Industry News

Diamond Trophy Challenge 'a PR Drive for Country'

28th November 2008 www.allafrica.com

SEVENTY people from Hungary, Romania, Russia and Slovakia, including a team of journalists, arrived in Windhoek on Thursday morning to take part in Namibia's first Diamond Trophy adventure challenge, which will take participants 2 500 km across the country to compete in various challenges. The brainchild of Erik Molnar, Honorary Consul of Namibia to Hungary, the event is set to raise funds for the Ombili School serving the San community near Tsumeb and the SOS Children's Village in Windhoek. In fact, part of the challenge includes having the participants bring stationery and school materials for students at the Ombili School, with the most innovative gifts being awarded points. Participants are competing in teams of three to four or as touring families, and will carry out a range of challenges including finding specific map points, hiking up and sandboarding down the famous Dune 7, meeting with members of the Ovahimba ethnic group, taking part in a quiz on Namibian diamonds, and photographing road signs that do not exist in Europe. The participating teams score 10 points for every challenge that they conclude along the way, with the members of the winning team (i.e. the team with the most points and information) each taking home a 0,25-carat Namibian Sun Diamond sponsored by Herrle & Herma Jewellers and Hard Stone Processing - both Namibian companies. Namdeb is also taking part as a sponsor of diamonds for the event, although it's specific level of sponsorship was still being finalised when The Namibian enquired. According to Hilifa Mbako, Namdeb's Group External Affairs and Corporate Communications Manager, "Namdeb is making a contribution to highlight Namibia as a diamond-producing country, particularly for the European tourists, who will be interested in seeing how diamonds are benefiting the country." Mbako emphasised the company's interest in the charitable angle of the initiative, and the combination of marketing Namibia and its diamonds through tourism. Molnar has described this event as a public relations drive for Namibia in central Europe, and he intends to make the challenge an annual event that will in future attract participants from around the world. "The Diamond Trophy will showcase Namibia's natural beauty, its peace and stability. For some, Namibia is a land of contrasts, but for me, it is a land of special stones," said Molnar, explaining that the challenge would promote the country's beauty alongside one of its economic cornerstones - the Namibian diamond. The adventure started on Friday, with stops along the way including at Twyfelfontein, the Etosha National Park, and the coastal towns of Swakopmund and Walvis Bay.

Diamonds add shine to India's ties with Angola, Namibia

15th April 2008 www.timesofindia.com

Riding a resurgent brand India, the Manmohan Singh government is looking to carve out a niche in Africa, a continent where it has badly lagged an aggressive Chinese presence, by striking new partnerships in countries like Angola and Namibia with whom India's traditional contacts had atrophied. The government has been working on a strategy that will allow it to offer itself as a technology partner while also leveraging the new global presence of Indian private sector. The shifts in India's thinking have become urgent, with African nations also chafing at their role as being mere suppliers of raw material. The starting point for the new cooperation with African nations has been diamonds, an industry that supports families of one million workers in cities like Surat, Ahmedabad, Navsari, Bhilwara and Jaipur. During a recent visit, an Indian delegation led by minister of state Jairam Ramesh entered into an agreement with Endiama, Angola's state-owned diamond trading company, to facilitate direct sale of diamonds to India by mid-2009. The mission to Angola was overdue. Like other African nations such as South Africa and Namibia that mine diamonds, Angola has been keen to develop its own expertise in polishing the gem and jewellery design. This has been somewhat inevitable as they look to move up the value chain. For India, this presented a challenge, but also an opportunity to re-route diamond arrivals away from the colonial transit points like Antwerp and Tel Aviv. "India can secure a long-term supply chain and present itself as a partner to African nations. There is a goodwill for India, enhanced by the success of products like Nano and the ability of Indian firms to take over large businesses in Europe and elsewhere," Ramesh told TOI. Now India will take up the offer of Endiama for Indian mining companies to explore and develop diamond mines in Angola. It was time, the Indian team felt, to work urgently to revive an Indian presence in Africa. There had been few high-level contacts and it was time to reinvent relations in keeping with the current aspirations of African nations. India is also detailing its interest in Angolan hydrocarbon industry and is exploring a role in reconstruction of the country's railway system. In Namibia, the Indian delegation had high level contacts including a meeting with the legendary Sam Nujoma, founder of the SWAPO. Here too, India will focus on value addition like cutting and polishing of diamonds and direct procurement of the gems by Indian industry. India will work on major infrastructure projects like modernising the 300-km Walvis Bay-Windhoek rail link.

Stage Set for Huge Gem Robbery Trial

27th March 2008 By Werner Menges www.allafrica.com

FOUR men accused of having been involved in one of the largest robberies or thefts of diamonds in Namibia's history are set to go on trial in the High Court in Windhoek in November. The case in which the four - former Namdeb cook Petrus Nujoma Kapia (34), Amon Ndjukuma (39), Elvis Nixon Tangeni Kalipi (34) and Gabriel Namupolo (33) - are facing seven main charges and a further six alternative charges was finally postponed for the start of their trial when they made their latest pre-trial appearance in the High Court in Windhoek on Thursday last week. The four charged men are accused of having been involved in an armed robbery in which mining gravel containing some 1 692 carats of unpolished diamonds, valued at N$6,23 million, was stolen at Namdeb's Daberas Mine along the Orange River in the Oranjemund district on November 10 2003. This is one of the largest quantities of diamonds alleged to have been stolen in Namibia since Independence at least. Defence lawyers who are set to represent the four men at their trial have already indicated in pre-trial documentation filed with the High Court that all four accused men will be pleading not guilty to all the charges against them. Kapia and Kalipi will also dispute claims that they had pointed out scenes to the Police where some of the allegedly stolen diamonds are claimed to have been recovered after the alleged robbery. The four men are facing seven main charges, being counts of robbery with aggravating circumstances, kidnapping, attempted murder, crossing the Namibian border at a place that was not a designated port of entry, two counts of assault with intent to do grievous bodily harm, and another charge of robbery with aggravating circumstances. In the indictment against them that has been filed with the High Court, it is alleged that during the night of November 9 2003 Ndjukuma and Namupolo woke up a Namdeb employee, Klemens Matyayi, at Daberas Mine, held him at gunpoint and robbed him of a Toyota Hilux bakkie that belonged to Namdeb and was in his possession. They then tied up Matyayi, kidnapped him and dropped him off next to a road leading to a rubbish dump, tying him to a tree and covering his eyes and mouth with masking tape when they left him there, it is alleged. It is charged that the four accused men thereafter went to a control room at the mine, where they broke open the door of a security office and entered. When one of the security officers at the premises, Jacques Burger, encountered them, Ndjukuma fired a shot at him, it is alleged. Another security officer, Gottlieb Cornelius, who tried to get hold of the firearm, was hit on the head with a crowbar and kicked, it is further alleged. Burger and Cornelius were both tied up, whereafter the gang took another mine employee, Johannes van Wyk, to the mine's recovery plant, where they forced him to open the safe, the State is alleging. They took about 18 tin cans with diamond-rich gravel and left the scene in the stolen Toyota bakkie, it is claimed in the indictment. They left Namibia by crossing the Orange River into South Africa, it is alleged further. After some information was received, Kapia was arrested, it is stated in the indictment. He was working at the Daberas Mine hostel at the time. He pointed out some 100 unpolished diamonds that had been hidden in his room, it is claimed. Kapia was arrested on November 18 2003. Ndjukuma's arrest followed on February 2 2004, while Kalipi was arrested on February 17 2004 and Namupolo on March 25 2004. After the arrests, Kalipi pointed out a place near the Orange River where another 100 unpolished diamonds were discovered, it is also claimed in the indictment. A total of 440 unpolished diamonds were recovered, out of the estimated 1 941 stones that had been stolen during the alleged robbery, according to the indictment. The four charged men remain free on bail pending the start of their trial.

Government Diamond Valuators Launch Website

20th February 2008 By Liezel Hill www.diamondintelligence.com

Diamond Marketing Consultants (DMC), an independent local diamond valuator in Nambia, announced the recent launch of its website www.dmc.com.na. DMC is the official Government Diamond Valuator (GDV) to both Namibia and South Africa, valuing approximately US$2.5 billion worth of diamonds annually, according to The Namibian. The company offers valuation services for diamonds produced on land and sea and is relied upon by its clients to determine appropriate market values which inform the level of royalty fees and export taxes levied by the respective governments. DMC's client base extends to mining companies, buyers, exporters and specialized private clients who conform to the Kimberley Process certification scheme.

Canadian diamond exploration near Rosh Pinah

18th January 2008 www.miningweekly.co.za

Canada-based Dahava Resources of Calgary has begun limited production activities on the lower Orange river, in Namibia. Exploration and production sampling have produced 'encouraging' results, indicating the presence of commercially viable diamondiferous gravel deposits, Dahava says. The company's property is 100 km north-west of the Noordoewer border post, near Exxaro Resource's Rosh Pinah zinc mine. Dahava has processing and earthmoving equipment in place and has begun limited mining and processing activities on Block 4 of its property. Further exploration has been halted on Blocks 16 to 20 early-stage exploration opportunities. Dahava has made several corporate changes for increased scope of its activities on the lower Orange, with Eitan Dehtiar making way for a full-time CFO and the company retaining BDO Spencer Steward as its Namibian auditor.

