New Target for Leviev: Lobbying For Botswana Production

Israeli diamond magnate Lev Leviev has a new target in his sights - securing a portion of Botswana’s diamond production. In a recent article in the country’s leading paper, the Daily News, Boometswe Mokgothu, Botswana’s Minister of Minerals, Energy and Water Affairs, reported that Leviev has proposed the establishment of a diamond cutting operation in the country to the Botswana government.

The key question not answered in the article, however, is just where Leviev intends to secure the rough to be manufactured in what is reported to be a facility that would be capable of processing a significant quantity of rough.

Leviev recently opened what is described as “Africa’s biggest diamond-polishing factory” in Namibia, an operation with the capacity to employ 550 workers. According to the Daily News, Leviev is offering to build “a far larger factory in Botswana, employing tens of thousands”.

Botswana has just two diamond polishing operations, Diarough which bought Temane Manufacturing company last year and Schachter and Namdar Botswana in Molepolole. While the proposal to establish such a facility is still in the early stages of negotiations, representatives of LLD, Leviev’s diamond company, have already made several trips to Botswana to lobby officials to approve such a venture. And, according to highly placed sources, Leviev is pushing for a percentage of the country’s run of mine production to be made directly available to the plant for manufacturing.

Currently, Botswana has an exclusive agreement with De Beers regarding the marketing of all its rough output. Any such deal with Leviev could only be negotiated once this agreement finishes its term. Recently, the De Beers’ lease on the country's foremost diamond producing mine, the Jwaneng Mine came up for renewal and the automatic renewal of the lease with De Beers was not forthcoming. Leviev is obviously hoping that the same situation will apply to the De Beers-Botswana marketing agreement.

A senior Botswana official told IDEX Magazine that Leviev is pushing for some 30 percent of Botswana’s rough production to be made available to the open market following the termination of the De Beers’ agreement. Leviev, himself, has yet to visit the country to speak with officials regarding his proposal and, noted the Botswana official, “is expecting an invitation from the government” before traveling to the diamond-rich state.

During a recent visit to New York, Leviev met with a high-level representative of the Botswana government who has close ties to senior officials at the World Diamond Council and Kimberley Process. Leviev was told that the Botswana government “does not issue invitations as such, but Leviev would be most welcome to visit the country and speak with relevant authorities regarding the issue”. The message to Leviev was that he would be “warmly received”.