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Namibia to Attend Major Gem Conference

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By Petronella Sibeene WINDHOEK Namibia and five other African countries that produce more than half of the world’s diamonds will meet in Angola to discuss ways in which they can increase their influence on the US$13,1 billion global market for rough stones. Permanent Secretary in the Ministry of Mines and Energy, Joseph Iita, told New Era yesterday that representatives from Angola, Botswana, Democratic Republic of Congo, Namibia, South Africa and Zimbabwe would meet in Luanda, Angola, on the 30th April. Minister of Mines and Energy, Erkki Nghimtina, will represent Namibia. The African Diamond Producers Association, conceived by producers in November last year, will formally be constituted at this meeting scheduled for Monday next week. The Association is an organisation designed to strengthen influence on the world diamond market as well as harmonize and encourage foreign investment. One of its main concerns is the continued illegal sales of blood diamonds. According to Iita, this meeting intends to discuss how diamond-producing countries can have more influence on market forces. “They want more say in the diamond pipeline”, he said. The Association will formulate united diamond policies that will give these countries more power in the international arena. The aim of this kind of organization is to get more benefits and to get mineral resources beneficiated locally. The Association also strives to drive the Kimberley Process – aimed at curbing the trade of diamonds used for financing wars. Nghimtina, during the African diamond producing countries ministers’ meeting held in Windhoek at the end of last year, reminded delegates that consumers in this industry have become socially conscious with ethical considerations becoming important in their purchasing choices. Because of this, he stressed the need for African diamond-producers to work together to articulate the benefits of this product to the rest of the world, ensuring that trade is a key part of Africa’s development and future. Diamond-pricing has received criticisms, with some experts arguing that the majority of Africans from producing countries do not enjoy any economic or social benefits. Botswana (the world’s largest diamond-producer by value), Namibia and South Africa are leading an effort by African states to reap more benefits from gem production. They intend to force mining companies to offer rough stones for processing at home to combat joblessness and boost foreign exchange earnings. In southern Africa, the industry employs more than 28 000 people. In Namibia, diamonds account for 42 percent of the country’s export revenue, five percent of Government’s revenue and 10 percent of the gross domestic product (GDP). Recently, the governments in South Africa, Botswana and Namibia have geared their legislation towards local cutting and polishing as well as jewellery-manufacturing to generate more employment in the diamond sector. “Since the signing of the agreement involving member states, Cabinet has approved to ratify the agreement and the ministry will soon take it to Parliament”, said Iita. Angola, Botswana, Congo, Namibia and South Africa accounted for 60% of world diamond output last year, according to the website of De Beers, the biggest miner of the gems. Zimbabwe has two diamond mines, one operated by the Rio Tinto Group and the other closely held by River Ranch. The push by countries to gain greater control of their natural resources is mirrored in the Organization of Petroleum Exporting Countries, which influences oil prices by regulating the output of 41% of the world’s supply, and the Gas Exporting Countries Forum, where the world’s largest producers are seeking closer ties. The association would seek to exert greater control over the region’s diamond resources to ensure that more stones are processed locally and that proceeds from gem sales are not used to fund conflict, said Martin Monomela, South Africa’s representative. De Beers, which counts Anglo American as its largest shareholder, is to move its diamond-trading unit from London to Botswana at the government’s request. It has also agreed to sell 16% of its Namibian output to local cutters. In South Africa, where De Beers is based, the government plans to manage the sale of a portion of the diamonds produced in the country. BHP Billiton, De Beers and Gem Diamonds, along with other mining companies, are stepping up their search for diamond deposits in the Democratic Republic of Congo after it held its first elections in four decades last year and is recovering from civil wars. In neighbouring Angola, the end of a 26-year civil war in 2002 heralded an increase in diamond exploration. Diamond sales in that country have jumped by almost two-thirds, to US$1,5 billion, last year, from N$900 million in 2002, placing it on a par with South Africa. Over the same period, Namibia’s revenue from gem production has almost doubled to US$900 million, while the Congo’s has surged 40% to US$700 million.