Suashish Diamonds to enter Africa for mining

Sushish Diamonds, a Mumbai-based firm, has plans to enter into diamond mining in mineral-rich African countries, especially in Botswana, to ensure supply of rough and semi processed diamond.

Botswana had recently liberalised its mining policy to attract foreign investment into mineral processing industry. It has also signed a memorandum of understanding with world leader in mining, Debeers, and its marketing arm Diamond Trading Corporation (DTC) to invite investment in the areas of diamond processing in the country for employment generation.

Resulting, De Beers, according to Laddha, invited Suashish Diamonds to set up a processing unit in Botswana, which would open the window for the Mumbai-based company to enter into mining sector there. Under the new mining policy, the government of Botswana does not permit miners to export plain roughs to any destination while semi processed roughs are allowed to ship abroad.

Hence, according to Sanjay Kothari, chairman, Gems & Jewellery Exports promotion Council (GJEPC), a number of diamond processor have already set up cutting and processing units in that country.

This is significant as mineral-rich countries, including Botswana, Angola, South Africa and Namibia, have almost restricted entry of rough diamond miners and exporters without processing in a country.

Therefore, large, small and mid-size diamond, processor from India are likely to start procurement of rough diamonds from these countries directly.

In a bid to ensure supply of semi-processed in anticipated absence of roughs, Suashish Diamonds has already invested around $12 million (Rs 48 crore) to process 40-carat diamond per annum. The company is planning to invest another $63 million (Rs 275 crore) by the end of third year, i.3. 2010-11.

An initial investment of $12 million is expected to add $20 million to the company's overall sales.