This article covers an interview with Bogolo Kenewendo, Botswana’s Minister of Minerals, discussing the implications of the recent De Beers contract, strategies for the diamond market, and her views on lab-grown diamonds amidst rising consumer awareness and sustainability concerns.
Bogolo Joy Kenewendo, Botswana’s Minister of Minerals and Energy, provided insights during her attendance at the Jewelers Vigilance Committee’s annual luncheon in New York on March 14. Appointed in November, Minister Kenewendo discussed the recent contract signed with De Beers and its implications for Botswana’s diamond market, alongside her perspectives on lab-grown diamonds and strategies for reviving the natural diamond industry.
Reflecting on the U.S. market, Minister Kenewendo noted that while industry awareness of Botswana is strong, consumer knowledge remains limited. During her market research, she found notable confusion among jewelry sales personnel regarding diamond origins. However, the luncheon brought forth positive discussions regarding the new De Beers agreement, which is expected to foster better consumer education and collaborative marketing efforts.
The recent contract mandates an increase in diamond sales by the Okavango Diamond Company (ODC) from 25% to 30% immediately, aiming for 50% by the tenth year. Strategies for selling diamonds will also evolve, with potential shifts towards direct sales and a re-examination of auction methods to maintain market integrity.
Minister Kenewendo emphasized the importance of a unique Botswana hallmark that signifies ethical sourcing, akin to Canada’s Canadamark. This hallmark, possibly named after local wildlife like the elephant or zebra, aims to promote responsible mining practices while marketing the nation’s diamonds.
A joint marketing fund established under the new contract seeks to elevate the entire natural diamond market by highlighting Botswana’s contributions and ethical practices. This strategic approach aims to leverage Botswana’s strengths as a case study in development linked to diamond mining.
On the topic of HB Antwerp, Minister Kenewendo confirmed the absence of contracts or ongoing negotiations regarding a potential stake acquisition by Botswana. Additionally, she addressed concerns about the efficiency of Botswana’s diamond-cutting factories, asserting that while some are pausing operations, many remain optimistic for a market rebound, continuing to strive for operational efficiency.
Regarding lab-grown diamonds, she initially perceived them as a threat to natural diamonds. However, she noted a recent resurgence in interest toward natural diamonds in regions like the Middle East and India. The positive sales growth of natural diamonds in the U.S. reflects a potential stabilization in this sector.
Minister Kenewendo discussed the deceptive narrative that lab-grown diamonds are more environmentally friendly, highlighting Botswana’s significant land conservation efforts. She also underscored the societal importance of diamonds in supporting democracy and economic stability in Botswana, contrasting the corporate governance of synthetic diamonds.
With Anglo American’s intention to divest from De Beers, Kenya expressed Botswana’s interest in potentially increasing its stake, currently at 15%, depending on shared values and the stability of the partnership. Minister Kenewendo acknowledged the recent $2.9 billion write-down of De Beers as unsurprising given ongoing market struggles.
To address diamond traceability, which has been a key challenge in promoting Botswana diamonds, government efforts will focus on enhancing the narrative surrounding the country’s diamonds and showcasing their quality through direct engagement with potential stakeholders and consumers.
In summarizing her commitment, Minister Kenewendo reiterated the profound impact of the diamond industry on Botswana’s future, reinforcing a dedication to both investment and stability within the sector. She concluded by urging a revitalization of consumer interest in natural diamonds, emphasizing their enduring value.
Minister Bogolo Kenewendo’s dialogue at the Jewelers Vigilance Committee’s luncheon provided crucial insights into Botswana’s diamond industry. With the recent agreement with De Beers, Botswana aspires to enhance its diamond market through increased sales, unique marketing strategies, and educational outreach. Her perspective on lab-grown diamonds reveals a shift towards optimism for natural options amidst growing market stabilization. By focusing on traceability and ethical sourcing, Botswana aims to reclaim its narrative in the global diamond market, ensuring lasting value for generations to come.
Original Source: www.jckonline.com
