De Beers accused of breaking beneficiation promises

According to analysts that claim to have intimate knowledge of the ten-year 2010 agreement, the diamond manufacturers’ plight might be lessened if De Beers keeps its promise of supplying local companies with ‘suitable’ stones that are profitable to cut under Botswana’s high cost operating environment. In the better quality ranges, Botswana’s labour costs are competitive with other centres and below some of the other southern African countries.

Due to depressed polished prices set against high rough prices, cutting and polishing companies globally are currently facing difficulties with the local industry’s situation exacerbated by the comparatively higher labour costs.