De Beers Puzzled Over Angola Talks Failure

De Beers' producer relations manager, Richard Napier, expressed puzzlement over the break down of talks between De Beers and state-owned diamond company Endiama for the possible return of the miner to Angola.

The talks between the two were extended a number of times and according to Napier ended surprisingly. De Beers wanted a majority share of the company, saying, “after all, we were putting up all the capital and the expertise,” but that Endiama insisted that it should have majority control.

Talks apparently reached an impasse over the size of areas to have been explored by a joint venture between the two. And then talks ended.

“It seems clear that Endiama didn't reach this decision on its own. It was surprising that we thought we had reached some agreement with Endiama only to be told that wasn't the case," he told Reuters.

De Beers pulled out of Angola in May 2001 and was in a legal tangle that ended in a suspension of legal action and the decision to start talks that came to a halt in June.

Napier said De Beers has now resumed the arbitration with Angolan authorities. “We would like to be there, provided there's a sensible commercial contract - not at all costs," he concludes.