De Beers Talks with Endiama Halted Again

Talks between De Beers and Endiama over the miners return to Angola have been halted as the moratorium expired and not extended. De Beers’s negotiator John Hughes has left Luanda and is now in Johannesburg.

The two sides last agreed to extend the moratorium in March until the end of April. At the time both sides said the Moratorium had been extended on the basis of the steadily improving relationship between the two parties and continuing good progress with their discussions.

The negotiations, which began in October 2002, are intended to resolve any disputes between Endiama and De Beers and to conclude new contracts that will lead to mutually beneficial co-operation.

De Beers is interested in a joint venture with Endiama for exploration and mining rights for Angolan diamonds, which would then be marketed by De Beers.

Since De Beers suspended its Angolan operations in 2001, Ascorp, a state-owned monopoly partly owned by Israeli diamond dealer Lev Leviev, has marketed all Angolan diamonds. Recently it seems that Leviev may lose his controlling grip on the exports of Angolan rough and the country will grant several export licenses.

Talks of ending Ascorp’s monopoly have been heard on occasions, however despite sporadic reports, government approved a plan to end Ascorp's four-year monopoly and even licenses given to a number of companies, the monopoly is still in place.