STEVEN SWINDELLS, Johannesburg | Thursday 8.45pm
DE BEERS said on Thursday that it expects to resume diamond exports that have been blocked because of a pricing dispute with a government appointed valuator shortly.
“We’re still not exporting. The dispute has not been settled yet but we hope to start exports again very soon … as soon as possible,” said De Beers spokeswoman Tracey Peterson.
De Beers, the world’s biggest diamond exporter which controls 70% of the trade in uncut diamonds through its London-based trading arm the Central Selling Organisation (CSO), has not exported diamonds since March.
Analysts said De Beers was due to export a consignment of diamonds to London on Friday, which will be the second shipment held up by a pricing dispute between the firm and the Government Diamond Valuator (GDV).
De Beers has been meeting its global sales obligations through stocks held in London or through exports from Namibia and Botswana, the analysts said. Local sight, or auction sales, in SA have been postponed as De Beers held back high value diamonds for local cutters and polishers.
The new GDV, which was appointed on March 5, has locked horns with De Beers over the “fair market value” of unpolished diamond exports which the CSO has traditionally set through its own pricing mechanisms rather than using spot market prices.
The GDV insists that the CSO price list should only be used as a “barometer” and that other valuations – whether from spot markets such as Antwerp or from local bidders- – should be used.
Both the GDV and De Beers were found to be at fault on Wednesday by the country’s Minerals Minister Penuell Maduna, who urged the GDV and De Beers to solve their dispute and warned a mediator will be appointed to forge an agreement. Maduna also promised a review of the country’s Diamond Act and insisted that unpolished diamond exports are liable to a 15% export duty.