Diamonds in 2007: A Year of Mergers, Big Stones, Economic Swings

7th Januaty 2008 By Avi Krawitz www.diamonds.net

The year 2007 had a bit of everything for the diamond industry. Mining juniors consolidated, De Beers changed strategy, and there was a noteworthy shift in diamond demand on the retail front. Economics helped boost diamond sales at the retail level in India and China, whereas consumers in the United States were forced to pull-back spending. The year had its share of twists, strategic moves, and stronger trends at play by the brands. While it can be debated which stories most influenced change, or generated the greatest interest, there were certainly a few top contenders. We have narrowed it to the following topics that we believe 2007 will be remembered as the year that. Beneficiation Took Shape Southern Africa worked towards claiming a bigger piece of the diamond pipeline through beneficiation and the suppliers really had no choice. South Africa, Botswana, and Namibia each acted to ensure that a minimum supply of diamonds mined in their respective countries will be cut and polished locally. While these processes were a long time in the making, they really took shape in '07 as South Africa's State Diamond Trader was established to start supplying in 2008, and De Beers' Diamond Trading Company (DTC) partnered with the governments of Botswana and Namibia to supply rough at separate sights to local companies. While it was perhaps politically correct to support this move, the more traditional manufacturing centers of Israel, Belgium and India kept one eye on the beneficiation process, and the other on the scarcity of rough in the market. They adhered to the need to seek rough from different sources outside the De Beers framework and many companies -- Suashish Diamonds, Dalumi and Trau Bros to name a few-- set up shop in the southern African centers to capitalize on the trend. DTC Diversified Manufacturer's concerns about future sources of rough were enhanced by two decisions by De Beers which were related to its support for the beneficiation process and to its strategy to focus on profitability. Firstly, the company announced that it would restructure its Diamdel unit, which supplies rough to the secondary or non-sightholder market, drastically scaling back operations in Ramat Gan and Antwerp, and closing its offices in South Africa and Namibia, where manufacturers will be supplied via the State Diamond Trader and NDTC (Namibia Diamond Trading Company) respectively, and also closing in Shanghai. After announcing 11 sightholders in Botswana and 16 in Namibia, DTC then reduced the number of London-South Africa sightholders for the coming three year contract period. DTC preliminarily added six new companies, and dropped 24 existing sightholders to arrive at its list of 75 for the new period. De Beers Faced Supply Issues For the past several years now DTC has been supplying stones from working stock, and now claims to have depleted "nearly all" of De Beers' carried forward inventory. The company claims that nearly all of what it sells at sights are goods mined in its past few mining cycles. Perhaps more significantly, De Beers bought less rough from Russia's ALROSA as part of an agreement to phase out supply by the end of 2008. Although a European Court overturned the phase-out agreement, giving ALROSA the right to supply De Beers, the European Commission has appealed that ruling. De Beers also claims that it will not purchase more rough from ALROSA after 2008. De Beers Divested In a significant change of focus from maintaining its market share to growing as a profitable concern, De Beers sold off a number of its non-core assets, most notably the famous Cullinan Mine to Petra Diamonds. Larger Mid-Tier Diamond Mining Companies Emerged Petra snatched-up Koffiefontein and Kimberly Underground from De Beers, and grew itself into a strong mid-tier diamond miner. While Petra targeted De Beers' properties in the race for that elusive producing diamond mine, others relied upon mergers to boost their positions in the market. Gem Diamonds scored the biggest diamond-related acquisition of the year when it bought Australia-based Kimberley Diamond Company for $263 million. This was fresh after its acquisition of BDI Mining, adding the fifth operating mine to its portfolio. Gem also raised GBP 550 million in the third biggest IPO on the London Stock Exchange for the year. Also aiming to fill the mid-tier gap, Vaaldiam Resources merged with Elkedra Diamonds and Great Western Diamond Corporation to form New Vaaldiam. Given the high demand for rough in the market, investors expressed their confidence in mid-tier miners saying they were attracted to companies who were actually producing diamonds and had strong exploration prospects, rather than investing in pure exploration. BHP Billiton Wanted to Merge With Rio Tinto One deal that did not go through was the proposed mega-merger between BHP Billiton and Rio Tinto, although BHP seems determined it still may. Rio rejected BHP's approximate $153 billion offer to create the world's largest mining company (by far,) and while diamonds are a small aspect of both companies' businesses and didn't really feature in the proposal, a merger would entrench it as the No.3 diamond miner. Whether the acquisition eventually happens or not, speculation continued to circulate that Rio may want to divest from its diamond business. The Rough Supply-Demand Gap Widened The rush to find diamonds was made all the more attractive as demand for diamond jewelry soared in emerging markets. Global production was outpaced by diamond jewelry demand causing rough prices to rise. While polishers felt the pinch, active diamond miners were pleased and expressed confidence to attract investors. Supply shortages were evident in De Beers' marketing company DTC sights, which supplied an estimated 8 percent less rough by value to the market in 2007 than the previous year at around $6 billion. ALROSA auction sales, on the other hand, rose 14 percent to $247.2 million, according to Rapaport records. Troubled Times Dawned on Jewelry Retailers Despite a strong start to the year, when retailers were still riding the consumer wealth wave, jewelers in the United States became less optimistic as the year progressed. Of the larger public companies, Zale Corporation sales were flat for its fiscal year and prepared for much of the same in fiscal year 2008. Finlay, while investing further in its future by acquiring Bailey Banks & Biddle, reported quarterly losses in 2007. Signet Group's profits dropped a near 70 percent during its quarter ahead of Christmas season and warned of a weak fourth quarter. Retail sales and profits fell at Harry Winston too during third quarter (ending October 31.) The company, formerly Aber Diamond Corp., changed its name to Harry Winston Diamond Corp. and listed on the New York Stock Exchange. Retailer Alpha Omega Jewelers ran into financial difficulties in fourth quarter, the company's CEO left the United States for India, and the company filed for Chapter 11 protection on January 2, 2008. California-based Derco Fine Jewelers also ended the year by filing for Chapter 11 protection. Smaller private jewelers reported a slowdown in 2007 trade, some showing double-digit drops in sales. Online Buying Was All the Craze Online retailers however reported solid sales gains, some as much as 20 percent. Blue Nile, the largest online diamond retailer, reported a 29 percent revenue growth in the first nine months of the year, and the company has forecast 25 percent growth on the lower end to $316 million for the year. Profits for the first nine months rose 45 percent to $10.6 million. During the most important spending season in November/ December, jewelry failed to feature as a top contender for gifts. In fact a drop in jewelry sales was main catalyst for a 3.7 percent decline in the luxury goods category, during the period Thanksgiving to Christmas, according to researchers at MasterCard. The U.S. Economy Took a Turn for the Worse Consumer lenders in the United States allowed for unprecedented borrowing in 2007, but lent money on terms nearly 2 million consumers could not afford. As the year wore on the sub-prime mortgage crisis became a hot topic, and subsequently filtered across world financial markets in August. With many major lenders facing write-downs due to wave after wave of home foreclosures, the Fed lowered its benchmark interest rate in second half and printed more cash to sooth fears on Wall Street. These actions however fed into a weakening dollar. The greenback lost value against most currencies, losing around 10 percent against the euro, more than 6 percent against Japan's yen and about 2 percent on the British pound sterling. The dollar index, which tracks the unit against a basket of six major currencies, was down more than 8 percent for the year. Gold and Oil Surged As uncertainty grew against the dollar investors moved into gold, causing the precious metal price to rise 30 percent during the year and move into 2008 approaching new record levels of around $860 an ounce (which it has since surpassed.) Oil prices rose nearly 58 percent during the year, the biggest annual gain this decade, rallying strongly in the fourth quarter to touch a record $99.29 a barrel in November before sliding back into the low $90s. China & India Grew and Grew To hedge sluggish activity in the United States, international diamantaires increased their efforts to enter China's consumer space and did so with relative success reporting high sales volumes in the Far East market. As consumers in China and India felt more comfortable spending their cash there was a noticeable shift in polished imports to China and India during 2007. India's polished diamond imports soared 119 percent through November. Although the weaker dollar affected India's diamond exports, the country's enormous consumer market made up for the losses. However, the strong rupee and a net reduction of five Indian DTC sightholders caused a slight panic among manufacturers there. China forecast that its trade in polished diamonds (imports and exports) would rise 50 percent to $900 million in 2007, while jewelry sales grew 39 percent. China Upped the Stakes in Africa The government of China also clearly recognized the future needs for natural resources and turned to Africa for its long term needs. But unlike western democracies that tie trade with political reform, China sets-up partnerships independent of politcal issues. The country pledged a cool $5 billion to development projects in the Democratic Republic of the Congo (DRC,) and will pay for new rail lines, roads, 31 new hospitals, two new universities, and some 5,500 government housing units. In exchange, China stands to gain access to the world's richest assortment of minerals, from copper to cobalt to uranium to diamonds and gold and the list goes on. Analysts speculated that China was looking to stamp its presence on the continent by linking the copper zone in the DRC south with the country's ports, and redirecting other portions of the DRC's huge mineral potential to Chinese-built networks in Zambia and Angola. Africa Gained Relative Political Stability Africa also caught the attention of corporate investors, which had previously shunned the continent. Investment fund group, New Star, launched its high risk 'Heart of Africa' fund consisting only of companies operating in Africa diamond miners Petra Diamonds and Mwana Africa among them. All this interest was stimulated by an estimated 7 percent economic growth in sub-Saharan Africa in 2007 (excluding Zimbabwe,) fed by the hunger for commodities in India and China. Another factor was the wave of democratic reform sweeping the continent. A new government was elected in Sierra Leone, on an anti-corruption and poverty reduction ticket, and Liberia was accepted into the Kimberley Process and started exporting rough diamonds again. There were of course exceptions, notably the economic disaster that continues in Zimbabwe (despite it passing a KP review visit); Cote d'Ivoire, which remains the only source of conflict diamonds in the market; and the DRC, where violence in the diamond territory of Goma has brought unpleasant reminders of the diamond-fueled wars of the past, and the fragility of peace in the region. Blood Diamond Fades in Hollywood The world was given a glimpse of the atrocities of Africa's conflict diamond past when Ed Zwick's 'Blood Diamond' hit the silver screen in late 2006 across the United States, and early 2007 in Europe, India, and Australia. Illustrating how diamonds were used to fuel the war in Sierra Leone, the movie had potential to hurt the diamond trade and the industry took note. The World Diamond Council went on an education and media campaign to explain the work of the Kimberley Process and counteract any negative message that may have influenced consumers. The bigger drama, however, took place in the court room with the start (and subsequent delay) of the war crimes trial of former Liberia President Charles Taylor. Taylor faces 11 charges of war crimes for his role in fueling the civil war in Sierra Leone by providing militias with weapons in exchange for diamonds. The Special Court for Sierra Leone also made its first sentence of three former rebel commanders for their role in the war. Records Were Set in Stones Africa continued to produce the goods, both in size and quality. Gem Diamonds mined the 15th and 18th biggest diamonds in history at its Letseng mine in Lesotho, selling both to the Laurence Graff-SAFDICO partnership for $20,497 and $21,095 per carat respectively. Diamonds also fetched record prices under the hammer and were hailed as the new art of the auction circuit. Sotheby's took the cake, selling a 6.04 carat internally flawless, emerald cut, fancy blue diamond for $7.98 million - an all time high price of $1.32 million per carat. Graff was also active on the auction scene snapping up a 4.16 carat fancy blue pear-shaped diamond for $4.72 million at Sotheby's, and paying $2.26 million for a fancy purplish-red diamond ring at Christie's Geneva. French auction house, Guizzetti-Collet, also joined the party selling a 6.5-carat blue diamond for EUR 2.43 million ($3.56 million.) Diamonds Became Bizarre Art Some of the more odd diamond items during the year included artist Damien Hirst's 'For the Love of God' a skull covered with 8,601 diamonds which sold for GBP 50 million ($99.1 million) making Hirst the richest living artist in history though some suspected the sale to be nothing more than an extravagant marketing ploy. Dalumi auctioned its diamond-studded top in Dubai, which was designed in partnership with the late Gianfranco Ferre. The women's top was covered with more than 900 diamonds mounted in white gold, (more than 300 carats in total) the top had an estimated retail price of $1.42 million. Diamond jewelry manufacturer, Lazare Kaplan International, made a diamond studded ice cream cone valued at $1 million, to help Bruster's Real Ice Cream promote its brand. Bruster's commissioned Lazare to design the piece, which it said it would sell and donate the proceeds to a charity which the ice cream company sponsors. The Great Green Plastic Fooled Perhaps the biggest oddity of the year was the so-called 7,000 carat diamond found in northwestern South Africa not a renowned diamond area which turned out to be nothing more than a giant blob of green plastic. Though few will admit it, the diamond world was taken in, albeit for a brief moment, and the hoax made for a great story. Looking back, so did the rest of 2007.

Namakwa Diamonds raises GBP90,7m in London IPO

14th December 2007 www.miningweekly.co.za

South African alluvial diamond-miner and beneficiator, Namakwa Diamonds, listed on the main board of the London Stock Exchange on Friday, after it raised about �90,71-million through its initial public offering. The offer price was set at 181p a share, and, based on the offer price, the market capitalisation of Namakwa at the start of conditional dealings will be about �211-million. "The offer proceeds will help us to finance growth in our mining and beneficiation businesses. Our integrated business model has demonstrated value and we believe we are strongly positioned to capitalise on a number of consolidation and growth opportunities in the diamond sector. We look forward to starting our new journey as a publicly listed company by focusing on our exciting growth plans," said Namakwa CEO Nico Kruger. Namakwa operates mines in the North West province of South Africa, in Namibia, Angola, and the Democratic Republic of Congo. It has been estimated that Namakwa has a diamond resource base of about 16,6-million carats, of which about 4,1-million carats are indicated diamond resources, and 12,5-million carats are inferred diamond resources.

De Beers Makes Namibian Mining School Donation

29th November 2007 www.idexonline.com

Diamond mining giant De Beers has announced a charitable donation of N$2.1 million (US$301,000) to the Namibia Institute of Mining and Technology (NIMT), to acquire buildings for its Northern Campus in Tsumeb. NIMT is Namibia's premier institution for artisan training and now has two campuses, the main one in Arandis. 64 students were enrolled in the Northern Campus the first year, and this number is expected to grow to 214 by 2009. De Beers Chairman Nicky Oppenheimer announced at the inaugural ceremony the creation of the De Beers Namibia Fund, through which De Beers plans to support Corporate Social Investment in Namibia. He also noted that the NIMT was the first beneficiary of this new program.

A Rare Gem Among Many

26th October 2007 www.allafrica.com

Anca Burger, the Project Engineer at the Marine Dredging Treatment Plant (MDTP) in Mining Area 1, is as rare as a precious stone in this male-dominated industry where she oversees the day-to-day running of a diamond mine. Though located onshore, the diamonds recovered at this site that is still in its pilot phase, but expected to go on full steam by year-end, are part of the gems recovered offshore. Burger counts among a group of women from a broad social spectrum with varying backgrounds, who are systematically being empowered because of their capabilities and qualifications by De Beers Marine Namibia, whose metier is offshore diamond mining. Burger (31) acquired a degree in civil engineering at Stellenbosch University where she studied for four years after she matriculated in 1994 at Keimos Secondary School, in a grape-farming area located in the Northern Cape in neighbouring South Africa. Running a diamond plant and charged with supervising men is not every woman's cup of tea, but this easy-going woman seems to have cultivated her self-driven persona from a working-class parentage. Her mother Lula van Niekerk was a secondary school teacher at Keimos Secondary School. Attie her father worked in the health sector at Keimos. After Stellenbosch in 1999, she had a short spell in the Borough of Lambeth in London where she was preoccupied with the transportation sector on projects related to the construction of the London Eye and the Millennium Bridge, before she moved to Namibia. In a recent interview, she said her experience in London: "was very exciting". After London, Namdeb's engineering programme beckoned and it was here she was recruited for two years on a multi-skilling course that involved "all aspects of mining engineering operations and where you also gained underground experience". She tied the knot in 2000 and this mover and shaker passionately describes her husband Wicus Burger, also employed as an engineer at Namdeb, as "very supportive" of her. On her immense task of overseeing 60 employees on the onshore diamond mine, Anca says: "I am legally responsible, if someone dies I could be prosecuted in court." Her shift that begins at 06h30 until around 16h30 entails "active maintenance" and ensuring all mining and diamond treatment processes are in perfect working order. Though she says she runs a "very modern plant", things normally break down and she has to use her engineering expertise to fix equipment that breaks down or malfunctions. In response to a question on the number of women in the diamond-mining sector, Burger who is the only woman employed as a project engineer by De Beers Marine Namibia, said: "Women in mining, especially in the production sector, are a rare find, it is an anomaly. This sector was male-dominated especially underground. Previously women were not allowed to work underground. It was outlawed. But this has changed in recent years, while a lot has changed in the last couple of years." The De Beers family of companies employs numerous women, several of whom are in senior management positions. Others are diamond sorters, engineering planning clerks, mineralogical technicians, bedrock operators and security officers, among other jobs. And the fact that some of the women have taken previously male-predominated jobs such as boilermakers, and fitters and turners, indicates a gradual but seismic mind-shift. She added that local diamond companies, particularly De Beers Marine Namibia - a leading offshore diamond miner - gives preference to women, thus levelling the uneven field. Her plant has a capacity to process 400 tons per hour of gem-bearing gravel and it consists of a frond end section. Diamond-laden gravel scooped by the dredge passes through two ball mills, while recovery involves putting this valuable material through a dense medium separation process and taking the concentrate to the centralized recovery. On average, the stone size of gem-quality diamonds recovered through this plant at U90 Block, 50 km north of Oranjemund along the Atlantic coastline is .7 carats compared to the average .3 carats for the stones extracted at Elizabeth Bay Mine. "It is a good average stone size," she quips on the size of stones being recovered on U90. The MDTP plant will have an annual yield of roughly 250 000, accounting for a quarter of the current annual production of a million carats of De Beers Marine Namibia, while roughly over a million carats are recovered onshore through alluvial mining by Namdeb. Total local diamond yield in 2006 from marine (1.07 million) and land-based areas (1.02 million) equalled 2.08 million carats, surpassing projections for 2006 with 85 000 carats. Since the future of local diamond mining lies offshore where De Beers Marine Namibia is entering new frontiers as a global leader in this sort of mining, Anca Burger's future in a sense looks gilt-edged and this go-getter could most likely broaden her horizons.

