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De Beers to shift diamond sights from Botswana

The global diamond giant, De Beers is working with Botswanas government to temporarily move their sights to places closer to international diamond centres.

The company said the move is necessary in order to try and restart trading which was put on halt due to coronavirus travel restrictions imposed by the government of Botswana.

Moving sights closer to international diamond centres will accommodate diamond buyers from traditional centres, such as Antwerp and Mumbai, who have been unable to travel to Botswana.

De Beers which is one of the oldest diamond businesses in the world, hosts 10 sales in a year known as Sights. During the sales period, customers are able to inspect the rough diamonds offered to them before deciding what to buy. There are two types of customers in Global Sight-holder Sales which are Sight holders and Accredited Buyers.

Sight holders benefit from a term contract covering the sale of diamonds over an agreed period, whereas Accredited Buyers have a more ad hoc arrangement.

Already, the diamond company felt the pinch of the novel coronavirus scourge as they registered rough diamond sales of US$351 million during its second auction held in February, down from US$551 million during the first auction the previous month.

February sales were about 29 percent lower than the US$496 million recorded during the same period in 2019. If we can move our product closer to them it would give us the flexibility to restart sales as soon as the markets reopen, De Beers Executive Vice President, Diamond Trading, Paul Rowley told media on Thursday.

Rowley said the company will move some goods to locations closer to international diamond centres only for viewings with sales still invoiced in Botswana.

The temporary measure will enable us and our government partners to generate some revenue in this difficult period. The two-month coronavirus lockdown in Belgium halted business in Antwerp, which is the world’s largest diamond trade centre. Antwerp reopened at the start of this month, he shared.

Movement restrictions and weaker demand forced De Beers to cancel its diamond sales in April and May after the February sale declined by 36 percent to $551 million.

De Beers, which gets 70 percent of its production from Botswana, is curbing output. The company management has revised downwards its 2020 production guidance by 7 million carats to between 25 and 27 million carats in order to reflect demand and support long-term value as well as refocusing and repurposing marketing plans to reflect changing situation timing, targeting, product types and messaging.

However, the economy has been severely impacted by the outbreak with the budget deficit expected to more than double as reduced diamond sales and exports impact revenues. Thus far Botswana has a low number of coronavirus infections with 40 cases recorded while 23 people have recovered and one death.

De Beers is 85 percent owned by Anglo American and 15 percent owned by the Government of the Republic of Botswana. De Beers two primary mines in Botswana; Jwaneng and Orapa represent 92% of the nations diamond output by value, with Jwaneng Mine being the most valuable diamond mine in the world.

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China’s GDP expands 3% in 2022 despite various pressures

2nd February 2023
China’s Gross Domestic Product (GDP) expanded by 3% year-on-year to 121.02 trillion yuan ($17.93 trillion) in 2022 despite being mired in various growth pressures, according to data from the National Bureau Statistics.

The annual growth rate beat a median economist forecast of 2.8% as polled by Reuters. The country’s fourth-quarter GDP growth of 2.9% also surpassed expectations for a 1.8% increase.

In 2022, the Chinese economy encountered more difficulties and challenges than was expected amid a complex domestic and international situation. However, NBS said economic growth stabilized after various measures were taken to shore up growth.

Industrial output rose 3.6% in 2022 over the previous year, while retail sales slightly shrank by 0.2% data show that fixed-asset investment increased 5.1% over 2021, with a 9.1% hike in manufacturing investment but a 10% fall in property investment.

China created 12.06 million new jobs in urban regions throughout the year, surpassing its annual target of 11 million, and officials have stressed the importance of continuing an employment-first policy in 2023.

Meanwhile, China tourism market is a step closer to robust recovery. Tourism operators are in high spirits because the market saw a good chance of a robust recovery during the Spring Festival holiday amid relaxed COVID-19 travel policies.

On January 27, the last day of the seven-day break, the Ministry of Culture and Tourism published an encouraging performance report of the tourism market. It said that domestic destinations and attractions received 308 million visits, up 23.1% year-on-year. The number is roughly 88.6% of that in 2019, they year before the pandemic hit.

According to the report, tourism-related revenue generated during the seven-day period was about 375.8 billion yuan ($55.41 billion), a year-on-year rise of 30%. The revenue was about 73% of that in 2019, the Ministry said.

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Jewellery manufacturing plant to create over 100 jobs

30th January 2023

The state of the art jewellery manufacturing plant that has been set up by international diamond and cutting company, KGK Diamonds Botswana will create over 100 jobs, of which 89 percent will be localized.

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Investors inject capital into Tsodilo Resources Company

25th January 2023

Local diamond and metal exploration company Tsodilo Resources Limited has negotiated a non-brokered private placement of 2,200, 914 units of the company at a price per unit of 0.20 US Dollars, which will provide gross proceeds to the company in the amount of C$440, 188. 20.

According to a statement from the group, proceeds from the private placement will be used for the betterment of the Xaudum iron formation project in Botswana and general corporate purposes.

The statement says every unit of the company will consist of a common share in the capital of the company and one Common Share purchase warrant of the company.

Each warrant will enable a holder to make a single purchase for the period of 24 months at an amount of $0.20. As per regularity requirements, the group indicates that the common shares and warrants will be subject to a four month plus a day hold period from date of closure.

Tsodilo is exempt from the formal valuation and minority shareholder approval requirements. This is for the reason that the fair market value of the private placement, insofar as it involves the director, is not more than 25% of the company’s market capitalization.

Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond and metal deposits at its Bosoto Limited and Gcwihaba Resources projects in Botswana.  The company has a 100% stake in Bosoto which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana.

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