Oppenheimer Warns Against Heavy-Handed Beneficiation Legislation
February 08, 05De Beers' Chairman Nicky Oppenheimer has warned the South African government not to be heavy-handed in imposing legislation on mining companies in its attempts to promote beneficiation for fear it could lead to “disengagement” between the government and miners.
Speaking to African mining ministers, Oppenheimer said partnerships between governments and the private sector were not always easy but they needed to be open, transparent and reasonable.
"In
Oppenheimer said southern African countries should insist miners operate in a way that brings the maximum benefits to their peoples but hinted they should be realistic in their demands.
As an example, he said that although South Africa had established a viable cutting and polishing industry, it could not polish all the country's diamond production since it costs $40-$50 to polish a carat of rough diamonds while in India the equivalent work costs $10-$12.
“This means that only larger, better quality diamonds can be polished in
He said the industry needed to "transform itself to fit into the new
De Beers was also looking to see what could be done to create "forever" benefits to other African producer countries and pointed to
Meanwhile, in a reference to Namdeb, Oppenheimer said De Beers' partnership with