Biggest diamond ever 'a disgusting lump of resin'

11th October 2007 www.theherald.co.za

THE men who made international headlines with their announcement that the world's biggest diamond had been discovered have denounced as conmen the miners who claimed to have unearthed it. The fallout comes in the wake of a diamond expert describing the discovery as a disgusting lump of resin. The Times of Johannesburg reported yesterday that businessman Brett Jolly, the spokesman for a mining consortium, said he would lay charges against two Potchefstroom miners he believes were involved in a convoluted property scam. On August 28, Jolly announced that a mining consortium had found a diamond twice the size of the famed Cullinan gem. More than a month later, Jolly now admits he was the victim of a scam. In an affidavit he is to give to the commercial crime squad in Cape Town today, Jolly describes meeting Andre Harding, a central character in the discovery of the diamond, through a business associate in Namibia earlier this year. Harding told Jolly he knew of land for sale in Potchefstroom that had millions of tons of diamondiferous alluvial gravel. Jolly claims he and his associates were persuaded to buy the land when Harding said he and fellow miner Theuns Botha had found a very large green gemstone on the property. Ernest Blom, a diamond expert hired by Jolly, appraised the stone last week in front of a few journalists. The Times found Harding had pre-set the gemstone tester to skew the result. Blom, who described the rock as lump of resin, distanced himself from any involvement with Harding. Harding claimed yesterday that his life had been in grave danger since his name and Botha's became public.

Diamond industry reaches a milestone

5th October 2007 Tonderai Katswara www.namibian.com.na

ELEVEN local diamond-cutting companies were yesterday approved as the first-ever group to become Namibia Diamond Trading Company (NDTC) sightholders, and will receive Namdeb's rough diamonds to be processed locally. Yesterday's occasion follows the establishment of the NDTC in January 2007, after the signing of the latest five-year sales and marketing agreement. The agreement is between the 50/50 joint venture partners, the Government and De Beers. A sightholder is a company that is on the NDTC's list of authorised bulk buyers of rough diamonds. Eighteen companies applied for a supply of rough gems from NDTC, but seven failed to make the grade and were turned down. Namdeb - another 50/50 joint venture between the Government and De Beers - last year produced two million carats. Ten per cent of the diamond-mining company's annual production will be made available to local cutters. This should translate to a supply of N$2 billion worth of diamonds to the local industry by 2009 - which represents almost five per cent of the country's gross domestic product (GDP). The successful applicants are a mixture of established and new players in the local diamond industry - Namgem, LLD Diamonds, Hardstone Processing, Namcot, Finesse Diamond Corporation, Laurelton-Reign Diamonds, JKD Namibia, NU Diamond Manufacturing, Trau Bros Diamonds Namibia, Almod Diamonds and AMC/GemXel Diamonds. For a long time, diamond cutting and polishing companies have been clamouring for local gems for beneficiation, as they could not get enough on the market. Before NDTC came into play, all Namdeb's gems were shipped off to De Beers DTC International in London for selling to sightholders. NDTC Chairman Shihaleni Ndjaba - also the Permanent Secretary of Works, Transport and Communication - explained that companies with operational factories as of July 18 2007 - like Namgem, LLD, Namcot and Hardstone Processing - would be entitled to receive their first supplies for cutting and polishing on October 29. The rest would be given a grace period to set up shop and would receive their first supply on March 31 2008. Selection criteria focused on financial stability, general business reputation, compliance with certain global diamond sector regulations and a minimum turnover of US$5 million (N$35 million). Contracts between the NDTC and the 11 sightholders are valid for three and a half years. However, the NDTC in conjunction with the Ministry of Mines will put in place a once-a-year business review and evaluation scheme, which will ensure that sightholders adhere to their contracts, and those seen to waiver could face having their contracts terminated. "NDTC's core objective is to provide maximum long-term value from diamonds to the country by developing world-class sorting, valuing, selling and marketing practices in Namibia. "It is anticipated that the growth of cutting and polishing operations will also help to reinforce the country's positive investment climate for foreign businesses," said Ndjaba. NDTC Vice Chairperson and DTC International Managing Director Varda Shine said local cutters would be supplied with rough gems that they were capable of economically processing to internationally acceptable standards. "It (NDTC) will enhance Namibia's competitive supply advantage through skills and intellectual property transfer, building national capacity to meet the needs of a growing cutting and polishing industry," she said. This initiative is foreseen to boost economic growth through value addition to Namibia's natural resources and is expected to be supporting more than 1 500 jobs by 2009.

SA mining laws impede exploration

20th September 2007 www.miningweekly.co.za

South Africa's mining legislation was holding back exploration in the country and, given the global commodities boom, it should be easier for mining companies to do prospecting work, De Beers group chairperson Nicky Oppenheimer said on Friday. Oppenheimer, who was speaking at a media conference in Johannesburg, said that De Beers would like to do more prospecting in South Africa. There is every chance for people to find more mines in South Africa, he said. But Oppenheimer warned that South Africa's current permitting processes were preventing it from expanding its prospecting work in the country. He explained that De Beers would like to use the Zeppelin an airship used to fly over areas to find diamond-bearing kimberlite rock in South Africa, but that it would have to conduct environmental-impact assessment studies for all the areas that it planned to fly over. The company was exploring in neighbouring Botswana for new diamond finds using the Zeppelin airship. De Beers was in talks with the Minerals and Energy Department to resolve the issues, and to make it easier for companies to explore for minerals in South Africa, Oppenheimer said. I don't think people are deliberately difficult government is well aware of these problems, he added. Last year, the group invested about R150-million in exploration in South Africa.

Changes To Namibia's Mining Laws Required To Protect Local Ownership

13th September 2007 www.diamondintelligence.com

Changes to Namibia's Mineral Act of 1992 may be necessary to ensure that control of diamond production remains local. A clause in the law enables licensees to partner or sell-off their rights to foreign investors, according to a local news source. According to the Minerals (Prospecting and Mining) Act of 1992, mining licenses are awarded to Namibian citizens and company's registered in the country. The license is valid for the entire life of the mine with a 25 year initial contract that is renewable for up to 15 years at a time. Among the criteria is that the company must have the financial and technical resources to ensure the proper and safe operation of the mine. Erkki Nghimtina, Minister of Mines and Energy, has expressed concern over Namibians failing to leverage the mining license opportunities to create employment and contribute to the country's development. Of the approximate 20 licenses registered for cutting and polishing Nambian diamonds, most have already been transferred to foreign operators.

Sea mining the 'new gold rush'

6th September 2007 www.cbn.co.za

CAPE Town-based engineering company, Marine and Mineral Projects, says it is pioneering the global future of deep sea mining, which could lead to a 'new gold rush'. The concept of deep sea marine mining arose in response to the rich diamond deposits that were identified off the coast of Namibia. More recently, other mineral deposits have been identified in various locations around the world, including in the Manus Basin, off the coast of Papua New Guinea, within the Kermadec Ridge in New Zealand waters and along several other fissures within the Pacific Rim of Fire, to name a few globally mining investors are calling this the 'new gold rush', says MD Rodney Norman. Marine and Mineral Projects has developed efficient remote controlled deep sea mining technology that allows for low-cost marine based mining, says Norman. Deep sea mining is less invasive than land based mining and produces far less waste material, which all has less of an impact on the environment. Land based mining operations often disturb large areas to get to the minerals, whereas, in the ocean the deposits are literally sitting on the seafloor and in the mining process there is less of an impact and quicker rehabilitation takes place. Norman says Marine and Mineral Projects is a world-class firm of hi-tech marine engineers who have developed the leading technology available in the world that allows for deep-sea mining from a vessel. The company was responsible for the construction of the remote crawler used on the Peace in Africa, a De Beers Consolidated Mines owned ship that was converted into a floating diamond mine in a mammoth two year project. The conversion project saw Marine and Mineral Projects contracted to fit the ship with deep sea mining crawler technology, which included the remotely controlled crawler, launch and recovery system and vessel mooring system. With some land based mineral deposits being fully exploited across the world, deep sea mining is set to revolutionize global approaches to the search for precious metals, diamonds, oil and other sought after minerals, Norman says. The conversion of the Peace in Africa required amongst other things 1 950 tons of steel, 48km's of cable, 12 tons of paint and over 600 000 man hours. All of this at a total cost of R1.2 billion. It started mining off the Cape's West Coast in May this year. The 240 ton remotely controlled seabed crawler unit on the Peace in Africa, which undertakes the mining, is connected to the ship by a 650 mm internal diameter rubber hose through which the seabed material is pumped to the plant, using a 2.4MW pumping system. A 500KW hydraulic power pack powers the systems on the crawler, The ship and crawler will work up to 35 km offshore and at depths of up to 150 metres where mining activities will be undertaken in 100m x 100m blocks. Worldwide there are only a handful of diamond mining vessels in operation and it's a very specialised and new area of exploration; we are proud to say that Marine and Mineral Projects is pioneering the essential technology and has developed the best equipment to retrieve these mineral rich deposits, says Norman. In conjunction with De Beers, Marine and Mineral Projects has worked extensively to ensure that the environmental impact of deep sea mining is kept to a minimum. The mining does disturb the seabed sediments and Benthic communities, but most of the sediment resettles within minutes. Two of the largest venture mining companies to invest in deep sea mining, Nautilus and Neptune, are backed by the world's largest mining houses including Anglo American, Barrick Gold and Teck Cominico. Nautilus and Neptune are actively involved in deep-sea exploration and are positioned to become leaders in deep sea mining. Without the technology developed by Marine and Mineral Projects, the deep-sea world of mineral wealth would only be available at extraction costs that would make mining impossible to sustain, Norman says. The future prospects are extremely exciting as MMP is imminently set to become involved in several global projects in conjunction with some of the largest mining organisations in the world, he predicts.

Massive gem dug up in South Africa

30th August 2007 www.news.bbc.co.uk

A small South African mining company has claimed to have discovered the world's biggest-ever diamond. A shareholder in the unnamed mine told the BBC the stone had been unearthed at their operation in the north-west province on Monday afternoon. He said the giant gem was about 7,000 carats - which would be twice the size of the Cullinan Diamond, centre-piece of the British crown jewels. But industry experts are sceptical about the unconfirmed claim. Brett Jolly, a shareholder at the mine, said the stone had been taken to a bank vault in Johannesburg. Mr Jolly said he hoped tests on Tuesday would prove its worth. In a photograph emailed to the BBC, the 'stone' appears to be about the size of a coconut, and has a greenish tinge. But a spokesman for De Beers, the world's biggest diamond mining company, said the north-west province was not known for producing gems and greenish stones were even rarer. The firm also said that if the find were genuine it would be the stone of the century.

Namdeb Sales Soften On Price Decrease

23rd August 2007 www.idexonline.com

Namdeb rough diamond sales in the first half of the year have decreased despite an increase in production. Revenues from rough sales were N$2.3 billion ($311.44 million), 9 percent lower compared to the first six months of 2006. The mining firm, a 50/50 joint venture with the government of Namibia, said the decrease was due mainly to the effect of the price correction in the rough diamond market in the second half of 2006. In the first half of 2007, 1.178 million carats were produced, rising from 1.006 million carats mined in the same period of 2006. Average stone size remained 0.45 carats. 1.086 million carats were sold, for an estimated average of N$2143.65 per carat ($290.27). Pre-tax profit increased to N$555 million ($75.15 million), rising 17 percent over last year, a result of a decrease in prospecting costs and other operating expenses. Taxation for the period amounts to N$406 million ($54.98 million), which represents 73 percent of pre-tax profits. Prospecting and research and development charges also decreased, as the miner did not operate their marine dredging project this year. Finally, other operating expenses decreased due to arrangements of the new sales agreement coming into effect in 2007, Namdeb said, which led to the establishment of Namibia Diamond Trading Company (NDTC). General performance of the first half of 2007 shows an increase in net profit compared to the same period last year, the company said in a release. This was achieved by increased production during the first half of 2007. It is anticipated that this performance will not be repeated in the second half of 2007, resulting in the forecast net profit for the full year being lower than achieved for the full year in 2006. Namdeb added that the main reasons for this are the timing of the marine vessels' inport periods, the effect of the recent fire at No. 3-Plant and the timing of major projects like new mini-mines and Pocket Beaches phase 2.

Namdeb and mineworkers' union of Namibia agree on wage increase

16th August 2007 www.diamondintelligence.com

Namibian diamond company Namdeb Diamond Corporation (Pty) Limited and the Mineworkers' Union of Namibia (MUN) met to discuss workers wages. The outcome of the meeting led to a wage agreement which stipulates a 10 percent across-the-board increase for more than two thirds of the diamond company's employees. MUN members were assured the wage increase is retroactive to April 2007. The agreement is valid for one year, according a Namibian news source. A local Namibian paper reported that Namdeb General Manager Chris Siertsen praised both negotiating parties for "a good outcome and for adopting a mature approach during their long and tough negotiations." Namdeb, which is owned in equal shares by the Government of the Republic of Namibia and De Beers, currently holds six mining licenses throughout Namibia where diamonds are recovered.

Investing in Africa the final frontier for adventurous investors

9th August 2007 By Laura Bobak www.money.canoe.ca

Africa is a financial wild west that could prove very lucrative for adventurous investors looking to cash in on emerging markets - as long as that investment recognizes the dangers that exist on the continent. "Africa presents investors with both tremendous potential and tremendous risk," analysts Jose Rasco and Richard Bernstein wrote in a July report for investment banking firm Merrill Lynch. African nations "continue to monetize their natural resources such as oil and commodities, but also are attempting to diversify their economies, become more productive, and more involved in the global economy," the analysts state. The mysterious, enigmatic, continent, while still suffering from stark gaps between the rich and poor, is seeking investment from abroad, albeit on terms more favourable to its people. Countries seeking capital include the likes of Namibia, with its uranium deposits; Angola, which boasts massive diamond reserves and a more stable political landscape, South Africa, with its well-developed, mature economy, and oil-rich northern states. Despite a wealth of resources, the long-standing conditions that have served as obstacles to Africa's economic growth and prosperity remain significant. These include: war, violence, underdeveloped legal and financial systems, a lack of health-care, widespread AIDS, malnutrition, inadequate infrastructure and glaring gaps between rich and poor. Nevertheless, the "bull" case for Africa notes there has been an increase in debt relief and investment money flowing into the continent, and the country's markets haven't received much attention. Canadian tax laws on mining investment encourage junior miners companies to list on the Toronto Stock Exchange and Canadian diplomats help them network and dealing with foreign governments. "The continent may be poised to enter an unprecedented stage of economic development," Merrill Lynch states, noting 100 companies in more than 20 countries will be a position to capitalize on that growth. Africa, according to the International Monetary Fund, has seen its commodity-fuelled economic growth average five per cent, exceeding average world growth of 4.2 per cent since 2001. The IMF forecasts African growth will continue at an average of 5.6 per cent until 2012, outpacing the world average by nearly one percentage point. Meanwhile, the World Bank estimates foreign direct investment in Africa has increased fourfold since 2000, to about $40 billion last year. Merrill Lynch singles out 10 "major investment opportunities" that should hold up until 2017 on the continent - oil, commodities, agriculture, land and water, health care, infrastructure, telecom, information technology, defence, financial services and retail. Bruce Shapiro, president of MineAfrica, a Toronto-based company which promotes investment in the continent through seminars which connect junior miners to analysts and investors, said 150 TSX-listed companies are exploring and developing mines in Africa, representing about 50 per cent of mining activity on the continent.

