Namibian Minister: De Beers to Offer Local Supply

Some of the diamonds mined in Namibia by De Beers will be offered for local polishing, said Erkki Nghimtina, the country’s minister of mines and energy.  De Beers and Namibia are negotiating the terms of the renewed sales agreement, and local supply was a Namibian demand raised during the talks.

During a speech at the Namibian National Assembly last week, Nghimtina said he expects talks to conclude by the end of the month.  It is not known at this point what type of goods or how much will be offered locally, or in what form.

Local supply was not part of the last deal, which has expired in 2005.  Until now, all production was shipped to London, where it was mixed with supplies from all over the world, and sorted according to diamond characteristics such as size and shape.

In the past few years, diamond producing South African countries have raised the demand for local supply, aiming to create local diamond industries that extend beyond mining.  This topic, known as local beneficiation, was a key issue at the renewed sales contract in Botswana too.  In that case, one of the outcomes was the formation of DTC Botswana, a De Beers rough diamond sorting center, that will take much of the sorting responsibilities of the sorting facility in London.

In South Africa, a bill requiring to first offer to local polishers all diamonds mined in the country or be taxed on export is in the works.