Diamond giant De Beers recently announced that its sightholders are free to participate in open tenders organized by rival diamond producers, clearing the path for the 16 local cutting and polishing firms. The matter had been a point of contention between De Beers and its sightholders for a while.



According to Mmegi Online, following the decision, Firestone Diamonds is expected to approach the market with a parcel of diamonds from its BK 11 Mine, while African Diamonds has also sealed a mining license empowering it to market its diamonds in the open market.



In entering production, Firestone Diamonds' BK 11 becames the second operational diamond mine outside the Debswana/Diamond Trading Company Botswana (DTCB) production and retail chain.



Firestone and African Diamonds' mining licenses, and their push for independent marketing provisions, mark the first time produce from Botswana will be sold outside the De Beers system.



In 2008, DiamonEx's Lerala Mine became the first diamond mine to operate outside Debswana, however, it suspended operations early last year, citing cash flow issues.



Meanwhile, DTCB officials said the 16 cutting and polishing firms, who hold exclusive rights to Debswana's production, were free to participate in tenders outside the De Beers supply chain.



DTCB, like Debswana, is a 50/50 venture between De Beers and the government of Botswana.



"The contracts that DTC and DTCB have with sightholders do not prohibit them from acquiring rough or polished diamonds from any other source," said DTCB Corporate Communications And Public Affairs Manager, Kago Mmopi.

"The only condition is that the diamonds acquired from other sources must carry a Kimberley Process Certificate, as is the case with diamonds supplied by DTC and DTCB."