18 Jan 2024

The September 1 deadline is getting close and the G7 is on the heels of the diamond-producing nations to abide by its proposal to have all rough diamonds shipped to Belgium Antwerp with the aim of sniffing and closing out Russia diamonds.

A delegation from the G7 is currently in the country at the invitation of Botswana government, to engage each other, through a process which included appreciating the machinery used in mining, processing and selling of diamonds.

Led by Mr Brad Brooks-Rubin, the delegation among others toured Jwaneng Mine, the world leading producer of diamonds by value and other players in the diamond industry such as Lucara head office and the Diamond Trading Company Botswana.

The high level delegation is made up of representatives from the United States of America, Japan, Canada, France, Germany, Italy and the United Kingdom.

The proposed changes to the diamond trading industry follow the sanctions imposed on Russia in response to the Russia-Ukraine war which included the banning Russia diamonds’ access into the G7 market.

Briefing the media Wednesday on the visit by the G7 delegation, Permanent Secretary to the President and also chairperson of Debswana, Ms Emma Peloetletse said the G7 technical experts’ team was in the country to appreciate processes engaged by the country in the diamond industry from the initial stage of mining to the point of sale.

Botswana, which is not buying into the proposed changes of a new trade route by the G7, thereby ditching the current route which over years was compliant to the security measures, has invited the delegation to appreciate the tried and trusted security measures in the mining and trading of diamonds.

Ms Peloetletse said the consultation was part of the processes employed by the G7 to sniff out and curtail prospects of Russia diamonds finding their way into the G7 market.

She said putting a stop on the sale of Russia diamonds to G7 was discussed since last year and a new system had been proposed, therefore all concerned parties in the diamond industry including mining nations such as Botswana were expected to comply to the order by September 1.

As such, Ms Peloetletse said Botswana, as a diamond producer, a commodity that was the primary driver of the development as well as growth of its economy had seen it fit to invite the G7 delegation to appreciate what the country was doing, the country’s position and the likelihood of how the proposed diamond audit route would impact on the country’s revenue generation and economy.

“We want to understand how the new order will affect our laid down processes which included the security involved in the mining, processing and selling of diamonds,” she said. Ms Peloetletse said the proposed order would see Botswana diamonds and all those from other diamonds company divert from their norm of going through the Kimberly Process, therefore taking the new route of Belgium, where they would be authenticated by Antwerp to ensure that they were not of Russian origin. She said process would be applied to rough and polished diamonds as well as their products.

She said the surprise development came at a time when the country had positioned itself to fully exploit the diamonds value chain. She said diamond beneficiation story started some years back with the relocation of the Diamond Trading Company from London to Botswana, followed by the assumption of the Kimbelry Process Secretariat as well as recently striking a better deal with De Beers.

In the recent past, she said the country sent a team of experts to Brussels to meet with the G7 to share the Botswana diamond story as well as invite them to the country to appreciate the protocols of the diamond mining process.

Briefing the media on their visit, Mr Brooks-Rubin said the G7 made a statement in December 2023 on the move to impose sanctions of Russia diamonds. He said though engaged to implement the G7 decision, which would see diamonds taking the Belgium route in order to gain access to the G7 market, the team was in the country to consult affected stakeholders.

He said the team had through visits to Jwaneng mine and other companies in the diamond sector appreciated true investment made in the industry. He said the team would take all it learnt into consideration when  readying the G7 system to be up and running by September. “We believe that Botswana will play an important role finalising what has been agreed by the G7 leaders,” he said.

Mr Brooks-Rubin said the cornerstone of consulting with diamond mining countries was driven by the view to make informed decisions and avoid dire outcomes. “We are following what has been proposed by the G7 countries. We have been asked to develop what will work for all,” he said.

“Our wish is to develop a positive system for the diamonds to continue benefiting Botswana. We want to develop a system with mutual benefits as well as ensure that they are free of Russia diamonds,” he said.

Minister of Mineral Resources and Energy, Mr Lefoko Moagi said 90 per cent of the country’s revenue was generated from mineral income, with diamonds taking the lead. “Diamonds are Botswana and Botswana is diamonds,” he said.

Mr Moagi expressed hope that consultation by the G7 team of experts would bear the desired fruits for Botswana. ends