NDTC in full flight next month

THE Namibian Diamond Trading Company (NDTC), a 50-50 joint venture between the Government and De Beers, will next month announce the list of applicants who will have qualified to purchase the company’s rough diamond.

The new sales agreement signed between the Government and De Beers in January will ensure that up to N$2 billion worth of diamonds will be made available locally by 2009; representing close to five per cent of Namibia’s Gross Domestic Product. Paulus Shituna, Sales and Marketing Manager of NDTC, in an interview with The Namibian yesterday, said 18 applications had been handed in during the timeframe allocated for applications, and the company was currently going through a selection process.The successful applicants – local cutting and polishing factories – will be announced on October 29 and be granted three-and-half-year contracts.”The selection criteria are divided into parts and applicants have to meet these,” said Shituna.Factors that will be scrutinised before a company gets approval include ownership, job creation, skills transfer and a turnover of at least US$5 million (N$36 million).NDTC, said Shituna, is looking at making available 10 per cent of Namdeb’s rough gems to local diamond companies, while the rest of the supply will be sourced from De Beers’ London-based Diamond Trading Company.Shituna said this was necessitated by the need to have a constant supply for clients, adding that the ‘diamond industry is a complex one’.The NDTC is expected to sort and value some two million carats in a year.NDTC is expected to be a step towards beneficiation of local gems, hence establishing a Namibian brand, and will support local marketing strategies.Shituna believes the skills base is there to manufacture finished diamond products which can compete on the international market.But he cautioned that Namibia has to set its parameters of competing internationally, saying the country was not yet able to compete against countries such as China and India – whose labour costs were much lower.”Labour is one of the issues here in Namibia.It’s very expensive, and labour determines the cost base,” said Shituna.Paulus Shituna, Sales and Marketing Manager of NDTC, in an interview with The Namibian yesterday, said 18 applications had been handed in during the timeframe allocated for applications, and the company was currently going through a selection process.The successful applicants – local cutting and polishing factories – will be announced on October 29 and be granted three-and-half-year contracts.”The selection criteria are divided into parts and applicants have to meet these,” said Shituna.Factors that will be scrutinised before a company gets approval include ownership, job creation, skills transfer and a turnover of at least US$5 million (N$36 million).NDTC, said Shituna, is looking at making available 10 per cent of Namdeb’s rough gems to local diamond companies, while the rest of the supply will be sourced from De Beers’ London-based Diamond Trading Company.Shituna said this was necessitated by the need to have a constant supply for clients, adding that the ‘diamond industry is a complex one’.The NDTC is expected to sort and value some two million carats in a year.NDTC is expected to be a step towards beneficiation of local gems, hence establishing a Namibian brand, and will support local marketing strategies.Shituna believes the skills base is there to manufacture finished diamond products which can compete on the international market.But he cautioned that Namibia has to set its parameters of competing internationally, saying the country was not yet able to compete against countries such as China and India – whose labour costs were much lower.”Labour is one of the issues here in Namibia.It’s very expensive, and labour determines the cost base,” said Shituna.