Gemdax, the Antwerp-based diamond marketing and strategy consultancy boutique, is pursuing a venture aimed at widening the scope of the diamond beneficiation program in Botswana, and will put in place key structures for the country's diamond exchange plan.



According to the Sunday Standard, the mid-tier Antwerp diamond elite outfit has been engaged by Botswana's government, which is trying to use its dominant production to link up with the diamond pipeline, to ensure that the country enjoys the full benefits of the resource even beyond the mining period.



Since its establishment in 2000, Gemdax has done consultancy for a wide range of clients, in the diamond and mining industries.



“We have engaged a Belgian company to assist us with the work of establishing the diamond exchange,” Botswana's Ministry of Minerals, Energy and Water Resources Secretary Gabaake Gabaake said,



The government, he added, “Would like to come up with the best possible way of doing it," without repeating the mistakes made by other African countries.



The model for the future Botswana diamond exchange will take after the Antwerp exchange in Belgium and the Israeli Diamond Exchange, in Ramat Gan.



The Botswana diamond exchange's trade volumes are expected to start at around $500 million per annum but the tricky thing is that Botswana has to avail her produce to the market. “You cannot go around telling people that you are going to start trade while you do not avail your produce to them. As such, we still have to go through a process of negotiation with our partners (De Beers),” Director for Mineral Affairs, Nchidze Mmolawa, said.



Diamond giant De Beers and Botswana government’s current sales agreement expires at the end of 2010. Botswana's government is expected to come up with a suggestion where a certain percentage of Debswana production will go to the open market.