Botswana, De Beers Headed For New Fight

Sources familiar with the situation say De Beers' London-based Diamond Trading Company (DTC) has approached several diamond-cutting licence holders in Botswana to sign separate supply arrangements. This is contrary to the agreement that all such supplies should be handled in consultation with the government.

The friction comes as DTC is preparing to relocate the majority of its sorting and preparation of rough diamonds for sale from London to Gaborone in 2008 - a move forced upon De Beers to achieve the renewal of its mining licences for the Jwaneng and Orapa diamond mines.