De Beers discussing diamond supply to South African companies

De Beers is discussing with the South African government the possibility of supplying rough diamonds for beneficiation companies, says a report in the country's Sunday Times newspaper.

South Africa developed the concept of beneficiation in the middle of the last decade during the presidency of Thabo Mbeki wherein the country's mineral resources are developed rather than being exported in their raw form.

De Beers reiterated that it is committed to the concept of adding downstream value to South Africa's diamonds in cases where it is economically feasible.

"We strongly support local beneficiation in all our producing regions," said De Beers' strategy head Bruce Cleaver.

"In South Africa the model is a bit different, but about 40 percent of our diamonds are already cut and polished locally," Cleaver added.

"The Venetia underground mine will allow De Beers to supply the local South African market up to 2042 and we have been in engagement with government around this," Cleaver commented.

De Beers announced last week that it plans to invest around $2 billion in the construction of an underground mine at the Venetia operation.