In July 2007, the Namibian arm of Diamond Trading Company announced competitive selection among the country’s diamond cutting factories to be included into the first list of NDTC sightholders. At that time, Hard Stone Processing (Pty) Ltd (HSP) was already working in Namibia as an independent manufacturer and its factory successfully occupied a strong position among the leading sightholders turning into one of the three top diamond cutting companies in Namibia. Its CEO Burhan Seber gave this interview to Rough&Polished.
Botswana diamond miner, Debswana recently said that the temporary dip in diamond prices will likely see the company producing just below its target of 25 million carats for 2011. However, Esther Kanaimba-Senai, the Group’s Manager for Corporate and Public Affairs, told Rough&Polished in an interview that Debswana was not in trouble.
Malca-Amit is a full service courier company with a 21 year record of providing the highest quality personalised service and the most efficient logistic solutions for diamonds, jewelry, gold, coins, bank notes, and valuable documents. Our correspondent in Brussels caught up with Nigel Paxman, CEO of the Malca-Amit Group of Companies, to find out more about this company.The Diamond Trading Company (DTC) July sight had an estimated value of $450 million, according to feedback received by Rapaport News. Interviews with sightholders indicated that prices remained stable and that no additional goods in the form of ex-plan were supplied by the De Beers subsidiary.
Sightholders were encouraged by the sight as they had expected prices to soften after the declines seen at the BHP Billiton tender earlier in the month.
“Marketwise I was very happy with the way De Beers handled this sight and it seems to have injected a bit of confidence back in the market,” said one sightholder. “If DTC prices had dropped it would have set in motion a slide in rough so this kept prices up.”
He added that there was a feeling before the sight that premiums would also drop but they remained stable. Another rough diamond professional noted there has been a slight softening of premiums so that many DTC boxes are now trading at about 2 percent to 3 percent, while some still fetch a premium of about 8 percent.
DTC spokesperson Louise Prior agreed that sightholders this time appeared more confident and noted that there was a strong application for goods. “There seems to be a genuine demand for manufacturing and there is an air of confidence that the market is moving in the right direction and on the measured approach that De Beers has taken regarding price,” Prior said.
Still, others indicated that the market remains uncertain before the end of year rush. While some said they expect the August sight to be larger, when sightholders have allocated purchases in their intentions to offer (ITO) for the Christmas season, others said that according to the DTC delivery plan, they expect sights valued at around $450 million for the remainder of the year.
One sightholder questioned the De Beers production schedule as the mining company has taken a cautious approach to increasing output from the slump in 2009. The company reported on Friday that production in the first half rose 134 percent year on year to 15.432 million carats. However, output was still 36 percent below the same period in 2008.
“DTC is supplying less and that is keeping demand and prices up,” the sightholder claimed. He added that there is a need for more rough to cool an element of speculation on the market. Others noted a higher interest in manufacturing among sightholders at the July sight than in previous months.
“Now people are looking at the highest possible value they can get out of the stones,” another market source said.
De Beers earlier reported that DTC sales rose 84 percent to $2.6 billion in the first half of 2010. Sales were down 20 percent compared with the same period in 2008.
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