Shrenuj Botswana Buys Plant, Granted a DTC Botswana Sightholder

In a highly unusual move, DTC Botswana (DTCB) has appointed Shrenuj Botswana (Pty) Limited as a DTC Botswana Sightholder. The Sight has been granted a year after the contract period started in 2008. Shrenuj, according to sources in Botswana, is replacing DDA Of Botswana (PTY) LTD after it bought its polishing plant.

According to DTCB, the decision to grant Shrenuj the Sight was made “in order to support the sustainability of diamond manufacturing capacity within Botswana,” DTCB said Wednesday in a release.

In November 2007, DTCB announced that All 16 diamond manufacturing license holders in Botswana have met the criteria for diamond supply and will become DTC Botswana Sightholders for the three year contract period.

The sale by DDA follows months of talk in the market that said that the company is no longer buying its Sight and not operating its polishing plant.

Shrenuj Botswana has separately been granted an operating license by the Government of Botswana.

Shrenuj Botswana is part of the Shrenuj India Group, which has been a DTC Sightholder since 1982. The new plant ownership will mean a change of focus for the factory, which will be working on a range of rough diamonds suitable for Shrenuj’s international downstream requirements.

Brian McDonald, managing director of DTC Botswana said, “As we do with all our Sightholders, we will offer every assistance to ensure the success of this manufacturing facility, and hence its contribution to beneficiation and corporate responsibility in Botswana.”

DTC Botswana supply arrangements are non-transferable, and this exceptional decision to supply Shrenuj Botswana has been taken by the DTCB board in order to maintain the progress made to date in developing local beneficiation capabilities in Botswana, DTCB added.

In June Shrenuj & Company Limited posted a 19 percent increase in annual consolidated sales to $303.3 million, despite the tough economic climate.