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Nam Diamonds Aplenty, But Few to Polish

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  • Nam Diamonds Aplenty, But Few to Polish

    AllAfrica.com, Africa
    March 24 2005

    Nam Diamonds Aplenty, But Few to Polish

    New Era (Windhoek)
    March 24, 2005
    Posted to the web March 24, 2005

    Catherine Sasman
    Windhoek

    Israeli-based LLD Diamonds Namibia appointed its first Namibian
    managing director, Kombadayedu Kapwanga, on 21 March, and he will
    take over the reins of the local company from Yaaqov Adir.

    The company, which is currently the biggest diamond cutting and
    polishing factory in Africa, complained that it at times finds it
    difficult to buy Namibian diamonds for value addition. It is
    currently the only cutting and polishing plant that adds value to
    Namibian diamonds, which it buys from the Samicor marine diamonds
    ploughed from along the coastline. Namdeb's cutting and polishing
    factories get their diamonds from the London open market.


    The company, which is currently challenging Namdeb's monopoly in
    diamond mining and cutting and polishing, is a subsidiary company of
    the Leviev Group/Samicor.

    While the Leviev Group holds 70% shareholding in Samicor, government
    holds 10%, 10% by various black economic empowerment groups, and 4%
    by Samicor employees. The Leviev Group, however, wholly owns LLD
    Diamonds, putting in N$100 million investment into the company over a
    period of 10 months.

    The LLD factory started its operations in June last year with 250
    trainees. It currently has 430 trainees, whose training programme
    will come to an end shortly. The company thus anticipates starting
    with production soon thereafter. It has its markets in Japan, the USA
    and Europe, with seven marketing agents globally. The factory was
    designed to employ up to 550 people. The Leviev Group has deployed 67
    Armenian trainers to oversee this training.

    "The localisation of managing the company will mean that management
    will know more about the local employment and environmental
    conditions," said Kapwanga from his office yesterday.

    Kapwanga said that the factory has resulted in a spin-off effect in
    the SADC region, where countries like Botswana, South Africa and
    Angola are considering opening their own cutting and polishing
    plants. Currently, there are already 27 Angolans trainers and 40
    trainees being trained at the Wind-hoek factory.

    The LLD Diamonds Namibia company has been given a diamond cutting
    licence as per the Diamond Act, and Samicor given a number of
    prospecting and mining licences. Equally, Namdeb has an exclusive
    prospecting and mining rights, as well as a cutting licence under
    Namgem.

    "It is time that we do value addition to our diamond products instead
    of exporting our raw materials," said Kapwanga, adding that where the
    company falls short in supplies of Namibian diamonds for its factory,
    it is forced to buy diamonds from the Leviev Group factories in
    Russia or from the Katoma diamond mine in Angola.

    "Why do we have to settle importing from Russia and Angola while
    Namibian diamonds, the best in the world, are exported to the UK?"
    questioned Kapwanga.

    The Ministry of Mines and Energy, in response, pointed out that the
    government has "an agenda", whose roots are growing and stabilising,
    to maximise revenue from diamonds, in addition to value addition and
    manufacturing. "In fact, government policy and a pro-active
    legislation were the catalysts for the creation of Samicor and the
    coming to Namibia of LLD Diamonds," the ministry pointed out. This,
    the ministry stated, is "unheard of in some of our neighbouring
    countries that produce many more carats, been independent for many
    more years and are now trying to emulate Namibia".

    The ministry stated that the Namdeb licenses are protected as per
    agreements between its shareholders - the government and De Beers.
    More, the Namibian laws protect the licenses, as well.


    "In the near future, the government shall enter into negotiations
    with its partners on a myriad of issues. It would therefore be unfair
    and prejudicial to government, at this critical juncture, to be
    coerced to prematurely tip its hand and disclose issues that would be
    thrashed out at the negotiating table," the ministry responded when
    asked what plans the government has in mind to maximise value
    addition in the country, and how much the country is losing out for
    exporting its rough diamonds to the Central Selling Organisation.

    "The government has plans that it is busy fine-tuning. These plans
    would be finalised once the new government sits comfortably in its
    place, and once the new Minister Erkki Nghimtima is fully briefed and
    has sufficiently acquainted himself with the issues and the industry.
    When the time comes the industry and the nation will be informed of
    results and developments."

    From: Emil Lazarian | Ararat NewsPress
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