Oppenheimer: Namibia License Renewal “Soon”

Prolonged talks between De Beers and the government of Namibia over renewed license to market Namibian mined diamonds are seeing “good progress” says De Beers Chairman Nicky Oppenheimer.

The marketing agreement ended last year, but negotiations between the world’s biggest diamond producer and Namibia, the world’s seventh largest diamond producing country, is yet to be signed. On Wednesday, Oppenheimer said, “They have been going on for some time now but really good progress is being made,” reported Reuters.

“Those [negotiations] are going well and we certainly hope to have those completed fairly shortly."

The points preventing the renewal of the licenses have not been officially revealed, however Namibia is interested in seeing more of its diamonds staying in the country for local polishing and added beneficiation. This has been a hot issue in the southern Africa countries. South Africa and Botswana also sought greater local beneficiation.

Heating up the topic, Israeli diamond magnate Lev Leviev has said that there is no reason why local goods should not be polished locally. He has already established a polishing plant, but has faced a shortage of “fitting goods,” which meant that he has had to ask his rival De Beers to supply him with the necessary goods.

Another possible issue preventing an agreement is royalties' payments. It is understood that the government of Namibia is interested in receiving higher royalties for their goods.