Bogolo Joy Kenewendo, Botswana’s Minister of Minerals, discusses the recent agreement with De Beers aimed at increasing diamond sales for the Okavango Diamond Company. She emphasizes the need for consumer education about Botswana diamonds, the introduction of a hallmark for ethical sourcing, and collaborative marketing efforts. Additionally, she addresses the challenges posed by lab-grown diamonds and expresses optimism for the natural diamond market’s recovery.
Bogolo Joy Kenewendo, Botswana’s Minister of Minerals and Energy, recently addressed the Jewelers Vigilance Committee’s annual luncheon in New York. Since her appointment in November, she has focused on revitalizing Botswana’s diamond market, particularly following the recent agreement with De Beers that is set to increase the sales allocation for the Okavango Diamond Company from 25% to 50% over a decade.
During the luncheon, Kenewendo expressed the need for enhanced consumer education regarding the origins of diamonds. She remarked that many U.S. consumers have limited awareness of Botswana’s diamond sourcing. However, there is a positive sentiment in the industry following the recent agreement, which can facilitate the development of strategies for partnership and marketing.
The new contract stipulates that the Okavango Diamond Company’s share will increase to 30% after the signing and, subsequently, 40% in five years. Over ten years, the aim is for a 50/50 sales division with De Beers. Moreover, the company aims to explore alternative sales strategies in addition to auctions, which have at times disrupted market conditions.
Kenewendo has proposed the introduction of a hallmark for Botswana diamonds, similar to Canada’s Canadamark, aiming to signal ethical sourcing and responsible mining practices. She emphasized that this hallmark initiative would encompass diamonds marketed by both the Okavango Diamond Company and De Beers, thus enhancing consumer awareness.
Furthermore, the joint marketing fund created by the new agreement is to be governed by a steering committee that will utilize Botswana’s compelling narrative to elevate the global natural diamond market. The strategy includes promoting Botswana’s diamond-for-development story.
Regarding HB Antwerp, Kenewendo clarified that there are currently no contracts or agreements between Botswana and the company, and she does not anticipate any forthcoming negotiations. Although there has been talk of some diamond-cutting factories pausing operations, she confirmed that none have closed permanently, as some maintain hope for market recovery.
On the topic of lab-grown diamonds, Kenewendo expressed initial concern that they may adversely affect the natural diamond market. However, she noted a recent recovery, particularly in markets such as the Middle East and India. Moreover, she underscored the importance of natural diamonds, which maintain a unique value and rarity distinct from synthetic counterparts.
Kenewendo also addressed the potential sale of De Beers by Anglo American, noting that Botswana is exploring possible equity stakes to ensure its ongoing relevance in the diamond sector. However, she refrained from suggesting potential new owners, emphasizing the necessity of shared values and stability in ownership.
She attributed the prolonged negotiations for the contract to the need for securing value for Botswana while preserving the industry’s potential for future growth. Finally, Kenewendo rallied for renewed investment in the diamond sector, affirming, “Diamonds are forever. Let’s get back to investing in the product.”
In summary, Minister Bogolo Kenewendo is focusing on enhancing Botswana’s presence and reputation in the diamond market following a significant agreement with De Beers. The initiative aims to increase sales allocations for local diamond companies and foster consumer education regarding ethical sourcing. Through strategic marketing and investment in traceability, Botswana seeks to revitalize its diamond industry and counter the impact of lab-grown diamonds. Overall, a robust commitment is evident towards rebuilding and enhancing Botswana’s diamond market.
Original Source: www.jckonline.com