Liberia lifts its moratorium on diamond mining

2nd August 2007 www.chinapost.com.tw

Liberia has lifted a self-imposed moratorium on the mining, sale and export of diamonds that had been in place for six years, officials said. "As of Monday, people can start applying for mining, selling and broker licenses" for the stones, Deputy Minister of Lands, Mines and Energy Minister Kpandeh Fayia told The Associated Press on Saturday. Liberia's diamonds came under U.N. sanctions in May 2001, when ex-President Charles Taylor's government was accused of using revenues from the stones to fuel war in neighboring Sierra Leone. In an effort to show compliance, the Liberian government placed a moratorium on all mining activities across the country. The U.N. lifted the sanctions in late April, citing steps taken by the country's postwar government to ensure regulation. Liberia's export industry traditionally has been overwhelmingly dominated by rubber and timber, with diamonds being a relatively minor component. Government officials estimated that, before the imposition of sanctions, about US$600,000 (euro440,000) worth of the gems were being smuggled out of the country annually, with very little going through legal export channels. In early May, President Ellen Johnson Sirleaf formally opened 10 diamond screening and evaluation office in the country, marking the first step toward restarting the industry. The regional diamond offices are supposed to be responsible for recording any diamonds purchased under the new scheme, and for taxing the transactions. Liberia was wracked by more than a decade of on-and-off fighting that ended in 2003 with Taylor's ouster in a several-year rebel war. As part of a peace deal, he went into exile in Nigeria. Taylor is currently in jail facing war crimes charges at a U.N.-backed court in The Hague stemming from his alleged backing of Sierra Leone's rebels, who terrorized victims by chopping off their arms, legs, ears and lips. His trial is being held in the Netherlands because of fears it could trigger renewed violence in Sierra Leone if it were held there.

Measuring KP, Gov't Rough Diamond Data for 2006

25th July 2007 By Avi Krawitz, Jeff Miller www.diamonds.net

Statistics on rough diamond trade released by the Kimberley Process (KP) on Thursday (July 19) and those directly reported from various federal agencies for 2006 differed somewhat. KP members are required to submit rough diamond production statistics on a semi-annual basis, and rough trade data quarterly, for annual collection in June. The data for year 2006 was released on July 19, a little late due to logistical problems the organization contended. When the KP first published country data in April 2007 (covering the years 2004 and 2005,) the organization warned that figures would not match-up exactly due to differing conceptual and methodological practices employed in gathering and reporting the data by the KP and respective governmental participants. A sample comparison of KP and federal country data conducted by Rapaport News for three of the four major trading centers found that figures from Israel, India, and the United States were mostly lower than figures compiled by the KP. Belgium rough diamond data was lumped in with the European Community according to KP method and could not be compared with federal statistics. The European Community exported about $13.84 billion of rough, a drop of 6 percent from 2005, according to the KP. Rough imports dropped 10 percent to $13.73 billion. Israel imported $5.5 billion in rough (down 11 percent) and exported $3.5 billion (down 19 percent) during 2006 the KP data shows. Israel's government reported $544 million less in rough imports. Rough exports were 22 percent less, or $750 million, by the government's count. As the largest importer of rough diamonds in the world, India's government and the KP count were close with the federal import figure at $8.4 billion and KP's figure of $8.55 billion (down 6 percent.) India logged rough exports at $812 million for the year, compared with the KP's $546 million (down 9 percent.) The United States Department of Commerce reported 2006 imports of $801 million, compared with the KP amount of $790 million (down 11 percent.) The figures for rough exports were $523 million (up 2 percent,) or $81 million more than what the government concluded. In smaller trading centers: Dubai exported about $2.37 billion in rough (up 5 percent,) Thailand exported about $237.3 million (up 3 percent,) Switzerland exported about $1.7 billion (down 23 percent,) Japan exported $26.5 million (up 1 percent,) China produced $1.2 million (up 20 percent,) imported $1.7 billion (flat,) and exported $616 million (down 9 percent.) Lebanon exported $5.2 million, but the country was not on the list in 2005. Data from the major mining countries were more in line with what the KP reported. Angola reported 9.3 million carats in production valued at around $1.12 billion in 2006 compared with the KP's 9.17 million carats at $1.13 billion (up 4 percent.) Botswana's production at 31.1 million carats was valued at approximately $4 billion by the government, while KP figures found 34.29 million carats were produced and valued at $3.3 billion (flat from 2005,) but imports doubled to $60 million. Canada produced 12.3 million carats (up 7 percent) and exported $1.4 billion (up 2 percent.) The Democratic Republic of the Congo (DRC) reportedly produced about 28.5 million carats valued at $409.48 million. The KP reported rough production at 28.99 million carats worth $431.9 million in 2006. The DRC exported $679.5 million (down 24 percent,) and 1.2 million more carats than what was produced, according to KP figures. Brazil produced $6.3 million (down 71 percent) and exported $5.4 million (down 72 percent.) Central Africa Republic produced $59 million (down 2 percent) and exported the same. Guyana produced $44.4 million (up 3 percent) and exported $44.3 million (up 2 percent.) Indonesia produced $10.6 million (more than double from 2005) and exported the same. Lesotho produced $83.5 million (up 30 percent) and exported exactly the same. Namibia produced $901 million (down 23 percent) and exported slightly less, which was still 28 percent higher than 2005. Russia produced $2.6 billion (up 4 percent) and exported $1.75 billion (up 3 percent.) Sierra Leone's federal bank estimated that rough exports were about $210 million in 2006, the KP determined production of about $67 million (down 53 percent) and exports at about $125.3 million (down 11 percent.) South Africa produced $1.36 billion (up 3 percent) and exported $1.93 billion (down 10 percent.) Venezuela produced about $1.18 million (down 68 percent) and did not show any exports however the government vowed to provide the data to KP. The KP found that Zimbabwe produced about $33.853 million of rough (down 8 percent) and exported $31.76 million (down 21 percent.)

The new scramble for Africa

17th July 2007 Jonathan Faurie www.miningweekly.co.za

In the not-too-distant past, Africa was a hot spot of mineral exploration and mining extraction. But unrest and political instability on the continent in more recent decades caused many mining companies to withdraw, resulting in not only a decline in production, but also an underinvestment in prospecting, particularly through the deployment of modern exploration techniques. However, the landscape is changing, with greater political stability emerging at a time when the demand for mineral resources is growing strongly, on the back of a seemingly insatiable raw- materials appetite from China. This is leading to a strong recovery in prices, which some believe could continue for some years yet. There is now broad consensus that the outlook for mining in Africa is improving. With political stability returning to the highly prospective Democratic Republic of Congo (DRC) and many other resources-heavy African countries, interest and investment are beginning to follow. South Africa's Council for Geoscience is at the leading edge of feeling the effects of this new enthusiasm. Executive manager for applied geoscience Fhatuwani Ramagwede tells Mining Weekly that resources companies, big and small, are looking at Africa anew. I believe that, as long as world metal prices remain strong and sustainable, the potential for the discovery and development of mineral resources in Africa is going to grow exponentially and mining will be a leading force in driving new foreign direct investments. Many African countries remain unexplored or underexplored and Ramagwede says this is offering true 'blue sky' potential for mineral explorers and resources giants. In the face of diminishing mineral discoveries and recoveries in the mature mining centres, together with rising regulatory and environmental pressures, the planetary alignment is such that it is increasingly supportive of a possible African mining renaissance. Research conducted by the Council of Geoscience shows that currently Africa produces more than 60 metal and mineral products and is a large producer of several of the world's most important and highly valued minerals and metals, including gold, diamonds, uranium, manganese, and chromium, besides others. It is interesting to note that Africa's contri- bution to the world's major metals, copper, lead, and zinc, is less than 7 %, while Africa's share of silver production, which is often a by-product of base-metal extraction, is only 3%, says Ramagwede. The potential for dramatic expansion from that base is considerable. Although the figures require additional scrutiny, it is currently estimated that Africa hosts about 30% of the planet's remaining mineral resources, including 40% of its gold resources, 60% of its cobalt, and 90% of the world's platinum-group metal reserves. Given this imbalance between the estimated resources base and actual production, it is safe to say that the mining footprint in Africa remains modest and has significant potential for growth.

Angola Widening Regional Diamond Cooperation

10th July 2007 www.idexonline.com

Angola and Botswana are examining cooperation in the diamond industry, the two southern African countries announced.Patrick Balopi, Botswana Parliament speaker, said his country is interested in cooperating in diamonds following a meeting with Manuel Africano, Angola's minister of Geology and Mining.Balopi said he visited the ministry to learn about Angola's mineral production.According to Africano, Angola has diamond cooperation agreements with South Africa, Democratic Republic of Congo and is negotiating with Mozambique and Namibia.

Zimbabwe's President: We will Nationalize the Country's Mines

2nd July 2007 Tali Ayalon-Metser, Rachel Lieberman www.israelidiamond.co.il

Zimbabwe's President Robert Mugabe has threatened to nationalize 51% of the country's mines via legislation tabled at the parliament. The aim of the new law is to transfer the mines to local hands in order to compensate the population for years of discrimination. This week an order stipulating an overall slashing of prices by 50% was issued with the aim of decreasing the country's galloping annual inflation, which currently stands at 4,500%. Mugabe stated that business owners who raise their prices will be arrested. He also warned that the government would catch foreign mining companies wreaking economic sabotage and playing "a dirty game" with the aim of toppling his regime. President Mugabe made the remarks at the funeral of Brigadier General Paul Armstrong Gunda.

New laws will raise communities' mining wealth

25th June 2007 Carli Lourens and Antony Sguazzin www.busrep.co.za

Johannesburg - South Africa plans to change its laws to increase communities' ownership of the mining industry, which accounts for about a fifth of the nation's jobs. A team had been appointed to investigate adapting the laws to give larger stakes in operations to communities located near mines and those supplying labour, mines minister Buyelwa Sonjica said on Friday. She could not say whether the new laws would apply retrospectively. Mining companies such as Anglo Platinum face community opposition to developments in Limpopo province. The government's plans to develop diamond operations with De Beers in the Northern Cape have also been challenged. The plan was "a consequence of the Limpopo and Northern Cape experience, where we are seeing communities rising up to challenge the status quo", Sonjica said. "We have taken an in-principle decision to amend the act. There is very little that communities are getting." Many of South Africa's mining industry employees are migrant labourers. Some of the more than 160 000 people working in the gold mines come from the impoverished Eastern Cape and neighbouring Lesotho and Mozambique. "We're not overly concerned that there will be something to our extreme detriment," said Jabu Maphalala, the head of communications at the Chamber of Mines. South African law already forces mining companies to sell 26 percent of their assets to black investors by 2014, to help make up for discrimination during apartheid. Those that do not, or that fail to comply with other parts of the legislation such as appointing black South Africans to 40 percent of management posts by 2009, may have their mining permits revoked. Tax laws on employee share ownership plans might also be changed, Sonjica said. The minister called on the industry to intensify efforts to improve safety, after her first joint meeting with the Chamber of Mines, the National Union of Mineworkers and the SA Mining and Development Association. She was appointed mines minister last year. The industry had failed to meet a 2003 target to reduce fatalities by 20 percent a year, she said. In the first five months of the year, 93 people were killed in mines in South Africa, with 49 of those at gold operations. "There's a haste to benefit from the boom in commodities, and in the process lives are lost," the minister said. "There isn't much commitment by chief executives." - Bloomberg

Vanity Fair Publishes Special Issue on Africa and Diamonds

21st June 2007 Tali Ayalon-Metser, Rachel Lieberman www.israelidiamond.co.il

Vanity Fair's July issue is dedicated completely to Africa. The issue, which was initiated and edited by the singer Bono, focuses on Africa, through the eyes of private individuals. The goal is to present Africa's challenges, promise and future. The renowned photographer, Annie Leibovitz, prepared 20 versions for the front page, featuring celebs such as George Bush, Condoleezza Rice, Archbishop Desmond Tutu, Bono, Madonna, Bill Gates and many more. All of the front pages are built as a chain letter; each picture features a different person in the center with another person standing alongside the first, supposedly passing on a message. Alongside the special edition is a 74-paged booklet dedicated to diamonds and jewelry. The booklet contains information about conflict diamonds. Advertisers include Tiffany & Co, Harry Winston, Cartier, Asprey and others.

De Beers Marine UPS Carat Production Forecasts

12th June 2007 Chamwe Kaira www.allafrica.com

The country's leading marine diamond producer, De Beers Marine Namibia, has increased its diamond production forecasts for the year from 970,000 carats to 1.1 million carats following a splendid first quarter performance by its vessels, managing director Otto Shikongo told the Economist. Last year, the company produced 1.018 million carats. "The current forecast for 2007 has been increased to 1.1 million carats. This is as a result of the excellent performance during the first half of the year," said Shikongo. The company will later this month commission a second crawler on the mv Ya Toivo, one of its fleet of five production vessels based in the Atlantic Ocean, at a cost of N$100 million, Shikongo said. The crawler will be used for ore extraction. Shikongo said until May, the mv Ya Toivo has been using one crawler for ore extraction. "De Beers Marine Namibia decided to commission a second crawler that is designed to be more efficient and reliable. In addition, by having two crawlers, it gives the maintenance team an opportunity to maintain one crawler while the second one is mining. This contributes positively to the overall vessel utilisation. The estimated increase in overall vessel utilisation is in the order of 15%," said Shikongo. Shikongo said the company is continuously increasing mining efficiencies through technology enhancements on the mining fleet. There is a team dedicated fulltime to research and development, he said. "Currently, a concept of dredging is being investigated. This mining concept is significantly different to the current technology. It is anticipated that the feasibility study will be completed in 2008," he said. In 2005, the company conducted a feasibility study to acquire an additional vessel. The feasibility study was concluded in 2006 and indicated that it was not economical to execute such a project. "This was mainly due to the sudden increase in the construction of a hull resulting from the upward swing in the shipping and oil markets during the time. The feasibility study indicated that the cost of such a project was in the region of N$2 billion. De Beers Marine Namibia continues to investigate affordable alternatives," he said.

