Professional Jeweler Archive: Grumblings in Diamond Land

November 2004

Diamonds/News


Grumblings in Diamond Land

Supplies not yet affected


The world’s cutting centers, diamantaires and retailers look on nervously as Africa’s main diamond-producing nations increasingly voice dissatisfaction over laws that govern diamond production. For now, the grousing has not disrupted supply

Botswana

Discontent in Botswana played out through a recent strike at Debswana and heated local newspaper editorials. (Debswana is owned 50/50 by De Beers and Botswana.) The strike, now over, was the first in 21 years to halt production in Botswana.

South Africa

In South Africa, new mining laws promote socio-economic empowerment for blacks, skill development and job creation. But discontent simmers. Despite proposed changes in mining laws to benefit local people, the country’s deputy minerals and energy minister, Lulu Xingwana, told parliament “rich white cartels are continuing, even today, to loot our diamonds.”

Namibia

Editorials in Namibian newspapers allege De Beers fudges tax and royalty payments to the government and blames the government for accepting whatever De Beers deems appropriate. Auditor General Dirk Kotze reportedly is looking into royalty equations to determine how De Beers values diamonds.

– by Robert Weldon, G.G.

Copyright © 2004 by Bond Communications