16th May 2016 16:05
LONDON (Alliance News) - Anglo American PLC on Monday took note as The De Beers Group of Companies said it signed a 10-year sales agreement with the Namibian government for the sorting, valuing and sales of Namdeb Holdings' diamonds.
Namibia will see a significant increase in rough diamonds made available for beneficiation as a result of the agreement, with USD430 million of rough diamonds being offered annually to Namibia Diamond Trading Company customers, De Beers said in a statement. Anglo has an 85% stake in De Beers.
The agreement provides for 15% of Namdeb Holdings' run-of-mine production per annum to be made available to a government-owned independent sales company called Namib Desert Diamonds Pty Ltd.
"This sales agreement - the longest ever between Namibia and De Beers - not only secures long-term supply for De Beers, but also ensures that Namibia's diamonds will continue to play a key role in national socio-economic development long into the future," Philippe Mellier, chief executive officer, De Beers Group, said in a statement.
Obeth Kandjoze, Namibia's Minister of Mines and Energy, said the agreement cements the country's position as an important international diamond player.
"De Beers and Namibia have a longstanding and successful partnership and I am pleased we will continue working together for the benefit of Namibia and the diamond industry," Kandjoze said.
Shares in Anglo closed up 5.4% at 609.58 pence on Monday.
By Samuel Agini; [email protected]; @samuelagini
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