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http://www.diamonds.net/news/NewsItem.aspx?ArticleID=18229

By Avi Krawitz Posted: 07/02/07 07:25 [Submit Comment]

RAPAPORT... De Beers is redirecting its exploration activities to the Democratic Republic of the Congo (DRC) and Angola and dramatically scaling-down its India operations as a result.

De Beers spokesperson Lynette Gould told Rapaport News the move comes as part of the De Beers's focus on delivering the financial and business objectives of De Beers.

“To achieve this, most of our key exploration staff in the India operation are being moved into [the DRC and Angola] operations," she said.

Gould was responding to reports in India's press that South Africa-based mining operations had retrenched 70 of its 80 staff at its Bangalore diamond testing center, and that six of the remaining 10 were being relocated to South Africa “to gain further international experience.”

She said the numbers quoted were “speculative and wrong” and explained that De Beers would keep a small team of geologists in Bangalore plus a small support staff to maintain existing projects. Of the remainder, several key staff would be relocated as soon as possible, mostly within Africa, she added.

De Beers is involved in early stage work on existing projects and is looking to complete reconnaissance sampling on any new ground which may be granted the company by the Ministry of Mines. The company still has outstanding applications to carry out exploration at various sites in India.

Gould noted, however, that a complete closure would take place when this work is completed.

The move comes amidst a general restructure of the De Beers business to focus on profitability, which has seen it put a number of its assets on the selling block, including its famous Cullinan mine and underground Kimberley mines in South Africa.

As part of the restructure, De Beers decided to make India its main center of rough diamond supply to secondary, or non-sightholder, diamond manufacturers through Diamdel.

Gould stressed that downsizing the company’s exploration activities in India would not impact its marketing activities in the country.


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