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Namibian government and De Beers make breakthrough on gems deal
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The Namibian government and diamond giant De Beers are set to sign a new sales agreement, it was announced recently. And, as a result of what mining minister, Erkki Nghimtina, described as successful negotiations, the Namibian diamond-cutting industry will be the beneficiaries of a better deal.
They will now be able to buy Namibian rough diamonds from inside the country, Nghimtina told the National Assembly. Talks on the partnership contract renewal started a year ago, back in November 2005.
The Namibian Government entered into a joint venture with De Beers in 1994, and the Namibian Diamond Corporation (Namdeb) was formed with both partners having a 50 percent stake in the company. The contracted sales agreement must be renegotiated every five years, with the last one signed in 2000.
Stephen Lussier, the Executive Director of External and Corporate Affairs for the De Beers Group, said in an interview that the contract would set the trend for the next 10 to 15 years and it was therefore imperative that both parties made sure that it was solid. The agreement allows for 10 per cent of any diamond production to be sold separately to test the market.
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