De Beers Valuation Dispute Ends

June 17, 1999

De Beers Valuation Dispute Ends

A dispute over the value of diamond parcels, which held up some $210 million in exports from De Beers' South African mines, is expected to end next week, reports the Bloomberg newswire.

Alleging South African diamond valuator Diamond Valuation International Co. placed too high a value on parcels of diamonds ready for export, De Beers rejected DVIC's valuations on diamonds for the past 11 weeks. De Beers' Central Selling Organisation relied on supply from its Botswana and Namibia mines and possibly its stockpile in London during the dispute. A company spokesperson this week said De Beers reached an agreement with DVIC but gave no details.

Analysts said De Beers feared increased corporate tax liabilities and worried that valuations from previous years might be reviewed, according to the Financial Times. DVIC is a recently appointed valuator, replacing Proval, a diamond valuator staffed largely by former De Beers employees.

- by Stacey King