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May 2007

Members of the African Diamond Producers Association, a newly formed group, are now backing away from statements that they want to form an “OPEC of diamonds.”

DRC’s deputy minister of mines Victor Kasongo now says that he was misquoted by Bloomberg news service, which said he wanted a “diamond OPEC.” He now says the goal of his group is to increase diamond manufacturing and cutting throughout Africa. The governments in South Africa, Namibia and Botswana have already done this.

One South African government source told reporters: “If ADPA is working together on cutting and polishing, jewellery production and training of people, then it will work, if it is built on pricing it won’t.”

Others said the group should be focused on the Kimberley Process, which prevents diamonds from fueling wars.

The diamond association will be officially constituted at the end of the month.

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