De Beers and Namebia discusses renewal of contact

The Namibian government and De Beers held talks to renew their contact according to a news report by Namdeb. The 50-50 joint venture between the Namibian government and De Beers, markets most of the country�s rough diamonds, which in turn contribute 60% of the country�s foreign exchange.

Namibian government�s demand to reduce the contribution it makes to the Diamond Trading Company�s advertising budget has posed some problems. It spends11 % of the total revenue on advertising and marketing. The government plans to convert its deal with De Beers into a joint marketing venture, and to promote �beneficiation,� or domestic polishing of Namibian mined stones.

At present, two DTC sightholders and four diamond manufacturers that are not De Beers customers cut diamonds in Namibia. The talks between De Beers and the Namibians will be carried on till the end of the month before any concrete decisions are reached.