Here's the latest on the DeBeer's snag:
Government To Intervene To End Diamond Export Impasse
Business Day (Johannesburg)
November 16, 1999
By Ilja Graulich
Johannesburg - Minerals and Energy Minister Phumzile Mlambo-Ngcuka is poised to put
short-term measures in place to end the impasse on diamond exports by De Beers. New
problems flared last week - after an initial row in April - when it emerged that the export of
another consignment of diamonds had been delayed.
By last night the export of the series "97" had not taken place, despite earlier reports that it had.
Last night De Beers said a positive meeting had been held with the minister earlier in the day.
Mlambo-Ngcuka told the diamond group that she would put in place short-term measures but
would also review other matters in the longer term, in line with undertakings made by her
predecessor, Penuell Maduna.
The ministry is to make a full statement on the issue today. Mlambo-Ngcuka met the SA Diamond
Board on Sunday. She said then that the board would have to allow the export of De Beers'
diamonds, provided the legal requirements were met.
In turn, De Beers said it could also release a statement on allegations about the group's diamond
stockpile held in London.
Board head Victor Sibiya said yesterday that he wanted a commitment from De Beers to return
its stockpile of SA diamonds held in London to SA, a move that De Beers described as "not
logical".
The group had, however, previously agreed to return so-called "specials" - gems that are 10,8
carats and above - to SA and local cutters.
The group's diamond stock in London is worth about $4,5bn and is crucial to the Central Selling
Organisation's control of prices on the world diamond market.
Analysts said such a repatriation move did not make sense, as the London pile was monitored by
the government diamond valuator.
Furthermore, sight allocations to SA consist of the so-called "London mix", which can be sorted
and allocated only in London, as they contain diamonds from around the world.
Sibiya said yesterday that he would be willing to talk about the row today. There have been
allegations that the board faces severe financial difficulties after heavy spending on refurbishing
its offices.
So far, Sibiya has skirted that issue, saying that he was more concerned with repatriating the
diamond stockpile from London.
PHIL |
