SA Minister Sonjica Criticizes Oppenheimer’s Comments

As reported by iol.co.za, Sonjica criticized Oppenheimer’s comments and affirmed that beneficiation – boosting the local polishing industry – would be enforced in South Africa. “One moment, De Beers commits to beneficiation in this country, next moment they are sending this message. Beneficiation is going to be law in this country.”

In a presentation last week, Oppenheimer stressed that beneficiation in South Africa would have to be subsidized because of polishing costs, which he said are $70-$100 per carat, as opposed to India, where costs range between $6 and $8 per carat.

Oppenheimer is Nicky Oppenheimer’s son, whose family owns 40 percent of De Beers.

Jonathan Oppenheimer said that, “Unless the government is determined to subsidize that difference, the net benefit of selling those diamonds locally has to be measured against the net loss… De Beers would support the government’s efforts, but would also work with them to show them the economic consequences of their decisions.”

According to De Beers, Oppenheimer’s comments were misunderstood by the media. A De Beers spokesperson said that Oppenheimer continues to express full support for beneficiation in southern Africa, and this is confirmed by De Beers’ support for the establishment of the State Diamond Trader in South Africa.