Namibia's NDTC Not Yet Ready To Supply Local Rough

4th June 2007 Avi Krawitz www.diamonds.net

The Namibian Diamond Trading Company (NDTC), set up in January 2007 to handle sales and local processing of rough diamonds, has yet to distribute its gems to Namibia's diamond cutting and polishing companies, The Namibian reported. In an interview with the newspaper, NDTC board member Daniel Kali said the company was still in the process of setting up operations, importing machinery and technology and setting a clear supply criterion. NDTC was set up in January 2007 as a joint venture between the Namibian government and De Beers as a means to ensure that the local cutting and polishing sector is assured of rough supply. As the marketing arm of mining company Namdeb Diamond Corporation, also a De Beers-government partnership, NDTC undertook to supply 16 percent of Namdeb's rough production to the local market. Kali, meanwhile, could not say when the NDTC would start functioning, according to The Namibian. "There is a lot of work that needs to be completed before this process can commence. Not least of which is NDTC's technical readiness," the newspaper quoted Kali as saying. "We are currently installing the appropriate machinery and technology and will be commissioning soon." "All this work is happening at the moment," he added.

Diamond sector to shine

29th May 2007 Malose Monama www.fin24.co.za

Johannesburg - The South African diamond-cutting and polishing industry might yet thrive thanks to legislative changes. President Thabo Mbeki approved two bills last year amending the Diamonds Act. The amendments sought to promote local diamond beneficiation and "sanitise" the controversial diamond trade. The first and second Diamonds Amendment Acts brought the regulation of the diamond industry under government control for the first time. The amendments established a State Diamond Trader that can buy rough diamonds. The new law ensures more rough diamonds are polished locally. It also introduces a government-administered Diamond Exchange and Export Centre to limit access points for export and to deal with diamond smuggling. However, it will take much more than policy changes to realise a thriving diamond tertiary sector in South Africa. There are very few suitably skilled diamond cutters in the country. Many of them are in the twilight of their careers or no longer in the business. Apartheid and De Beers also ensured that there were few black diamond cutters. Investment in training is required and government will have to lead the effort. More legislation being considered South Africa might have to send diamond cutters to India and China for training and also relax labour laws to compete globally. Parliament is considering more legislation to discourage the export of rough diamonds through the Diamond Export Levy Bill. For years, South Africa has exported rough diamonds abroad. This practice has supported millions of jobs elsewhere. The bill provides for the levying of a tax on all exported rough diamonds. The levy rate will be imposed at 5% of the value of all exported diamonds. It is hoped that the levy will help close loopholes in the Diamonds Act and help establish a substantial local cutting and polishing sector. This will help the economy grow and also create employment. The Diamonds Act of 1986 made provision for a higher export levy (15%), but the mining companies took advantage of the many exemptions in the law to avoid paying the duty. Tsietsi Malakoane of the United Diamond Association of South Africa, which represents the emerging sector, said the government should ensure that the new law is enforced as soon as possible. "We have endured years of deprivation. The growth of our businesses and the industry as a whole has been stymied for too long," said Malakoane.

Namibia: Mining Still Number One

17th May 2007 Wezi Tjaronda www.allafrica.com

New in-depth report on the U.S. jewelry industry

09th May 2007 Tali Ayalon-Metser, Rachel Lieberman www.israelidiamond.co.il

Research and Markets has published its new and updated comprehensive report about the jewelry industry in the U.S. as well as foreign trade for the years 1996-2008. The report, which covers 150 pages, contains data current as of April 2007. It also features charts and tables that illustrate the content. In the report's preface, the company notes that the jewelry industry's revenue in 2006 came to $7.48 billion. Gross profits from revenue came to $2.356 billion.1, 564 new businesses connected to jewelry were opened in the U.S. in 2006. The volume of the industry's import and export in 2006 reached $15.25 billion. This report, which does not come cheaply (641 for the online version or 910 in hard copy), can serve as a significant tool in the decision-making process regarding activities in the American market, as well as for locating new markets. Among the subjects discussed in the report are costs starting from salaries and their ratio in relation to sales, via raw materials, shipping and other costs. The report also addresses issues such as pricing, import and export as well as major players in the industry. Finally, it analyzes the industry's financial condition during the past four years.

Namibia: Govt Backs Diamond Producers' Association

30th April 2007 Tonderai Katswara www.allafrica.com

MINISTER of Mines and Energy, Erkki Nghimtina, and Diamond Commissioner Kennedy Hamutenya are in Luanda, Angola, to join their counterparts from six diamond-producing African countries to discuss the forming of a diamond cartel, as the countries seek more control of their natural resources. The meeting, which starts today, will see government ministers and representatives from Angola, Botswana, the Democratic Republic of Congo, Namibia, South Africa and Zimbabwe discussing the need for an African Diamond Producers Association (ADPA) and how they can increase their influence on the US$13,1 billion (around N$92 billion) world market for rough gems. These countries produce more than half of the world's diamonds by value. Bloomberg last week quoted the DRC Deputy Mines Minister, Victor Kasongo, as saying the notion to form an association was initiated by producers last year. "We will establish the Opec of diamonds," Kasongo was quoted as saying. "We will form united diamond policies, so that we have more power in the international arena." The 12-member Organisation of Petroleum Exporting Countries (Opec), influences oil prices by regulating the production of over 40 per cent of the world's supply. Kasongo's views highlight speculations of frustration among African diamond producers who believe they are reaping the fruits of their resources, while countries like India, Israel and Belgium are getting most of the cake as the masters of the diamond trade. Hamutenya said Cabinet had sanctioned that Namibia should become part of ADPA, saying the country was way ahead of its counterparts when it came to beneficiation, regulating, monitoring and controlling the diamond industry, and would assist fellow members on a number of issues. This week Parliament ratified the statutes of the ADPA, proving Namibia's willingness to be part of this watershed group. "With regards to forming a syndicate, the attitude of many African producers today is that we want to be in control of our destiny. We know that other people from other countries want our diamonds for their own growth and development agendas, and that some of their interests and our interests diverge," he said. He went on to say pricing was a sensitive matter that affected all stakeholders, from the miners to retailers. "Today price is no longer artificial and supply driven as in the days when De Beers had a huge stockpile and could dictate price... That is why driving consumer demand is a major element in influencing price today." This association does not come without its problems. Hamutenya indicated that some diamond bigwigs in Belgium did not want to see the establishment of ADPA, but added that Africans were not fazed by this attitude. "Many ADPA members are now averse to dictates from people with vested interests in our diamond industry. At plenary in Luanda, we can talk about anything we want under the sun, as long as it has to do with our diamonds. What members agree on is limited by the mandates they bring along from their capitals," said Hamutenya. The Diamond Commissioner also noted that South Africa's new laws for the diamond mining sector would not affect the region negatively, but instead benefit diamond producers as they were a precedent in maximising benefits from SADC's natural resources. "They (SA) are not in conflict with us. Some of the things they want to do there are things we are doing here in Namibia. That is why in our ADPA objectives we talk about harmonisation of our policies and legislation. Our interests are very much aligned," he said. ADPA's objectives include promoting cooperation among members in policies concerning exploration, mining, cutting and polishing, developing human resources, exchanging information between member states, trading and transforming conflict diamonds into diamonds of peace. The Luanda meeting will also look into issues that continue to plague the industry such as conflict diamonds, beneficiation, the threat posed by synthetics and smuggling. Angola, Botswana, DRC, Namibia and South Africa are said to have accounted for 60 per cent of last year's world diamond output.

Namibia: Mining Still Number One

25th April 2007 Wezi Tjaronda www.allafrica.com

The mining industry generated N$11.4 billion in 2006, establishing itself as the backbone of Namibia's economy. The industry has seen tremendous growth after a decline especially in 2005, when it posted losses of N$400 million. Last year's figures represent a growth of 52 percent of the N$7.5 billion generated in 2005, and profitability of the industry's operations improved from a net loss of N$158 million in 2005 to a net profit of N$2.2 billion in 2006. Outgoing President of the Chamber of Mines, Mark Dawe, said in his review of the chamber's activities of 2006 last week that the industry had once again established itself as the backbone of the country's economy, surpassing all the other sources of Nambia's revenue. The Bank of Namibia in its 2006 report said the performance of mining was robust in 2006 compared to the preceding year mainly due to the strong demand for diamonds in the world market. The report said the output of the diamond industry was estimated to have increased by 23.6 percent in 2006 compared to a decline of 4.1 percent in 2005. But looking ahead, the bank's report notes that growth in value addition to the mining sector will reduce to 7.4 percent in 2007 because of an expected slowdown in diamond production. The year 2006 saw a significant contribution to the total mining revenue from non-diamond mining, which rose from 45.3 percent in 2005 to 51 percent in 2006. "The increased diversification of Namibia's mining sector away from diamonds is a very healthy development for the future of our country," said Dawe, adding that the decline is not due to a decline in diamond production but an increase in other metals and minerals during the period. Although diamond mining has always overshadowed the contribution of the non-diamond mining sector, 2006 was for the first time overtaken by the non-diamond mining industry in terms of its contribution to the value of minerals production. The total diamond production in 2006 declared to the Chamber of Mines amounted to 2.35 million carats with revenue of N$5.59 billion. Namdeb in 2006 reached two milestones, breaking the 1 million carat mark, the second time the company has broken the record, and the Government and DeBeers signing a sales agreement which will see the establishment of the Namibia Trading Company, which will handle all of Namdeb's production. Debmarine produce 1.018 million carats, Samicor Diamond Mining Company 262 000 carats while Diamond Field produced 7 000 carats. The outgoing president said 2007 is expected to be another record year for Namdeb with demand continuing to increase despite the effects of negative publicity from the Hollywood film industry. Despite the bright prospects, stone size is expected to reduce, as diamonds are increasingly becoming difficult to recover. Namibia also mines zinc, uranium, gold, copper, lead, fluorspar and salt. Dawe said as part of the chamber of mines' strategic planning process, the chamber concentrated on increased representation of the exploration members, with total exploration expenditure by the industry being N$310 million in 2006 alone. The members of the chamber in 2006 employed 8 706 people, including contractors with 7 125 being employed on a permanent basis.

De Beers warns of supply constraints

19th April 2007. www.israelidiamond.co.il

De Beers, the world's largest diamond supplier, is being increasingly constrained by supply shortages and political demands in southern Africa. In a recent letter to clients, De Beers' Diamond Trading Company (DTC) warned of reduced supplies, notably in South Africa, as a result of increasing pressure from other producing countries to supply their own local industries. It also warned clients in South Africa that supply of better quality 2 carats and larger goods will be constrained by De Beers' relatively limited production of this range size, which it said is substantially below the current purchases by South African-based clients, or sightholders. While De Beers has already warned for supply shortages, the company's difficulty is in meeting the ambitious targets of the governments in southern Africa and executing them with a global client base of 93 sightholders and limited supplies. In South Africa, the challenges appear to be intensifying as De Beers has less goods available with the recent closure of Cullinan and Namaqualand. At the same time, the government is putting in place a State Diamond Trader body which will be offered a proportion of its production for local diamond cutters in accordance with the new legislation. The letter also focussed on the need for clients in South Africa to start manufacturing a wider range of rough diamonds profitably by enhancing their manufacturing technology. South African-based clients need to consider how they can profitably take a broader range of goods, it said. These objectives are unlikely to be achieved without innovative thinking around enhancements to manufacturing technology and efficiency to optimise the local manufacture of the goods being made available. In addition, DTC said competition for supply from London, its traditional supply centre, is expected to become increasingly intense, as more goods are sold through the local DTC's in southern Africa. To meet the supply challenges in South Africa, it said it was considering only allocating to those clients, or 'applicants', that could demonstrate sufficient manufacturing capacity to handle the ranges of diamonds being sought.

Theft at Basel show

18th April 2007. www.israelidiamond.co.il

Thieves have stolen jewellery worth $825,000 from the world's biggest and most luxurious watch and jewellery fair in Basel, authorities said Saturday, the Associated Press (AP) reported. "It happened on Tuesday before the fair started," said Peter Gill, spokesman for the public prosecutor's office in the canton, or state, of Basel. The jewellery was grabbed when it was being brought to a stall in the exhibition hall for the Baselworld fair, he told the AP. "Nobody was hurt," he added. He declined to comment further to avoid compromising the ongoing inquiry. The theft is likely to be the largest in the fair's recent history, Baselworld spokesman Bernhard Keller told the AP. But he said that security at the fair was adequate. "We have very good security measures. There is no need to change anything," he said, adding that the show was continuing normally. More than 2,000 exhibitors from 45 countries present the latest products from diamond encrusted masterpieces to modest plastic models at the fair, which runs from April 12 to 19. In another incident, thieves stole jewellery worth about $115,000 from an Indian businessman who was on his way home from Baselworld on Saturday, police said. Thieves grabbed the man's suitcase while he was at the Zurich airport checking in for a flight, police said. No arrests had been made.

