Between high oil prices and the sub-prime mortgage crisis, the economic situation here in the U.S. has gone from bad to worse over the past few years. Let’s face it, we are still largely an oil-based economy and these higher oil prices have a trickle down effect as they increase the cost of goods (higher costs of manufacturing and delivery). That, in turn, has forced many consumers to tighten their spending belts.

With the holidays just weeks away, traditional gifts like jewelry are likely to take a hit. To remain competitive in this tough economic climate, companies are leveraging technology to help them stay competitive. When Rhodes Scholar Gareth Penny took over as managing director of De Beers (the worlds largest and most well-known diamond producer) he was the genius architect behind some of De Beers’ most radical -yet effective - changes in their business paradigm. Some of those changes included “demand driven initiatives” and “technological innovation” to help cut costs and increase diamond production and supply.

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De Beers, African Diamonds, and Wati Ventures, the shareholders of Boteti, are in the final stage of discussions with the Botswana government concerning the development of the AK06 project, the mining giant said in a statement.

The discussions mainly focused on mitigating the impact of the regional power shortage which poses a challenge to the timely development of the AK06 project.

“The talks have been constructive and have aimed to find a way to provide the project with a secure and cost effective power supply, while avoiding undue delay,” De Beers said. “De Beers is confident that the successful conclusion of these discussions will result in AK06 joining Botswana’s world-class stable of diamond mines in 2011.”

De Beers also said it had reached an agreement in principle with the government to sell diamonds mined at AK06 through Diamond Trading Company Botswana (DTCB), an equally owned joint venture between De Beers and the government that would support its beneficiation objectives. Current Debswana production is also marketed through DTCB.

“Government has acknowledged the gravity of the power supply issue and is investigating solutions to address the challenge and ensure the project has a sustainable supply of power,” Gareth Penny, De Beers Group managing director said in the statement. “As Botswana’s largest private investor, De Beers is excited to further our commitment to Botswana’s diamond future with the development of the multi-billion Pula AK06 project.”

De Beers holds a 71 percent stake in AK06 while African Diamonds holds 28.38 percent of the mine’s shares.

A conflict transpired between De Beers and African Diamonds in July concerning AK06 when De Beers noted that potential power issues made the mine less viable and suggested it be delayed by two years. The two were also at odds concerning the marketing of diamonds from the mine.

Negotiations for the AK06 mining license are expected to be concluded in the coming week.

Source: www.idexonline.com

New York, USA - September 15, 2008:  The International Diamond Manufacturers Association (IDMA), the representative body of the world’s diamond manufacturers, is to hold an IDMA Presidents’ Meeting in Gaborone, Botswana, November 10-12, 2008, at the invitation of the Botswana Diamond Manufacturing Association (BDMA). The announcement was made by IDMA President Moti Ganz.

The invitation, extended by BDMA president Mervin Lipschitz on behalf of his organization and the Botswana Diamond Trading Company, will enable IDMA, members to see developments in the world’s newest and fastest growing diamond manufacturing center.

At the meeting, IDMA members are expected to discuss difficulties arising on the supply side, as well as specific prolems that the change of supply has caused in the some of the diamond industry’s cutting centers. In addition, the diamond industry leaders will address the financial challenges, in particular the issue of credit in the diamond business.

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