Says a spokesman for De Beers, which wants to enter India
On the ongoing controversy that politicians were paid kickbacks, the spokesman said: "De Beers' 1994 proposals were made in good faith and in response to a call for tenders published by the government of Madhya Pradesh to encourage foreign participation in the state's economic development." And if they come to India, it would be a long-term investment. "To find and open a new mine may take many years and De Beers would see its involvement as being of a long-term nature," the spokesman said.
De Beers manages 18 mines in four countries in Africa and is known to operate more kinds of diamond mines than any other company. Not only does it mine underground kimberlite pipe mines, it operates huge beache terrace, paleleo river bed and sea floor operations from Orangemund on the coast of Namibia. Its role as a diamond trader arises from its shareholding in the companies involved in buying and selling diamonds around the world, collectively known as the Central Selling Organisation (CSO), based in London. Through the CSO, De Beers controls 75 per cent of the world trade in uncut diamonds, which it then supplies to world cutters and polishers, many of whom are based in India.
However, the real threat to it now comes from the Australian firm CRA, which along with British company RTZ and Australian company Broken Hill Proprietory, has questioned the De Beers monopoly by starting mining in Canada. CRA's big catch has been the Argyle mine in Australia where it now controls about 60 per cent ownership rights.
They have a prize catch in Madhya Pradesh too in the personage of Biplob Chatterjee, its project manager (geology). Chatterjee, who was working with the Geological Survey of India (GSI) in the Raipur region before being picked up by CRA, is quite familiar with the local terrain and its preliminary findings. Not unnaturally, he welcomes the introduction of foreign technology for diamond mining in the country. "Technically," he says, "the CRA is far ahead and unless modern methods are used, it would be impossible to make the mines commercially viable."
But then companies like De Beers or CRA are unlikely to get fazed by the political sabre-rattling here. De Beers, for instance, is lobbying hard to get a foothold in Angola where the fighting between rebel and government troops has made trading difficult.