SA Minister Wants DTC to Relocate to Africa

Phumzile Mlambo-Ngcuka, South Africa's Minister of Minerals & Energy, has called on De Beers to move its marketing arm, Diamond Trading Company (DTC) from London to Africa, because most of its diamonds are sourced from southern Africa,.

“Fifty percent of the diamonds that are produced and consumed by the world are coming from southern Africa,” the Minister was quoted by Reuters.

“We think we are just as competent in southern Africa to provide the services that are provided in London. Those people who are importers of diamonds must come and buy their diamonds here and spend their money here,” she added. “It's not just about getting DTC, it's about increased infrastructure.”

Mlambo-Ngcuka believes such a move will give the region's economy and infrastructure a boost, adding that South Africa will promote local production through legislation and export taxes.

Beneficiation is one of the hottest issues on the table today, as far as African producing countries are concerned. South Africa is expected to pass legislation by the end of the year that will require empowerment partnerships, new taxes on mining and requirements for local polishing.

In a speech yesterday (Monday), De Beers' Chairman Nicky Oppenheimer warned against “heavy-handed” beneficiation legislation, fearing it could lead to “disengagement” between the government and miners.