CAR Invites De Beers, Alrosa to Mine Its Diamonds

RAPAPORT... The Central African Republic (CAR) is trying to entice large diamond-mining companies to set up operations in thecountry, as part of its effort to reform the sector and meetKimberley Process (KP) regulations. The government has already contacted both De Beers andAlrosa, President Faustin-Archange Touadera said in a speech to the Antwerp trade Monday. Allowing established companies that already meet Organisation forEconomic Co-operation and Development (OECD) guidelines to mine in thecountry will enable the government to monitor the sector to prevent smuggling,Peter Meeus, an adviser on the diamond industry to the CAR government, told RapaportNews Tuesday. Under the reformed rules, miners would have to export a minimum of about $3 million worth of diamonds per quarter.CAR will also overhaul its tax legislation to bring the diamond industry morein line with neighboring countries, granting operators a rate of 4% on exports,as opposed to its current 12%, as long as they meet the minimum export figure. In comparison,the Democratic Republic of Congo offers a tax rate of 5.75%, according to Meeus. Currently, the KP allows CAR to export diamonds fromrestricted areas that are in compliance with its regulations. Those "greenzones" represent a small portion of the country. In February, the governmentsigned a peace agreement with rebel forces that it hopes will eliminateviolence, Touadera added, although the agreement has yet to be extended todiamond reform, Meeus noted. De Beers said it wasn't interested in pursuing mining opportunities in CAR."I can confirm we're focused on our current portfolio, and have no plans to undertake any activities in the Central African Republic," David Johnson, head of strategic communications for De Beers, confirmed to Rapaport News Tuesday. Image: President Faustin-Archange Touadera. (Shutterstock)