African Producers Weigh Formation of Diamond Cartel

African Producers Weigh Formation of Diamond Cartel

(April 29, '07, 10:07 IDEX Online Staff Reporter)

Representatives of six African diamond producing countries met Saturday in the Angolan capital of Luanda to push ahead with plans to form a regional diamond cartel similar to OPEC, which regulates world oil prices.
Ministers and industry reps from South Africa, Angola, Namibia, the Democratic Republic of Congo, Botswana and Zimbabwe discussed using the African Diamonds Producing Countries Association (ADPA) as a cartel to increase their share of the world diamond market whose value is estimated at $13.1 billion. The six countries produce more than half of the world’s diamonds by value.
“We will establish the OPEC of diamonds," the DRC’s Deputy Mines Minister Victor Kasongo was quoted as saying previously.
"We will form united diamond policies, so that we have more power in the international arena."
The Namibian says Kasongo's views highlight speculations of frustration among African diamond producers who believe countries like India, Israel and Belgium are reaping the lion’s share of revenues as “masters of the diamond trade”.
Experts proposed a $1.3 million budget for the fledgling ADPA, and said the money should come from fees paid by the organization’s 19 member states.
The organization was first established in 2006 in Angola to promote exploration, mining, cutting and polishing, human resource development, information exchange, trade and stopping the trade in conflict diamonds.

1 comment:

Anonymous said...

Let's start with South Africa...

While Ernest Blom is moving up the corporate ladder by ill-advising SADC countries in the diamond area, De Beers and the World Diamond Council have put all their faith in Abbey Chikane to protect foreign interest even further.

In Angola, the local diamond industry is being plagued by bad decisions.

Endiama is in a unique position to lead and even control Africa's diamonds, but this will be almost impossible since they haven't accomplished anything other than changing their corporate logo. Since the declaration of ADPA, Angola has lost (not gained) a great deal of influence and support among member states.

It has now become more evident that they lack expertise at the administrative level.

It is a pity that the country that collaborates with the enemy more than any country in Africa is missing out on such an opportunity to become more independent and prosperous.

Angola's diamonds are being used to erect diamond empires in the UAE, India and (now) China.

Now we must wait to see what country it sells its soul to next.