Aggregation involves mixing of diamonds according to value. The movement to Gaborone should have been complete by the end of the year but there has been a delay because of the world economic downturn. Rough diamond prices started plummeting in the last quarter of 2008 forcing De Beers to delay the move. With the recent improvement in trading conditions, De Beers and the government announced recently that they will refocus on finalising the details necessary to allow aggregation to commence in Botswana as soon as possible in 2010.
However, on Tuesday, the Permanent Secretary in the Ministry of Minerals, Energy and Water Resources, Gabaake Gabaake and Diamond Trading Company (DTC) International managing director Varda Shine said though moving aggregation operations is still in the pipeline, it is not one of the key activities they will concentrate on.
"Aggregation is still important but does not rank that high," Gabaake said at the Diamond Town Hall Meeting.
Shine who heads De Beers' global marketing arm, told Mmegi Business Week after the Town Hall meeting that the worst is behind them but they still have a few years to go before things get back to normal. "So all the efforts will be put on selling the diamonds," she said.
The aggregation process mixes diamonds from De Beers' global operations like Canada, Russia, Namibia and South Africa for sale to DTC's 79 clients, including 16 local cutting and polishing companies. Government priority has shifted to the realisation of its ambitious plan of making Gaborone one of the leading diamond hubs in the world by creating an independent diamond market parallel to De Beers-DTC Botswana platform.
Meanwhile, cash-strapped De Beers is trying to survive the economic downturn by cutting costs to protect its balance sheet as evidenced by the recent sale of its stake in AK 6 diamond project for slightly less than $50 million to a Canadian firm. Through Debswana, both government and De Beers have committed $500 million for the expansion of Jwaneng mine, which produces the most expensive diamonds in the world. The Damtshaa mine will remain closed until the end of 2010 as the market remains depressed.