Diamond Giant Extracts More Gems

17th April 2007. www.allafrica.com

NamDeb has for the first time recorded unprecedented diamond production exceeding two million carats largely because of an increase in land-based production at the mine's No 3 Plant and more diamonds extracted from Pocket Beaches. The extraction of diamond production of 27 percent more gems is also being attributed to increased marine production in the year that ended 31 December 2006, stated the firm. Diamond sales revenue increased by 34 percent to N$5.4 billion in the period under review, mainly due to the increase in carats sold in 2006 when compared to 2005 when the global alluvial diamond leader was only able to sale gems worth N$4 billion. "The cost of sales has increased to N$3.6 billion from N$2.7 billion and this was impacted by higher equipment expenses, fuel price increases, increased mining activity, and normal inventory fluctuations," NamDeb's General Manager for External and Corporate Communications, Hilifa Mbako, stated in a media release issued yesterday. Taxes for last year amounted to N$989 million, which represents an increase of 51 percent over that of 2005, while total taxation represents 76 percent of pre-tax profits of 2005. Despite a background of substantial capital expenditure intended to lengthen NamDeb's operations, total dividends declared to shareholders amounted to N$270 million. These investments, apart from extending the lifespan of land-based mining will ensure continued employment of NamDeb employees. Mbako stressed the diamond miner continues to invest substantial capital on an annual basis to find new reserves and discover ways to economically mine and treat previously "uneconomic reserves," thereby extending the life of its land-based operations.

Industry leaders Meet to Confirm Commitment to the Kimberley Process

16th April 2007. www.israelidiamond.co.il

Last month, the World Diamond Council (WDC) announced that its fifth annual meeting will be held at the David Citadel Hotel on May 9 and 10th in Jerusalem, Israel hosted by the Israeli Diamond Industry. The meeting will focus on how the industry, governments and civil society groups can and need to work together to focus the success of the Kimberley Process to affect real change for all members of the diamond industry, specifically within the alluvial sector, which is the most susceptible to conflict. In addition, the meeting will review the past success of the education campaign of �06, in the hopes that together, all interested parties can work to refine the core message for 2007. In a statement the WDC wrote, In 2006, the issue of conflict diamonds received global attention and the diamond industry had a unique advantage of having addressed this issue seven years ago with the creation and implementation of the Kimberley Process. However, it is our responsibility and obligation to not only continue the success of the Kimberley Process, whereby 99.8% of the world's diamonds are from conflict-free sources, but to also move the dialogue forward to address the issues surrounding conflict, such as working conditions and alluvial mining. Meeting organizers noted that this year's speakers are some of the most influential in the diamond industry, whose continued support moves the industry ahead in the eradication of conflict diamonds. Scheduled Speakers: Gareth Penny, Managing Director, De Beers Sergey Vibornov, President, Alrosa Lev Leviev, Chairman, Leviev Group of Companies Ernie Blom, President, World Federation of Diamond Bourses Jeff Fischer, President, International Diamond Manufactuers Association Gaetano Cavalieri, President, World Jewellery Confederation (CIBJO) We are honored to have such a distinguished group of individuals join the WDC for our fifth annual meeting. It is my hope that this year's meeting will solidify the need for us to focus our efforts and work together. We hope to come out of the two day conference with some tangible results and specific ways that all of us, industry, government and civil society can make a difference said Eli Izhakoff, Chairman of the World Diamond Council.

Namdeb nets bigger diamond mining profits for 2006

13th April 2007. By: Rodrick Mukumbira www.mineweb.net

"It was an impressive year for Namdeb with major milestones scored," said Hilifa Mbako, the company's group manager: external affairs and corporate communication Thursday, as Namibia's leading diamond producer posted a widened profit for the year ended December 31, 2006. "The year was characterised by increased production and expanded partnerships between management, employees, contractors and joint venture partners," added Mbako. Namdeb is a 50-50 partnership between the Namibian government and the world's largest diamond mining company, South African Oppenheimer family-controlled De Beers. During the year, the company realised several milestones. Namdeb's profits before tax increased to N$1.3 billion (US$183.1 million) in the year, up from N$777 million (US$108.4 million) at the same period in 2005 - a 67 percent increase, which the company attributed to improved sales volume, a mixed and favourable exchange rate. After tax, the company netted profits of N$305 million (US$42.5 million), up from N$122 million the previous year. Diamond sales during the year amounted to N$5.3 billion (US$738 million), a 34 percent increase compared to N$3.9 billion in 2005 after the company's diamond production exceeded its target of two million carats to produce nearly 2.2 million carats. Carats sold increased by 27 percent generating N$3.6 billion (US$502 million) from N$2.7 billion in 2005, due to increased land and marine production, the company said. But it added that the figure was impacted negatively by higher equipment expenses, fuel price increases, increased mining activity, and normal inventory fluctuations. Land production was at 1.120 million carats, up from 818,000 in 2005, while the company's marine operations accounted for 1.045 million carats from 894,000 in the comparative year. The cost of sales increased by 33 percent due to increased mining activity, the company said, and it paid taxes amounting to N$989 million to the government, an increase of 51 percent over that of 2005 at N$655 million, while the total taxation represents 76 percent of pre tax profits (2005: 84 percent). Total dividends declared to the shareholders amounted to N$270 million, which Namdeb said was achieved "against the background of substantial capital expenditure intended to ensure Namdeb's future sustainability". Namdeb Managing Director, Inge Zaamwani attributed to an increase in land-based production at the mine's No 3 Plant, Pocket Beaches as well as increased marine production, while Mbako said the company's flagship Oranjemund mines should not be ruled out. Despite concerns raised by Mineweb in September last year of declining carat size per stone, Mbako said this did not have an impact on the company's impressive results. "The carat size was average [at 0.45 percent]. As far as I am concerned the carats produced show an improvement," said Mbako. He said in 2006 the company also took measures to counter threats of a declining land based resource base. "Namdeb continues to invest substantial capital on an annual basis to find new reserves and discover ways of economically mining and treating previously uneconomic reserves, thereby extending the life of the land operations," said Mbako. He added, "In 2006 alone, cash used in investing in land-based activities reflected an increase from 2005 of 124 percent or N$243 million. This increase is part of a planned investment strategy to increase profitable production from land based resources. "Prospecting and R&D include a substantial investment in the future especially on the Marine Dredging project. Several strategic projects were progressed during 2006. These projects, which include mining of beach accretion along the sea - something we have not been doing - and further out to sea will, apart from extending the life of land based mining, also secure continued employment for many Namdeb employees." The company has also initiated a 20-year turn around plan, divided into phases of five years, which will see it increasing its production to profitable levels, at the same time investing more in finding new reserves. "Our future strategy requires an on-going capital injection," said Mbako.

Sarin Releases Two New Mapping Products

12th April 2007. By: Rachel Lieberman www.israelidiamond.co.il

Sarin Technologies has recently released two new diamond mapping products that provide an unprecedented view of the interior and exterior of rough diamonds. The DiaExpert Eye offers an intricate study of the diamond's interior, thus enabling accurate detection and charting of inclusions. The machine is capable of viewing inclusions as fine as VS1 in all color ranges. The TruScan is based on laser-mapping technology and enables the accurate detection of concave areas and grooves on a rough diamond. The technology provides a 3D model which allows the manufacturer more effective planning of his polishing approach.

India: We'll Replace Belgium as the Diamond Trade Center

11th April 2007. By: Tali Ayalon-Metser, Rachel Lieberman www.israelidiamond.co.il

India is determined to replace Belgium as the world's diamond trading center. The Vice Chairman of the Gems and Jewelry Export Promotion Council (GJEPC), Vasant Mehta, tossed the gauntlet while leading an Indian industry delegation in China. He noted that India has opened up and offers good facilities. He added: "The government is offering good support." According to Expressindia.com, he stated: "We are keen to take the role out of Belgium." He also noted that the task would not be too difficult because the ten leading companies in Belgium are owned by Indian companies. Mehta claimed that India is already a major manufacturer and said there was no reason why it should not become a leading trade center as well. While admitting that Dubai also aspires to become the global center by offering tax advantages, he noted that India has reduced import duty on polished diamonds to 5%. He added: "We are hoping that the duty will come down to zero in another year or so." Mehta noted that increased job opportunities and foreign currency would compensate for the loss of revenue. The Indian press recently published data about the export of polished diamonds up to the end of February 2007. Due to a decline in US demand and volatile gold prices, the export of polished diamonds from India decreased by 6% during the first 11 months of the fiscal year. However, total exports, including diamond-studded gold jewelry and colored gem stones, grew by 5% during this period. The industry forecasts a continued downward trend in polished diamond exports in the near future. Indian experts expect the situation to improve during the fiscal year of 2008, which begins in April 2007.

Zimbabwe Loses US$400m Through Diamond Looting, Smuggling

10th April 2007. Victoria Ruzvidzo www.allafrica.com

ZIMBABWE has lost at least US$400 million over the last nine months through looting of Marange diamonds and smuggling of the precious stones. Reserve Bank of Zimbabwe Governor Dr Gideon Gono yesterday stressed the need for the Government to come up with a robust system for mining and marketing diamonds that guaranteed maximum benefit to the people of Zimbabwe.Investigations over the past few months have revealed that hotels in Mutare were every weekend full of top officials and foreigners, some of whom employed runners who would buy diamonds during the week only to hand them to their principals in hotel rooms during the weekends. This could not be allowed to continue, said Dr Gono, while addressing students, lectures and the Gweru business community at the Midlands State University yesterday. "The diamonds are in Zimbabwe, in areas where Government enjoys full support, no opposition, no foreign government interference, no sanctions, no drought. What more do we want? We are our own worst enemies," said Dr Gono. "There is no other area where implementation inertia is as glaring as that of the area of diamond mining. It's almost criminal the extent to which we are sitting on such a resource. Showing indecisiveness while Rome is burning. "We are struggling to get foreign currency for food, drugs, fuel and debt servicing among others. We are also sitting on methane gas -- the largest reserves in sub-Saharan Africa -- yet we are crying for foreign currency. Diamonds were among the most valuable and precious minerals produced in this country with immense potential to contribute significantly to foreign currency earnings. This, therefore, called for the diamond sector to be treated as a special sector, which dealt with the high value, low volume mineral requiring close monitoring throughout the mining and marketing processes. In this regard, the diamonds -- both rough and polished -- could be used as a national reserve asset under the custody of the central bank. These could then be converted to foreign currency as and when necessary. The central bank could also use the diamonds to secure lines of credit and boost its foreign currency reserves. "Lessons could be drawn from countries such as Namibia and Botswana where the largest diamond producers -- Namdeb and Debtswana -- are 50:50 joint venture companies between De Beers and the respective governments," said Dr Gono. Under this arrangement, the two governments were directly involved in all activities from mining to marketing of diamonds. Furthermore, the existence of a diamond valuer in both countries to counter check that all diamonds were sorted and valued correctly meant that the respective countries would enjoy full benefits from the exploitation of the mineral.

Namibia`s apex bank forecasts trade surplus

5th April 2007. www.angolapress-angop.ao

Windhoek, Namibia 03/14 - Namibia will for the first time realise a trade surplus of 1.7 percent of GDP in 2006 and the country`s economy, spurred by mining, is expected to grow by a robust 4.8 percent in 2007 from 4.6 percent recorded in 2006, according to Namibia`s central bank. The Bank of Namibia (BoN), in its 2007 economic forecast, however said Tuesday Namibia would suffer a trade deficit of 2.8 percent of GDP in 2007. Mining sector, particularly diamond and uranium mining, are expected to spur economic growth. The mining sector is projected to grow by 7.4 percent. The sector, the largest foreign currency earner for Namibia, grew by 13.6 percent last year, BoN said. Growth in diamond mining, the economy`s mainstay, is forecast at 7.4 percent from an estimated 23.6 percent in 2006. The central bank said that increase in offshore mining activities are going to be the major driver in diamond production. The bank forecasted growth in the highly priced uranium sector at 7.4 percent against a contraction of 13.1 percent last year. The poorly performing agricultural sector, which suffered a 2.8 percent decline in 2006 will grow by 3.2 percent this year whilst the fishing sector, which slumped four years ago is expected to slightly recover. Increase in diamond output and record high prices of the precious mineral could see overall exports, as a percentage of GDP surging topping 51.1 percent from 55.8 percent in 2006.

Kimberley Process in Transparency Drive

4th April 2007. www.israelidiamond.co.il

The diamond industry's Kimberley Process yesterday published production figures for the first time as part of a transparency initiative to counter the conflict diamond trade, AFP reported. The industry produced 11.5 billion dollars (8.6 billion euros) worth of rough diamonds in 2005, the last year for which data is available under the Kimberley certification scheme, according to the report. With a 25% market share in terms of value, Botswana was the leading producer, followed by Russia with 22%, Canada with 12%, South Africa with 11% and Angola with 9%. But in terms of volume measured by carats, Russia was the biggest producer, ahead of Australia and the Democratic Republic of Congo (DRC) both with 19%, followed by Botswana with 18% and South Africa with 9%, it said. The European Union was the biggest destination for rough diamond imports, taking in 39% of the total in value terms. The EU was followed by India as the second biggest rough diamond importer with 24% of the total, followed by Israel with 16%. The European Commission, which currently holds the rotating presidency of the Kimberley process, said that figures for 2006 would be published later this year. "The publication of diamond trade data shows the growing strength of the Kimberley Process and its commitment to constant improvement," EU External Relations Commissioner Benita Ferrero-Waldner told Agence France-Presse. "While there was not consensus on this degree of transparency when the scheme began, all participants now agree to the new level of openness," she added.

Blood Diamond: Namibia clean

3rd April 2007. www.news24.com

Windhoek - Diamond-producing Namibia launched an international advertising campaign on Friday to counter any adverse effect of the Warner Brothers thriller Blood Diamond. The movie, starring Leornado DiCaprio, highlights the role of the precious gem in Sierra Leone's brutal 1990s civil war. Diamond producers and dealers are worried it could trigger public concern about illicit "conflict diamonds" and hurt demand. Namibian officials said a global TV campaign built around the theme "Diamonds are forever" would start airing on Friday, coinciding with the movie's theatre debut in the United States. A national print and billboard campaign was launched in the Southern African country on November 30 in the presence of President Hifikepunye Pohamba, mining industry officials and representatives of jewellers' associations. "What has been driving us in the ministry of mines and energy is the need to protect and safeguard the image of our product and, of course, the image and integrity of our own diamond industry," Mines and Energy Minister Erkki Nghimtina said. He said no "conflict diamonds" - illicit gems sold by rebel groups in Africa to fund arms purchases - originated from Namibia, and the country wanted to "tell the story of what good diamonds do for Namibia". He said Namibia was not against the production or release of the movie nor was it worried about its anticipated popularity. But it was keen for viewers to be aware it is a fictional depiction of recent history. "The subject matter is highly emotive and is based in the terrible civil war in Sierra Leone in the 1990s. Sierra Leone is now at peace. Blood Diamond is therefore a story about the past," he said. Diamond exports account for 10% of Namibia's gross domestic product. The vast desert country is no stranger to Hollywood hype. It grabbed world headlines earlier this year when Hollywood couple Angelina Jolie and Brad Pitt had their baby there. Blood Diamond was shot on location in nearby Mozambique.

