Data provided by iNet BFA
Loading...
See More

London loses 80-yr grip on diamonds

Aug 15 2012 09:57 AFP

Related Articles

Botswana passes on $1.26bn De Beers rights

Petra Diamonds output surges

Anglo De Beers buyout gets green light

Diamond dynasty

Volatile diamond prices 'not forever'

 

Gaborone - The world's leading producer of diamonds De Beers on Tuesday began rough stone sorting in Botswana, a first step in its transfer from London to Gaborone.

Rough stone sorting or aggregation operations have been based in London for nearly 80 years.

De Beers chief executive officer Philippe Mellier told reporters here it was the first step in a process that should be complete by the end of 2013.

Mellier said the move would transform Botswana into a leading international centre, with about $6bn worth of diamonds expected to flow through the country.

He added that the diamond market remained challenging in the short term, but was nonetheless an exciting time for Botswana to build on its rightful position as a leading diamond producing country.

Botswana and De Beers in September 2011 signed a 10-year deal to move its rough stone sorting and trading division from London to Gaborone.

Since it started mining diamonds in the early 1970s, Debswana - a company equally owned by Botswana's government and De Beers - has been selling its diamonds exclusively to De Beers, who in turn shipped the diamonds to London for sale to customers.

Under the deal, Botswana will for the first time directly sell 10% of gem stones manufactured locally while De Beers will also increase the value of diamonds it makes available to manufacturing companies in the country to $800m a year from the current $550m.

Minerals minister, Ponatshego Kedikilwe said at the time it has long been the aim of the government to have diamonds from Botswana processed, sorted, marketed and sold in Botswana.

De Beers is a global leader in the exploration, mining and marketing of diamonds.

Cecil Rhodes, the colonial-era politician and mining tycoon, founded De Beers in 1888. His fortune financed his imperial adventures for Britain, founding the state of Rhodesia which later became modern Zambia and Zimbabwe.

* Follow Fin24 on Facebook, Twitter and Google+.


 
de beers  |  gaborone  |  london  |  diamonds
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
5 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

A cash flow crunch often occurs in small businesses trying to balance cash coming in with cash going out. Watch this video to help you improve.
 
 

No more nice-to-have shopping sprees

Fin24 user Asia writes how she managed to rehabilite herself from splurging on feel-good iitems and keep clean from the bondage of lifestyle debt.

 
 

Start saving...

Time the key for retirement saving
Dummy's guide to saving
Save money with affordable account
All about endowments

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...