27 Jun 2013

The relocation of diamond site holders from London to Gaborone is proceeding smoothly, says Minister of Minerals, Energy and Water Resources, Mr Mokaila.

He said this when South Sudan president, Gen. Salva Kiir Mayardit and his delegation toured the Laurenton Diamond Company and Diamond Trading Company Botswana (DTCB) on June 26.

Mr Mokaila said the country housed 21 diamond holding sites from London, an increase from the initial 16. He said he had just returned from London where he engaged other diamond site holders and assured them of successful operations in Botswana.

Despite the 2008 decline in the diamond sale due to the world economic down turn, Mr Mokaila said he was happy with the market recovery. “There is a slight positive inclination; we have ridden the storm and are slowly picking up,” Mr Mokaila said.

DTCB managing director, Mr Tabake Kobedi informed his guests that the world market was recovering as over US$600 million worth of diamonds were sold in 2012 and better sales were expected. Regarding what they sold to site holders, Mr Kobedi said they started with low volumes of just under US$300 million going down to US$200 million in 2009.

DTCB used to operate with about 33-34 million carats per year until the global financial crisis in 2008 when volumes dropped to 20-22 million carats per year. Mr Kobedi, however, said it was possible to get back to 33 million carats per year, even though it made more economic sense for the country to mine at the current levels.

Mr Kobedi highlighted that the relocation of De Beers Mining Company activities such as trading and sale from London to Botswana was a major milestone as all activities will be undertaken in the country at the end of the year.

“The opportunities are quite immense and it is very important for Batswana, especially business people to be mindful of these activities and take advantage of them.” Mr Kobedi told the South Sudan delegation that in the event they discovered diamonds, Botswana would be ready to play an active role in prospecting, sorting and valuing of the gems. ENDS