Anglo American's Diamond Unit Signs 10-Year Sales Pact with Namibia
May 16 2016 - 11:47AM
Dow Jones News
By Alex MacDonald
LONDON--Anglo American PLC's (AAL.LN) diamond unit, De Beers
Group, said Monday it has signed a 10-year agreement with the
government of Namibia for the sorting, valuing and sales of
diamonds from their equally owned Namdeb Holdings joint
venture.
The sales agreement is the longest ever signed between the two
partners and will result in $430 million of rough diamonds being
offered annually to customers in Namibia via their equally owned
Namibia Diamond Trading Company.
In addition, the agreement provides for 15% of Namdeb annual
output to be made available to a government-owned independent sales
company called Namib Desert Diamonds Pty Ltd.
As part of the agreement, all Namdeb's special stones--ones that
are very large or unusual--will also be made available for sale in
Namibia.
"This new agreement cements Namibia's position as an important
international diamond player and will provide further stimulus to
advance our downstream industry," said Obeth Kandjoze, Namibia's
minister of mines and energy.
"This sales agreement--the longest ever between Namibia and De
Beers--not only secures long-term supply for De Beers, but also
ensures that Namibia's diamonds will continue to play a key role in
national socio-economic development long into the future," said
Philippe Mellier, chief executive of De Beers Group.
-Write to Alex MacDonald at alex.macdonald@wsj.com
(END) Dow Jones Newswires
May 16, 2016 12:32 ET (16:32 GMT)
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