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De Beers to sell more diamonds to domestic manufacturers

July 21, 2015 10:53 AM

Neighbouring Botswana, the world's largest diamond producer, negotiated a deal with De Beers in 2011 to sort, value and sell diamonds domestically rather than in London.

Diamond buyer Elliot Tannenbaum, from the Leo Schachter Diamond Group, looks at uncut diamonds from his company's allocation at a sightholders week at De Beers offices in central London August 29, 2013. REUTERS/Olivia Harris

De Beers, part of global mining group Anglo American, is to sell more of its diamonds mined in Namibia to local cutters and polishers rather than abroad.

The agreement provides further evidence of how African governments are seeking to take a bigger share of the money earned from their natural resources.

Neighbouring Botswana, the world's largest diamond producer, negotiated a deal with De Beers in 2011 to sort, value and sell diamonds domestically rather than in London.

As part of a 10-year sales agreement, Namibia will have control over 15 per cent of the gems produced each year by Namdeb Holdings, a joint venture between the government and De Beers, the world's largest diamond producer by value.

"De Beers will continue to support the domestic cutting and polishing industry in Namibia, and will increase its commitment by making more diamonds available for manufacturing businesses operating in the country," De Beers said in a statement.

Namdeb Holdings is the parent company of Namdeb, which mines diamonds on land in Namibia and Debmarine Namibia, which searches for the gems off the Namibian coast.

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