NAMIBIA'S DIAMOND SECTOR PROJECTED TO GROW BY 7.4% IN 2007

2nd April 2007. www.diamondintelligence.com

Namibia's mining sector is projected to grow by 7.4 percent this year, from an estimated growth of 13.6 percent in 2006, says a report by the Bank of Namibia. The growth in the sector is mainly attributed to diamond and uranium production. The country's diamond sector is projected to grow by 7.4 percent this year, from an estimated growth of 23.6 percent in 2006, mainly due to an increase in offshore mining activities. The global consumer demand for diamonds is expected to grow in line with world GDP in the next few years and could contribute positively to diamond output, explains the report.

Namibia Pact On Diamonds

31st March 2007. from New York Times www.nytimes.com

De Beers, the world's largest diamond producer, today gave up its monopoly on diamond mining in Namibia in exchange for a guaranteed stake in the industry for 25 years. Under an agreement signed by President Sam Nujoma and Julian Ogilvie Thompson, De Beers chairman, a new mining concern split 50-50 between the Government and De Beers will take over all Namibian diamond mining. The agreement was a compromise between the domination enjoyed by De Beers in Namibia since 1919 and the desire of the Government to control the nation's mineral wealth. Under the agreement, De Beers' Consolidated Diamond Mines Ltd. becomes the Namdeb Diamond Corporation, with De Beers and the Government each owning 50 percent. Each will have equal representation on the board of directors and decisions will be made by consensus. Namdeb will retain all of its predecessor's diamond assets and continue to sell its diamond output exclusively to De Beers on the basis of five-year renewable sales contracts.

Madison Dialogue White Paper Addresses Diamond Development Initiative

30th March 2007. by Jeff Miller www.diamonds.net

The issue of small-scale miners remains an important topic in the press -- as evidence of The New York Times' front-page story on Sierra Leone from March 25, 2007. Consumers continue to ask jewelers about these issues, especially those young consumers who have grown used to asking: "Did you source your products responsibly?" In a joint statement by the Council for Responsible Jewellery Practices and Jewelers of America on March 29, the groups marked the debut of The Madison Dialogue website to foster open communication and collaboration between the jewelry industry, NGOs, and interested parties. Participants in Madison Dialogue are working on a number of initiatives to promote sustainable development, best practice, and certification or assurance in the diamond pipeline. These include the Kimberly Process, the Diamond Development Initiative, the Initiative for Responsible Mining Assurance (IRMA) and efforts to certify fair-trade gold, diamonds and other minerals. The Madison Dialogue (http://www.madisondialogue.org/) published a white paper on the Diamond Development Initiative, which goes beyond the Kimberley Process to benefit artisanal diamond miners and their communities the group announced. The first white paper was entitled "A Different Kind of Diamond Mining," and written by Ian Smillie of Partnership Africa Canada. The Diamond Development Initiative (DDI) Smillie wrote seeks to break new ground in an effort to improve the lives of artisanal (small-scale) diamond miners, by going beyond the Kimberley Process to address economic development. DDI pursues policy solutions and real on-the-ground advances, which ensure miners and their communities reap a fair share of the economic benefits generated by the diamonds they extract. The DDI is also unique in that it seeks to bring together different stakeholders from government, industry and civil society from the outset. Participants in the DDI include Partnership Africa Canada, the Foundation for Environmental Sustainability and Security, De Beers, the Rapaport Group, the International Diamond Manufacturers Association, and the Communities and Small-Scale Mining Secretariat of the World Bank. "The movie 'Blood Diamond' told an effective story of the 1991-2002 conflict in Sierra Leone and the human rights abuses fueled by the trade in diamonds there," said Smillie. "The Kimberley Process played an important role in addressing these kinds of conflicts. But Kimberley is only half the solution to preventing future conflicts over diamonds. The other half is what DDI addresses: Making a concerted effort to ensure that diamond mining and cutting provide economic benefit to the miners and mining communities."

Diamond industry is important for Namibia

29th March 2007. by Korir, African Press in Norway www.africanpress.wordpress.com

Windhoek (Namibia) Namibian President Hifikepunye Pohamba said Monday that the diamond mining industry is an important contributor to Namibia's economic development. Speaking at a special function ... Pohamba described the mining industry as one of the backbones of the country's economy. Therefore he said it is for this reason that his government has done everything in its power to provide a conducive environment for the diamond mining industry to thrive since the country's independence 17 years ago. "The very fact that we are shareholders in the industry shows that we firmly believe in the future of the industry in Namibia," he said. Pohamba added that it was pleasing to note that the commitment being witnessed at the function in the form of a diamond award by DBMN is indeed a commitment to making tangible and measurable contribution towards the achievement of the government's Vision 2030. Pohamba told the gathering that his government has also made a lot of progress in developing the Namibian diamond mining industry and providing a conducive environment for mining companies to prosper and for the people of Namibia to benefit from the industry.

Zimbabwe Faces International Diamond Trade Ban

28th March 2007. www.allafrica.com

ZIMBABWE'S chances of a diamond ban escalated last week amid revelations that a complaint had been lodged with the Kimberley Process Certification Scheme (KPCS) detailing how the international rules and regulations were violated as the wrangle over the right to mine diamond spilled onto the international spotlight. River Ranch and Bubye Minerals are fighting over the Special Grant 1278 that gives the right to mine diamond. The Mines and Minerals Act does not allow players without authority to mine in an area. The development is likely to pile pressure for a diamond ban on Zimbabwe after last month's complaint by the World Diamond Council to the incoming Chair of the Kimberley Process Karel Kovanda. The complaint concerned reports that rough diamonds from Zimbabwe's River Ranch mine and from Marange were possibly being smuggled illegally into South Africa for official export with the validation of a Kimberley Process Certificate. Standardbusiness heard last week that the complaint detailed how certain provisions of the KPCS were violated. Sources said last Friday that the complaint states there was no certificate accompanying each shipment of rough diamonds on export in violation of Section II (a) of the Kimberley Process Certificate. The complaint said that River Ranch Limited is unable to procure lawfully the necessary Certificates and as such the the stones were entering the marketplace in contravention of the Scheme and its principles. Standardbusiness also understands that Section III (a) of the certificate had been violated in that there was no duly validated certificate accompanying such shipment. Standardbusiness broke the story last month that stones from River Ranch Mine were taken into South Africa without the authority of the Minerals Marketing Corporation of Zimbabwe. The complaint also states that as stones from River Ranch Mine are leaving Zimbabwe territory and passing into at least one other Participants' territory without the required Certificate, the shipment is in breach of the Kimberley Process Certification Scheme. Standardbusiness heard last week there was no internal control to eliminate the presence of conflict diamonds from shipments of rough diamonds imported into and from its territory. It said that MMCZ which checks and verifies that the intended exporter has the correct documentation in relation to the claim(s) had adhered to the principles and provisions of the Kimberley Process by refusing to issue the necessary Certificates of Origin to River Ranch Limited. The complaint said that as a result of the refusal by MMCZ there is no independent evaluation of the product mined at River Ranch Mine, as to either quantity or actual origin. "The complaint said that there was no process to evaluate and then seal any parcels to prevent tampering. As such, the complaint said, there is no independent monitoring or control over any of the diamonds produced by River Ranch Limited," sources said Friday. The Kimberley Process Certification Scheme is a voluntary initiative, based on the principles of self-governance and willing compliance with the provisions agreed to by Participants. KPCS has 71 members. The tussle for the right to mine diamonds at River Ranch comes at a time there are claims of negotiations between Bubye and River Ranch "to settle the matter once and for all". However, Bubye denies the existence of such talks. Bubye director Adele Farquhar referred all enquiries to the company lawyers Terennce Hussein of Hussein and Ranchod.

Namibia Wants Larger Share of De Beers Marine Mining

27th March 2007. by Edahn Golan www.gemex.com.au

Negotiations are underway between the government of Namibia and De Beers over the country's stake in the diamond miner's local marine mining firm. Namibia seeks to raise its 30 percent stake in the diamond miner's Namibian marine mining firm, probably to a 50 percent share. De Beers Marine Namibia produced over 1 million carats in 2006. "The Namibian government is currently in talks to increase shareholding in De Beers Marine Namibia," Rob Smart, chairman of De Beers Marine Namibia said on Tuesday. "Indeed, some are saying why 30 percent and not 50 percent of the shareholding," Namibia President Hifikepunye Pohamba replied. The Namibian government's stake in De Beers Marine Namibia is through its 50 percent holding in Namdeb, jointly owned by De Beers. Namdeb produced more than 2 million carats last year, up from 1.77 million carats in 2005. The government's interest in marine operations follows a doubling in offshore production since 2002. Besides De Beers, Lev Leviev also owns a marine operation in Namibia.

Mining sector to grow 7,4% in 2007, says central bank

26th March 2007. by Felix Njini www.miningweekly.co.za

The Namibian mining sector - the country's main foreign-exchange earner - is projected to grow by 7,4% this year, slowing from last year's 13,6% growth rate, the Bank of Namibia said last week. And the country's economy is expected to expand by 4,8%, up from 4,6% in 2006. Growth in diamond-mining, the economy's mainstay, is forecast at 7,4%, from 23,6% last year. The central bank said that an increase in offshore mining activity is going to be the major reason for the expected improvement in diamond production. Namibia's largest diamond producer, Namdeb said recently that it is increasingly turning to marine diamonds, as its land-based deposits, which have been mined for centuries, are nearly exchausted. De Beers Marine Namibia, a subsidiary of Namdeb, last week celebrated producing a record one-million carats from the ocean floors, and hinted that marine mining in its Atlantic 1 concession will become the diamond producer's focal point. Diamond exports are expected to rake in N$3,9-billion in 2007, compared with from N$3,5-billion last year. "The world consumer demand for diamonds is expected to grow in line with world GDP in the next few years and could contribute positively to diamond output," the BoN said. The bank forecast that growth in uranium production at 7,4%, compared with a contraction of 13,1% last year. Australian Stock Exchange-listed Paladin Resources opened Namibia's second mine, Langer Heinrich Uranium, ahead of schedule late last year. (Namibia's main uranium mine is Rossing Uranium, which is majority-owned by Rio Tinto.) Two other uranium mines - Trekkopje, which is owned by UraMin, and Forsys Metals' Valencia uranium project - are expected to come on stream in the next two years.

Namibian mining up 20.9%, diamonds up 26%

23rd March 2007. by Rodrick Mukumbira www.theminingnews.org

Namibia's diamond output surged 26% on a year-on-year basis in the second quarter of the year anchoring a rebound of the whole sector, which expanded by 20.9%, the Bank of Namibia (BoN) said in its quarterly bulletin for September released this week. BoN said the overall mining sector grew by 20.9%, a noticeable growth compared to the 4.7% witnessed during the corresponding quarter of 2005. The growth is exceptionally higher than a sluggish 1.2% recorded during the preceding quarter, BoN said. The central bank attributed the positive performance in the mining sector, the mainstay of the Namibian economy to increase in diamond, uranium, gold and silver production. Zinc and copper production however suffered a slump due to restructuring at Namibia's sole copper mine, Ongopolo Copper mines and processing and plant disruptions at one of the country's zinc mines. Diamond output, which anchors the country's economic growth increased by a remarkable 26% on a year-by-year basis and the BoN said that the good performance observed in diamond output is underpinned by mining in the areas with good diamond resources and the favourable exchange rate. During the second quarter, diamond export earnings however suffered a slight 1% decline on quarter-to-quarter analysis but still raked into the country N$1.8 billion. The BoN said that diamond export value however rose year-on-year by 59% from N$1.1 billion. Production of uranium, which is increasingly gaining dominance in Namibia's economy, grew by 13% as investors rush to extract yellowcake. Namibia currently has two uranium mines, Rossing Uranium and Langer Heinrich Uranium Mine (LHU), which is just coming on stream.

Return of diamonds to fuel Namibia economy

22nd March 2007. By staff writer www.afrol.com

afrol News, 16 November - After some declining years and an impression that the diamond age in Namibia's economy were fading out, gems are making a comeback. Last available statistics show that the Namibian gem trade has boomed by 26 percent since mid-2005, and the industry keeps investing in diamond mining.

According to the September 2006 Quarterly Bulletin, recently released by the Bank of Namibia, "The rebounding performance experienced" in the mining sector during the second quarter of 2006 "was highly noticeable." The entire mining sector had expanded by 20.9 percent since the same period last year, with a large increase in diamond, uranium, gold and silver production.

The most notable increase, however, had been in diamond mining. "The diamond output increased remarkably by 26.0 percent on a year-on-year basis. The good performance observed in the diamond output is underpinned by mining in the areas with good diamond resources and the favourable exchange rates," the Bank of Namibia report said.

This new growth in Namibia's diamond sector contrasts the decline in previous years. Only in 2002, the value of Namibia's total diamond mining as part of the gross domestic product (GDP) was over Namibia dollars (N$) 3.4 billion. By 2005, this had dropped to only N$ 2.7 billion.

Diamond mining had been the major economic activity in Namibia since early colonial times and in particular during the South African rule. Many of the best diamond mines in the country thus have seen their heydays and getting hold of new quality gems usually costs large investments. As a result, an increasing part of Namibia's diamonds is mined offshore using unique technology.

The increasing difficulties in getting hand on quality gems are also reflected in the otherwise positive Bank of Namibia statistics. While this year's boom mostly reflected an increased volume as measured by the number of carats exported, there was a slight decrease in the value of diamonds exported. "This is a manifestation of the fact that a host of factors such as the diamond shape, size and colour affect the export value of diamonds," according to the Bank report.

