 Cutting diamonds is a precise, tricky and highly specialised skill |
Diamond firm De Beers should move the headquarters of its London-based sales division to Africa, South Africa's mining minister said on Monday. Phumzile Mlambo-Ngcuka said the shift would help develop the region's economy and infrastructure, according to comments reported by Reuters.
She added that South Africa will use legislation and export duties to ensure more diamonds are processed locally.
De Beers produces about 60% of the world's diamonds.
All change?
The company has been contacted about the possible move of its London-based Diamond Trading Company (DTC), Ms Mlambo-Ngcuka was quoted as saying.
De Beers was not immediately available for comment.
"Fifty percent of the diamonds that are produced and consumed by the world are coming from southern Africa," Ms Mlambo-Ngcuka explained.
"We think we are just as competent in southern Africa to provide the services that are provided in London," she said. "It's not just about getting DTC, it's about increased infrastructure".
The minister said that South Africa would cooperate with Angola and Namibia in order to expand the region's diamond polishing industry.
Botswana is the region's biggest producer, followed by South Africa, Namibia, Angola and Lesotho.
Ms Mlambo-Ngcuka said that South Africa's new legislation, which would require a certain percentage of diamonds to be processed locally, should be finalised by the end of 2005.
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