Anglo American's Diamond Unit Signs 10-Year Sales Pact with Namibia

By Alex MacDonald

LONDON--Anglo American PLC's (AAL.LN) diamond unit, De Beers Group, said Monday it has signed a 10-year agreement with the government of Namibia for the sorting, valuing and sales of diamonds from their equally owned Namdeb Holdings joint venture.

The sales agreement is the longest ever signed between the two partners and will result in $430 million of rough diamonds being offered annually to customers in Namibia via their equally owned Namibia Diamond Trading Company.

In addition, the agreement provides for 15% of Namdeb annual output to be made available to a government-owned independent sales company called Namib Desert Diamonds Pty Ltd.

As part of the agreement, all Namdeb's special stones--ones that are very large or unusual--will also be made available for sale in Namibia.

"This new agreement cements Namibia's position as an important international diamond player and will provide further stimulus to advance our downstream industry," said Obeth Kandjoze, Namibia's minister of mines and energy.

"This sales agreement--the longest ever between Namibia and De Beers--not only secures long-term supply for De Beers, but also ensures that Namibia's diamonds will continue to play a key role in national socio-economic development long into the future," said Philippe Mellier, chief executive of De Beers Group.

-Write to Alex MacDonald at [e-mail]

(END) Dow Jones Newswires

May 16, 2016 12:32 ET (16:32 GMT)

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