Diversification

These range from vulnerability to external shocks caused by changes in the diamond market and variable consumer demand, to the complex consequences of currency over-valuation.

Diamonds are also a finite resource. This means for any one deposit, diamond earnings will eventually plateau and decline.

While it is primarily the responsibility of government to manage the revenues generated from natural resources today to build a solid foundation for a strong economic future tomorrow, the Family of Companies can make a valuable contribution to this process.

We also understand the importance of good governance wherever we operate, in order to ensure these one time revenues are fairly invested and distributed within the economy.

We can assist our partner governments in meeting their economic diversification goals through, on the one hand, ensuring that their countries derive the maximum value from their resources by optimising mine profitability, finding new deposits and driving demand.

On the other, we can assist in the groundwork for developing more diversified economies through developing beneficiation opportunities, diligent closure planning, supporting other industries by procurement agreements, strategic social investment and direct support for enterprise development.

Botswana
The wealth generated from diamond revenues in Botswana has been used for economic development including healthcare, education and transport infrastructure.

Since its independence in 1966, Botswana has made the transition from one of the world’s poorest countries to one with Africa’s highest credit rating. It has one of the world’s highest economic growth rates.

Diamond Trading Company Botswana (DTCB) seeks to support other cutting centres and protect the integrity of diamonds as a major source of income for the country and for many other people worldwide.

While the value of goods cut and polished in Botswana relative to the value of production is small, it is very significant relative to economic activity in Botswana.

Debswana’s previous sorting and valuing company, Botswana Diamond Valuing Company (BDVC), ceased operating at the end of 2007. Most of the BDVC employees are now employed by DTCB.

DTCB is being established independently from both Debswana and BDVC, so that Debswana can focus on mining, while DTCB can focus on capturing the full value of Botswana’s diamonds and further support the development of Botswana’s industry.

The sale of diamonds from DTCB, sourced from the DTC’s aggregated mix, was made available locally to clients in Botswana for the first time in 2008.

Local cutting factories are supplied as per Supplier of Choice criteria and in line with agreed beneficiation targets. Determination of eligibility for supply rests with DTCB.

Applicants for supply applied directly to DTCB for client (Sightholder) status and the successful applicants have now been awarded three year contracts from 2008. DTCB Key Account Managers helped facilitate the selection process.

The client identification criteria also ensure that those selected have the capacity and experience to build a sustainable local diamond manufacturing industry.

DTCB also intends to work together with clients on marketing initiatives to stimulate local and regional consumption of diamonds and to maintain the integrity of the gems as a magnificent and unique natural product.

It is hoped that, through the support of DTCB’s clients, a small and viable market can be developed in the country, focusing on local consumers and tourists.

Namibia
Namibia Diamond Trading Company (NDTC) is a 50/50 joint venture between the Government of the Republic of Namibia (GRN) and De Beers. Its core objective is to deliver maximum long term value from diamonds to Namibia. It does this by developing world class sorting, valuing, selling and marketing practices.

South Africa
De Beers is active in helping to establish a sustainable, integrated diamond industry and further the wider economic goals of the South African government.  Its work includes the sorting and distribution of rough diamonds.

It also facilitates the development of local cutting, polishing and jewellery manufacturing skills and the marketing of diamonds in South Africa and abroad.