India to Sign MoU to Secure Independent Rough Supply

India and Namibia are on the verge of signing a memorandum of understanding (MoU) that will give India access to Namibia’s diamond riches. Such an agreement will give India direct access to diamonds, decreasing its dependency on major producers.

The agreement has been approved by the Indian government and will be signed during Namibian Prime Minister Nahas Angula’s visit to India next week. It calls for Indian investment in Namibian mining and for cooperation between the two countries in this sector.

At this point, it is not clear how much the deal would reduce the prices of rough diamonds for Indian diamantaires. Estimates run from as little as 3 percent to 7 percent.

Diamond India Limited (DIL), a consortium of 60 Indian diamond exporters, has promoted the agreement. DIL was formed in 2006 to purchase rough diamonds directly from producing countries, mainly Russia, Canada, Angola and Ghana.

DIL succeeded in purchasing rough diamonds from Russian diamond miner Alrosa.

In May 2005, DIL held a sale of diamonds and colored gemstones.