Nam backs diamond producers’ association

MINISTER of Mines and Energy, Erkki Nghimtina, and Diamond Commissioner Kennedy Hamutenya are in Luanda, Angola, to join their counterparts from six diamond-producing African countries to discuss the forming of a diamond cartel, as the countries seek more control of their natural resources.

The meeting, which starts today, will see government ministers and representatives from Angola, Botswana, the Democratic Republic of Congo, Namibia, South Africa and Zimbabwe discussing the need for an African Diamond Producers Association (ADPA) and how they can increase their influence on the US$13,1 billion (around N$92 billion) world market for rough gems. These countries produce more than half of the world’s diamonds by value.Bloomberg last week quoted the DRC Deputy Mines Minister, Victor Kasongo, as saying the notion to form an association was initiated by producers last year.”We will establish the Opec of diamonds,” Kasongo was quoted as saying.”We will form united diamond policies, so that we have more power in the international arena.”The 12-member Organisation of Petroleum Exporting Countries (Opec), influences oil prices by regulating the production of over 40 per cent of the world’s supply.Kasongo’s views highlight speculations of frustration among African diamond producers who believe they are reaping the fruits of their resources, while countries like India, Israel and Belgium are getting most of the cake as the masters of the diamond trade.Hamutenya said Cabinet had sanctioned that Namibia should become part of ADPA, saying the country was way ahead of its counterparts when it came to beneficiation, regulating, monitoring and controlling the diamond industry, and would assist fellow members on a number of issues.This week Parliament ratified the statutes of the ADPA, proving Namibia’s willingness to be part of this watershed group.”With regards to forming a syndicate, the attitude of many African producers today is that we want to be in control of our destiny.We know that other people from other countries want our diamonds for their own growth and development agendas, and that some of their interests and our interests diverge,” he said.He went on to say pricing was a sensitive matter that affected all stakeholders, from the miners to retailers.”Today price is no longer artificial and supply driven as in the days when De Beers had a huge stockpile and could dictate price…That is why driving consumer demand is a major element in influencing price today.”This association does not come without its problems.Hamutenya indicated that some diamond bigwigs in Belgium did not want to see the establishment of ADPA, but added that Africans were not fazed by this attitude.”Many ADPA members are now averse to dictates from people with vested interests in our diamond industry.At plenary in Luanda, we can talk about anything we want under the sun, as long as it has to do with our diamonds.What members agree on is limited by the mandates they bring along from their capitals,” said Hamutenya.The Diamond Commissioner also noted that South Africa’s new laws for the diamond mining sector would not affect the region negatively, but instead benefit diamond producers as they were a precedent in maximising benefits from SADC’s natural resources.”They (SA) are not in conflict with us.Some of the things they want to do there are things we are doing here in Namibia.That is why in our ADPA objectives we talk about harmonisation of our policies and legislation.Our interests are very much aligned,” he said.ADPA’s objectives include promoting cooperation among members in policies concerning exploration, mining, cutting and polishing, developing human resources, exchanging information between member states, trading and transforming conflict diamonds into diamonds of peace.The Luanda meeting will also look into issues that continue to plague the industry such as conflict diamonds, beneficiation, the threat posed by synthetics and smuggling.Angola, Botswana, DRC, Namibia and South Africa are said to have accounted for 60 per cent of last year’s world diamond output.These countries produce more than half of the world’s diamonds by value.Bloomberg last week quoted the DRC Deputy Mines Minister, Victor Kasongo, as saying the notion to form an association was initiated by producers last year.”We will establish the Opec of diamonds,” Kasongo was quoted as saying.”We will form united diamond policies, so that we have more power in the international arena.”The 12-member Organisation of Petroleum Exporting Countries (Opec), influences oil prices by regulating the production of over 40 per cent of the world’s supply.Kasongo’s views highlight speculations of frustration among African diamond producers who believe they are reaping the fruits of their resources, while countries like India, Israel and Belgium are getting most of the cake as the masters of the diamond trade. Hamutenya said Cabinet had sanctioned that Namibia should become part of ADPA, saying the country was way ahead of its counterparts when it came to beneficiation, regulating, monitoring and controlling the diamond industry, and would assist fellow members on a number of issues.This week Parliament ratified the statutes of the ADPA, proving Namibia’s willingness to be part of this watershed group.”With regards to forming a syndicate, the attitude of many African producers today is that we want to be in control of our destiny.We know that other people from other countries want our diamonds for their own growth and development agendas, and that some of their interests and our interests diverge,” he said.He went on to say pricing was a sensitive matter that affected all stakeholders, from the miners to retailers.”Today price is no longer artificial and supply driven as in the days when De Beers had a huge stockpile and could dictate price…That is why driving consumer demand is a major element in influencing price today.”This association does not come without its problems.Hamutenya indicated that some diamond bigwigs in Belgium did not want to see the establishment of ADPA, but added that Africans were not fazed by this attitude.”Many ADPA members are now averse to dictates from people with vested interests in our diamond industry.At plenary in Luanda, we can talk about anything we want under the sun, as long as it has to do with our diamonds.What members agree on is limited by the mandates they bring along from their capitals,” said Hamutenya.The Diamond Commissioner also noted that South Africa’s new laws for the diamond mining sector would not affect the region negatively, but instead benefit diamond producers as they were a precedent in maximising benefits from SADC’s natural resources.”They (SA) are not in conflict with us.Some of the things they want to do there are things we are doing here in Namibia.That is why in our ADPA objectives we talk about harmonisation of our policies and legislation.Our interests are very much aligned,” he said.ADPA’s objectives include promoting cooperation among members in policies concerning exploration, mining, cutting and polishing, developing human resources, exchanging information between member states, trading and transforming conflict diamonds into diamonds of peace.The Luanda meeting will also look into issues that continue to plague the industry such as conflict diamonds, beneficiation, the threat posed by synthetics and smuggling.Angola, Botswana, DRC, Namibia and South Africa are said to have accounted for 60 per cent of last year’s world diamond output.