25 March 2008
What started as a signing of agreement between a group from De Beers and the government of Botswana in May 2006, last week culminated in the handing over of a building that will supply local downstream factories with rough stones in return creating 3,000 jobs for Batswana by next year.
The building, with its high quality machinery manufactured by De Beers' in-house engineers, and not available in the open market yet, adds to President Festus Mogae's legacy as he retires next week.
Minister of Minerals, Energy and Water Resources, Ponatshego Kedikilwe, officially received the key to the P471 million building on behalf of the government of Botswana. The key will, according to MG Gareth Penny of De Beers Group, serve as a 'fly wheel' to Botswana economy.
Chairman of De Beers, Nicky Oppenheimer, said at the handover ceremony that attracted the international media, that the Diamond Trading Company Botswana (DTCB) will transfer commercial skills to Africa. "What we are embarking on is nothing less than one of the largest transfers of skills and commercial activity to Africa ever seen," said the South African billionaire. "The diamond industry's centre of gravity is shifting and tonight we are seeing it shifting here. Together we are pioneers, setting an example to the rest of the world," said Oppenheimer.
DTC Botswana will sort and value all rough diamonds produced by Debswana and sell them locally to sight holders or De Beers' clients of choice.
There are already 16 De Beers clients that have opened factories to buy stones from Debswana. They are Ascot Diamonds, Dalumi Botswana, DDA of Botswana, Diamond Manufacturing Botswana, Eurostar Botswana, H and A Cutting Works Botswana, Lazare Kaplan Botswana, Leo Schachter Botswana, Moti Ganz Botswana, Pluczenik Diamond Co., Rand Precision Cut Diamonds, Safdico Botswana, Suashish Diamonds Botswana, Teemane Manufacturing Co., Yerushalmi Brothers Diamonds Botswana and the Zebra Diamonds (IGC Group).
Previously DTC International did all the marketing of De Beers stones although Botswana is the largest producer of rough diamonds. The building comprises a total of 39 diamond sorting machines with a combined value of P69 million with a total capacity to process 45 million carats of diamonds accommodating 600 workers.
There are 3,000 jobs expected in the diamond beneficiation industry, primarily in diamond cutting, polishing, sales and marketing accounting to 30 percent increase in diamond industry jobs in Botswana and 10 percent increase in local manufacturing. Already, 2,200 jobs have been created in downstream jewellery manufacturing en route to 3,000 next year. Botswana will come with other allied industries like banking, security and Information Technology (IT) with Dutch bank, ABN Amro one of the diamond banks, mulling options of setting up here.
DTC Botswana, which followed protracted negotiations over the renewal of Jwaneng mine lease will this year sell $375 million or about P2.4 billion worth of rough diamonds to sight holders while from next year the figure will rise to $550 million, about P3.6 billion.
Already, in 2007 over $270 million - about P1.8 billion - of rough diamonds were supplied to local manufacturers.
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