Agreement signed to sell Namibian diamonds through De Beers

After many months of negotiations an agreement was signed on Tuesday January 30, 2007, by the Government of the Republic of Namibia and De Beers, for the sale of Namibia�s diamonds through the DTC until 2013. As part of the agreement the two sides will establish a joint venture � Namibia Diamond Trading Company (NDTC) � that will be responsible for the valuing, sorting, selling and marketing of these diamonds.

In an effort to encourage the local diamond polishing industry, the agreement also calls for the sale of a significant part of NDTC�s rough diamonds to local cutting and polishing factories. This means that by 2009 the local polishing industry will receive an annual supply of $300 million of rough diamonds.

The diamond industry is an important part of the Namibian economy, accounting for 40% of the country�s export revenue. Diamonds account for 10% of GDP and 7% of government revenue. Namibia exports $700 million worth of diamonds per year, and the industry employs over 40,000 people.

Namibia�s Minister of Mines and Energy Erkki Nghimtina said, �With the signing of this agreement today we have further deepened our partnership with De Beers to ensure that diamonds contribute even further to the economic success of Namibia.�

Nicky Oppenheimer, Chairman of De Beers, said �Today�s agreement is further testimony to the strength of our 13 year partnership, and a demonstration of De Beers� commitment to working together with the Government to ensure that the country�s most valuable natural resource has been turned into sustainable wealth that touches the lives of all Namibians.�

Discussions about renewing the agreement between the two sides began in November 2005. De Beers and the Government of Namibia together own Namdeb, and after long negotiations the two parties reached an agreement about the terms of the new contract for sale of diamonds produced by the company. In May 2006 De Beers announced together with the Government of Botswana the establishment of a joint venture to market diamonds produced in Botswana.