Kedikilwe on diamonds

I am grateful to the Israel Diamond Institute, for inviting me, on behalf of the government of Botswana, to share our perspectives, experiences and aspirations.

Platforms like this are important to help us realize that the enemy is not within but outside the room like Gareth so aptly observed yesterday. This conference is important for two reasons. Firstly it follows at least three other similar industry gatherings, which occurred last year in India, Antwerp and China. Secondly its theme "TRIBUTE TO THE PRODUCER" clearly emphasizes the significance of the historic development of secondary diamond industries in producer countries. There is a discernable, yet understandable degree of apprehension on the part of older diamond centers, institutions, associations and manufacturers regarding the changes occurring in the producer countries as it was also amply demonstrated from the comments made yesterday in the opening sessions. It is only prudent and wise to therefore address the perceptions or misperceptions that may exist surrounding the aspirations of producer countries concerning local beneficiation. We as the government of Botswana have taken a considered decision to cautiously migrate downstream and shed the image of being exclusively and predominantly a producer country as we have characterised ourselves in the past within the industry. (Yesterday in some of the presentations, we realized that this is true of a number of industry players who felt the need to spread out across the diamond pipeline).

We believe this is an important step to take towards the maturation and strengthening of the mineral sector and the diversification of the structure of our economy. This is in line with one of our mineral policy objectives for National Development Plan 9 which states that we will seek to create linkages between mining and other sectors of the economy through local value addition. Reports that we are receiving from those factories that have started production confirm that local beneficiation can and will work in that, the labour force is highly trainable and is able to produce fantastic results in a very short space of time; and the application of relevant technologies helps to mitigate the natural disadvantage of high labour and other production costs we have compared to other centres. Most of the current sightholders are zealous and creative in the way that they are carrying out their businesses and thus helping them make an impact very quickly. Furthermore, of the range of goods that our mines produce, and those that will go through DTC Botswana, only a small portion can and will be profitably polished in Botswana hence our target for only half a billion US dollars worth of goods to be supplied to local factories by 2009.

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