudah, Theo Saunderson and Festus K Mbandeka for the Government, and Varda Shine, Brian McDonald, Mike Page and Daniel Kali for De Beers.Kali said the Board was currently finalising the management of the company.”Remember that the mandate and task of NDTC is something new to Namibia.There are a lot of mechanisms that must be put in place to ensure that NDTC can deliver on its mandate with professionalism and with due regard to the laws of the Republic of Namibia,” said Kali.The company was established to improve supply of rough gems to local companies, by providing 16 per cent of Namdeb’s diamonds to the local market.In an interview with The Namibian, NDTC board member Daniel Kali said machines were still being imported and installed during the setting-up phase.”There is a lot of work that needs to be completed before this process can commence.Not least of which is NDTC’s technical readiness.We are currently installing the appropriate machinery and technology and will be commissioning soon.”At the same time, we need a clear and robust supply criterion.All this work is happening at the moment,” he said.Kali could not say when the NDTC would start functioning.The country’s largest diamond cutting and polishing firm, LLD Diamonds Namibia, has bemoaned the lack of supply of rough gems, and has been calling for Namdeb to provide gems to local companies directly.A local daily this week quoted LLD General Manager Mike Nesangano as saying that they had not heard from NDTC and were still importing rough diamonds from Israel for their business.Before the setting up of NDTC, Namdeb sent the lion’s share of its rough diamonds to the Diamond Trading Centre in London for sorting and selling to selected firms around the world.Last year, Namdeb reached a milestone by producing two million carats of diamonds, and the company aims at 2,8 million carats per year from 2010.Sixteen per cent of two million would translate to 320 000 carats a year for the Namibian market, and expectations are that the turnover of the Namibian diamond-processing industry could reach up to N$2 billion by 2009.This local value adding would also create much-needed jobs and boost economic growth.Kali said NDTC had received a good response to its invitation to companies to register their interest in receiving diamonds from NDTC.”We are satisfied with the response and will soon commence on the next step of engaging those who have expressed such interest on the detail of their interest,” said Kali, adding that the company wanted to ensure it was ready for “this important task of supply”.The two NDTC shareholders – the Government and De Beers – have appointed an implementation committee which consists of representatives from both shareholders to look at all aspects of making NDTC operational in the shortest possible time.To date, NDTC has held two board meetings and a third board meeting will take place next month.The board is made up of Shihaleni Ndjaba (chair), Erica Shafudah, Theo Saunderson and Festus K Mbandeka for the Government, and Varda Shine, Brian McDonald, Mike Page and Daniel Kali for De Beers.Kali said the Board was currently finalising the management of the company.”Remember that the mandate and task of NDTC is something new to Namibia.There are a lot of mechanisms that must be put in place to ensure that NDTC can deliver on its mandate with professionalism and with due regard to the laws of the Republic of Namibia,” said Kali.