More back royalty problems for De Beers...

[mike04456]

Royalty Claims Encouraged by Richtersveld Ruling




"A political pressure group based in Namibia is claiming royalties from De Beers and Namdeb for the Nama people living in the diamond-rich area of Oranjemund in southern Namibia. The royalty claim dates back to 1918 when De Beers started mining in the area."

 

[kathishopping]

i hope those debeer's bully's have to pay back!!
its amazing to me what workers are paid to mine, and what debeers is paid for the product...who's the ones really making out here?
i think if we all could see these diamond mind workers in their daily grind, as well as seeing their paycheck...we might not be as crazy about these pieces of ice.
these countries are mine excavation rich and people poor, and who is in charge of the riches...debeers!!! i wonder if debeers gives anything back to these countries they have a stranglehold on?

 

[illusivone]

Is it true De Beers cannot legally operate in the united states, because it is a monopoly?

 

[mike04456]

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On 10/31/2003 1:24:59 PM illusivone wrote:





Is it true De Beers cannot legally operate in the united states, because it is a monopoly?
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Yes it is. The Justice Department sued them for anti-trust violations some years back, and there was a consent decree under which De Beers agreed not to conduct any business in the U.S. This hasn't stopped them from doing a certain amount of exploration and other low-key activities through partnerships and shell companies, but their core business--mining and selling rough diamonds--is all overseas.

They are trying to resolve this dispute once and for all in order to come back to the U.S., but the anti-trust attorneys I've communicated with think it's unlikely, because the Justice Department would require changes in the way they do business that De Beers would not accept. There are certain things they do (mainly the way they've historically bought rough, and the way the sightholder system works) that unequivocally violate U.S. antitrust laws. So there's not a lot of wiggle room. Then again, they've remade themselves significantly in the past few years as part of the Supplier of Choice program, so anything could happen. The U.S. is far and away the world's biggest diamond market (50%+), and they would really like to get back in here.

 

[mike04456]

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On 10/31/2003 1:22:00 PM kathishopping wrote:





these countries are mine excavation rich and people poor, and who is in charge of the riches...debeers!!! i wonder if debeers gives anything back to these countries they have a stranglehold on?
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It's not quite so one-sided as that. In Namibia and Botswana, where De Beer has its richest mines, the local mining corporations (NamDeb and Debswana) are owned 50/50 by De Beers and the respective government. So a lot of money is staying there. Botswana has a stable, democratic government and the highest standard of living in Africa, all because of its diamonds. The local diamond workers don't make a lot by first world standards, but they are definitely well-off by local standards. That said, De Beers is still making money hand over fist from their diamond deposits, and there are indigenous groups in the area (mainly the Bushmen) who have gotten the shaft over the years.

 

[dimonbob]

Yes, DeBeers makes a lot of money but you also have to remember DeBeers has a huge investment in mining operations. I spent several months in South Africa, Botswana and Namibia visiting diamond, gold, copper and other mines. The DeBeers diamond mining operations are the safest and cleanest of any of the mines I have visited. The local miners are well fed and housed. They are also well paid by local standards. People are lined up for jobs at the diamond mines.
Compare DeBeers to General Electric. GE makes plenty of money and the people that work for GE are paid the going rate in country of operation.
DeBeers is an easy target to throw mud at but they are just another business.

 

[kathishopping]

yes, i'm still curious of what the "local standard" monatarily speaking is? does anyone know?