Johannesburg, July 18 (Inditop.com) Diamond Trading Co (DTC) Botswana, the sales arm of global diamond major De Beers, has appointed an Indian diamond producer as its sightholder to ensure the sustainability of its diamond manufacturing capacity in the African country.
Shrenuj Botswana, which is part of the Mumbai-headquartered Shrenuj India group, will now be authorised to buy rough diamonds.
A sightholder is a company on DTC’s list of authorised bulk purchasers of rough diamonds. The De Beers group is the single largest producer and purveyor of rough diamonds in the world.
DTC corporate communications and public affairs manager Kago Mmopi said in a statement that Shrenuj would replace DDA of Botswana in order to support the sustainability of diamond manufacturing capacity in that country.
DDA has reportedly run into financial difficulties in the wake of the global economic crisis.
The global economic downturn has threatened the viability of the existing cutting and polishing factory in the Botswana capital of Gaborone. However, Shrenuj Botswana’s intervention has resulted in up to 150 jobs being rescued.
Shrenuj Botswana’s factory will now continue to manufacture diamonds and benefit the people and the country’s economy, the statement said.
Shrenuj Botswana is part of the Shrenuj India Group, which has been one of several DTC sightholders since 1982.
The new ownership will mean a change of focus for the factory, which will be working on a range of rough diamonds suitable for Shrenuj’s international downstream requirements for key global consumer markets.
De Beers had earlier indicated that diamonds could not be polished and processed economically in African countries. Countering this pessimistic view, Shrenuj processes lower value diamonds that are more suited to the African market and those in other developing countries.
“As we do with all our sightholders, we will offer every assistance to ensure the success of this manufacturing facility (and) its contribution to beneficiation and corporate responsibility in Botswana,” said DTC Botswana managing director Brian McDonald.
Shrenuj Botswana has also separately been granted an operating licence by the government.
