Mining: De Beers softens deals.
In a rare turnaround, De Beers has made major concessions to the
Angola and Namibia governments for exploration and mining rights in the
diamond-wealthy countries. In Angola the most significant concession is
that Endiama, the state-owned diamond company, will have the majority
interest in diamond mines developed by De Beers, while in Namibia De
Beers' profit share will reportedly be reduced by 20%. De Beers
traditionally takes a controlling interest or runs its mines on a 50-50
partnership with governments, such as Debswana in Botswana and Namdeb in
Namibia. De Beers has also accepted that it will not recover all the
concessions it formerly held in Angola, but will share some with such
newcomers to Angola as BHP Billiton, Trans Hex and Lev Leviev. De Beers
believes Angola is Africa's most exciting territory for the
discovery of new diamond deposits.