During the second quarter of 2006, Namibian diamond export earnings thus had declined by 1 percent, quarter-on-quarter, to N$ 1.8 billion. The diamond export value, however, rose year-on-year by 59 percent from N$ 1.1 billion.

On a longer term, Bank statistics also show that diamond mining is getting less important to the Namibian economy. While diamond mining contributed with over 10 percent to Namibia's overall GDP only in 2002, this has been dropping to around 7 percent in 2005, while it could increase somewhat this year. Statistics indicate that mining, while still important, is slowly losing out industry and services as the motors of Namibia's economy.

Still, the Namibian government is strongly dependent on diamonds. According to a recent speech by President Hifikepunye Pohamba, diamonds constitute more than one third of the country's export earnings and Namibia's own diamond producer, Namdeb, is the country's by far largest tax payer. The sector thus has a bigger importance to the national treasury than to GDP and President Pohamba sees continued large-scale gem mining as key to achieving the country's long-term development plans.

Also the Namibian diamond industry remains widely optimistic. World market prices for rough and cut diamonds have steadily risen for over a decade as demands only increase, and the last year's slightly negative trend is believed to be only temporary. As specialists believe there to remain very few undiscovered major diamond sites in the world, the industry is willing to invest to make old fields more profitable.

In Namibia, much of the investments are going into the offshore harvesting of diamonds that rivers flushed into the ocean thousands of years ago. According to the latest updates by companies such as Diamond Fields and Bonaparte Diamond Mines, the offshore areas known to be covered with diamonds are getting bigger every day as exploration goes on.

A total of 291 gem quality diamonds weighing 135.92 carats had been recovered during a resource development sampling programme outside Namibia's town of L�deritz in early November, Diamond Fields reported. The grid-based sampling results had shown "near-continuous diamond mineralisation over a substantial cumulative area of approximately 290,000 square metres." As a result of the technically advanced exploration, the company is by now making a fortune on Namibian diamonds.

Financial Difficulties at Alexkor

21st March 2007. By Rachel Lieberman www.israelidiamond.co.il

According to reports, South Africa's state-owned diamond mining company Alexkor has been experiencing financial difficulties due to a combination of lack of funding and unproductive offshore mining operations, in addition to a problematic land claim. Alexkor is facing decreased carat production due to unfulfilled expectations in its offshore mining operations. In addition, the company's equipment and plant infrastructure are out-dated. The company is now facing a land claim by the community of Richtersveld, where the mine is situated. The diamond mining giant is reportedly planning some restructuring and downsizing, meaning that some of Alexkor's 1400 employees may be facing looming unemployment.

Diamond star thrills astronomers

20th March 2007. By Dr David Whitehouse www.news.bbc.co.uk

Twinkling in the sky is a diamond star of 10 billion trillion trillion carats, astronomers have discovered. The cosmic diamond is a chunk of crystallised carbon, 4,000 km across, some 50 light-years from the Earth in the constellation Centaurus. It's the compressed heart of an old star that was once bright like our Sun but has since faded and shrunk. Astronomers have decided to call the star "Lucy" after the Beatles song, Lucy in the Sky with Diamonds. Twinkle twinkle "You would need a jeweller's loupe the size of the Sun to grade this diamond," says astronomer Travis Metcalfe, of the Harvard-Smithsonian Center for Astrophysics, who led the team of researchers that discovered it. The diamond star completely outclasses the largest diamond on Earth, the 546-carat Golden Jubilee which was cut from a stone brought out of the Premier mine in South Africa. The huge cosmic diamond - technically known as BPM 37093 - is actually a crystallised white dwarf. A white dwarf is the hot core of a star, left over after the star uses up its nuclear fuel and dies. It is made mostly of carbon. For more than four decades, astronomers have thought that the interiors of white dwarfs crystallised, but obtaining direct evidence became possible only recently. The white dwarf is not only radiant but also rings like a gigantic gong, undergoing constant pulsations. "By measuring those pulsations, we were able to study the hidden interior of the white dwarf, just like seismograph measurements of earthquakes allow geologists to study the interior of the Earth. "We figured out that the carbon interior of this white dwarf has solidified to form the galaxy's largest diamond," says Metcalfe. Astronomers expect our Sun will become a white dwarf when it dies 5 billion years from now. Some two billion years after that, the Sun's ember core will crystallise as well, leaving a giant diamond in the centre of the solar system. "Our Sun will become a diamond that truly is forever," says Metcalfe.

Namibia`s apex bank forecast trade surplus

19th March 2007. www.angolapress-angop.ao

Marine diamond sector braces for leadership in Namibian production

16th March 2007. www.mineweb.net

De Beers Marine Namibia (DBMN) is gearing to take the leadership position in Namibia's diamond production as the country's land reserves enter their twilight years. Author: Rodrick Mukumbira

WINDHOEK - De Beers Marine Namibia (DBMN), a company owned by Namdeb (30 percent) and diamond mining giant De Beers (70 percent), has scored a first in its seven-year history. It recovered 1.018 million diamond carats from the Atlantic Ocean off Namibia's Coast in 2006, as indications point to a declining land reserve base. The Namibian government, also a major player in the diamond mining sector through Namdeb - in a 50-50 partnership with De Beers, is however aware of the dwindling land diamond reserves and is calling on "our efforts and resources" to be channelled towards marine diamond resources "considered to be the future of our diamond industry", said Erkki Nghimtina, Minister of Mines and Energy, Monday. "De Beers Marine Namibia has been leading the way in this process [of shifting to marine diamond resources], and it has managed to increase its production from a mere 506,000 carats in 2002 to over 1 million in 2006," Nghimtina told a celebration to mark the company's milestone. The government is already talking with De Beers to see how its stake in DBMN could be increased from the present 30 percent, DBMN's chairman Rob Smart also said Monday. Smart however cautioned Namibia about expectations from marine mining due to high costs and little knowledge of the ocean floor. "Recent estimates put the purchase of a new marine vessel at approximately N$3 billion (US$404 million), this represents more than five percent of Namibia's GDP, and it's an astronomical figure. Much as we want to think we do, we actually know very little about the ocean floor," Smart said. He added, "But Namdeb can still have a sparkling future if we invest correctly, get the right people and have favourable exchange rates." Namdeb was the first to voice concern on the dwindling resources in September last year. Likening mines to humans that also go through the ageing process, Inge Zamwani, Namdeb's managing director was quoted by Mineweb last year as saying that by 2009, marine diamond mining activities would have bypassed land mining. At that time marine activities had recovered 537,000 carats, while land based operations had produced 544,000. Namdeb noted that the stone size was also decreasing with the average carat per stone size for 2006 having been 0.43 down from 0.46 in 2005. Inge called for more investment in more in activities to extend the life of Namdeb's land based mining operations. She said Namdeb would pump in N$900 million (US$121 million) in two years to ensure the company's future sustainability. The diamond mining sector represents up to 10 percent of Namibia's Gross Domestic Product and 40 percent of the country's export earnings. The sector employs close to 5,000 people and is considered the largest employer after the government. The marine diamond mining sector has since been identified as the future of the industry in Namibia and DBMN says it will continuously invest in new technologies to improve its efficiency - to make up for the shortfall that would be created once land based resources are depleted. DBMN operates five production vessels, four of which use the drill-ship technology while the fifth operates on crawler technology. DBMN says its contribution to the Namibian economy has been significant. According to managing director Otto Shikongo, in 2006 revenue from its diamonds exceeded N$2.6 billion from which it paid royalties of over N$260 million to the government. DBMN's contribution to Namdeb's profits was about N$700 million and the company spent over N$350 million on training and development, including N$23 million that was handed out as bursaries for university students. Marine diamond mining in the country dates back to 1957 when Marine Diamond Corporation (MDC) began exploration off L�deritz in south eastern Namibia. MDC was later bought by De Beers, following which De Beers Marine South Africa was formed in 1983. Its first production was in 1990, at 29,000 carats. Meanwhile, West Perth-based Bonaparte Diamond Mines Ltd has sold the first parcel of diamonds recovered from its project off the coast of Namibia, reaping over US$384,000 from the sale. The diamond miner sold 1,343 carats, including a 1.78 carat fancy pink diamond for US$33,098 in Belgium last week at an average price of US$330 per carat. Bonaparte is mining the Diaz Prospect 1 off the coast of Namibia with Canadian-partner Diamond Fields International Ltd.

Marine diamond mining still a challenge

15th March 2007. www.namibian.com

Tonderai Katswara

WITH diamonds on land depleting, De Beers Marine Namibia (DBMN) has proven that diamond mining in the country could still flourish with a historical achievement of over one million carats mined last year. The company managed to extract 1,018 million carats from the Atlantic Ocean off Namibia's coast and this was the first time that this level of production was realised from that part of the sea. Although this milestone was achieved, marine diamond mining is said to be a big challenge which requires heavy capital investment and skills for positive results to be gained. Speaking at the De Beers Marine Namibia celebration dinner to mark the accomplishment, in Windhoek on Monday, DBMN Chairman Rob Smart said as Namdeb was dealing with its inevitable future, it was time for DBMN to position itself into the leadership role of carat production. Smart was, also quick to add that much still needed to be done in this mining field, and the country was cautioned to be realistic about expectations from marine mining. He added that the cost of mining at sea was very high and consumed a lot of diesel, which was very costly given the volatility of oil prices. Another problem was that the company was losing marine diamond mining experts to other parts of the world where they were offered better remuneration. "Much as we want to think we do - we actually know very little about the ocean floor. We know more about the surface of the moon than the ocean floor, therefore, we are really mining in unknown territory," he said. DBMN operates five production vessels, four of which use drill-ship technology and while one uses crawler technology. According to Smart, recent estimates put the purchase of a new marine mining vessel at an astounding figure of approximately N$3 billion. Last year revenue from DBMN diamonds to the economy was over N$2,6 billion, with around N$260 million directly to the Government. Guest of honour at the event, President Hifikepunye Pohamba said the state had a duty to see that profit from its natural resources benefit all Namibians. Pohamba touched briefly on the new Namdeb sales agreement which paves way for 16 per cent of Namdeb diamonds to be sold to local cutting and polishing factories. He said although, they had been disgruntlements within the industry of 16 per cent being a small amount, the President said this was the way forward as 16 per cent was a step in the right direction towards value addition of Namibian gems.

CIBJO: Mzolisi Diliza Speech on Responsible Mining

14th March 2007. www.diamonds.net

I would like to discuss today the issue of responsible mining, and how this ultimately assists in creating a viable and sustainable jewellery industry. Within this framework I also wish to highlight some of the problems that can undermine the survival of the mining sector and its ability to support related industries.

I will start by expounding on the very positive contribution of mining to society and the economy as a whole, and not just downstream beneficiation. The mining industry used to, and occasionally still does, suffer from bad press owing to safety records, environmental degradation, and social dislocation.

Although there are still many challenges to be overcome, the mining industry has made tremendous strides in addressing safety, environmental, economic and social concerns to the benefit of the broader population. Many mining operations and companies have been recognised for their leadership in aspects such as partnerships, research, rehabilitation, water treatment methodologies, improved infrastructure, and increasingly transparent disclosure of operating and governance practices through reporting.

The success of a mining company is no longer measured exclusively by the volume of ore or minerals mined but also by how much it invests in social upliftment programs. To support this aspect of the mining sector the Chamber of Mines hosts a two-yearly Sustainable Development Conference, which acts as a platform for sharing good practices in promoting sustainable development. In addition, the Chamber publishes a two-yearly sustainability and transformation report that outlines the advances made by the industry in achieving specific targets. These targets relate to, among others, combating poverty and HIV/AIDS, providing housing, promoting skills development, and achieving transformation in the industry.

Aside from sustainable development initiatives there are other contributions that the mining sector makes to economic and social upliftment. Mining is widely acknowledged to be the backbone of South Africa's highly industrialised economy. Much of the country's original infrastructure, world-class financial services, manufacturing industry and services industries are attributable to the mining sector. Multiplier effects extend the role of mining in the economy in the form of the development of associated industries that supply the mines, infrastructure in outlying areas where the mines are located, and skills development and education.

Many of the mining companies have programs to empower local people in the industry through ownership and procurement from local sources. The multiplier effects of mining in South Africa are estimated to be two and a half times the direct effect of the industry. Elsewhere in Africa mining has also played a crucial role in economic prosperity. In Botswana and Namibia, diamond mining is the largest single industry and is an important contributor towards GDP, employment and export earnings. It is true that resource wealth in Africa has not always translated into economic and social development. Poor institutional frameworks and governance, together with other factors, have spawned the trade in "conflict" diamonds. In a clear show of responsible action diamond mining companies, with the co-operation of government, were quick to institute measures to curb the illicit trade of diamonds. Through the Kimberley Certification Process conflict diamonds now account for less than one percent of the world's traded diamonds.

Responsible mining initiatives do not end in the environmental and social development domains. In keeping with government objectives to add value to local resources, mining companies, although not directly responsible for downstream beneficiation, have been participants in a range of activities to promote jewellery manufacture and diamond cutting. There is often the impression that little to no beneficiation takes place in South Africa. This is a misguided perception. Statistics indicate that between ten and 15 tons of gold are fabricated into jewellery each year in South Africa, of which five to six tons are exported. On the platinum side, about 15 percent of the world's platinum catalytic converters are manufactured in South Africa. The diamond industry accounts for 550,000 carats of high quality gem diamonds cut locally. In Botswana, De Beers and the government of the country have agreed to the establishment of DTC Botswana, which will sort and value all Debswana's diamond production and will sell rough diamonds to the local cutting and polishing industry.

Precious metal mining companies also recognise the need to facilitate manufacturing beneficiation in the country and have intervened in this regard by sponsoring jewellery design competitions, developing special economic zones for manufacturing, providing material funding schemes and financial assistance to jewellery training schools.

I believe that we can all work together to our mutual benefit and in the interests of a thriving South African economy and society. The jewellery sector cannot exist without mines to source the raw materials and there is little point in mining unless there is a demand for the product, and jewellery forms the overwhelming basis of that demand. The image of the mining industry is therefore inextricably linked to that of the jewellery industry. Consequently, a responsible mining industry has positive repercussions not only for communities and the environment but is also an enabler of a sustainable jewellery sector.

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