Gem regulator pays tribute to legacy of Oppenheimers

THE OPPENHEIMER family has received a glowing tribute from Steve Phiri, the chairman of the SA Diamond and Precious Metals Regulator, who described the family as having “made our country proud in the global diamond industry”.

“We wish the Oppenheimers well in their new endeavours,” he said.

Phiri, who is also Royal Bafokeng Platinum’s chief executive, said in the annual report of the regulator, tabled in Parliament, that the body had been “disturbed to hear the sad news that the Oppenheimer family is exiting the diamond industry”.

“They have been in this industry for a long time and it is unimaginable how it will move on without them,” Phiri wrote.

However, the regulator’s chairman said his board was comforted that De Beers’ long-time partner, Anglo American, had a commitment “to the company [De Beers]”. Anglo American snapped up the Oppenheimers’ interest in De Beers.

“We hope they will take De Beers to even greater heights,” Phiri added.

In April the Competition Tribunal approved the $5.1 billion (R40bn) deal by Anglo American to buy 40 percent of De Beers from the Oppenheimers, thus ending more than a century-long presence of the family – starting with Sir Ernest, then his son Harry, Harry’s son Nicky and Nicky’s son Jonathan – in the diamond industry.

Anglo now owns 85 percent of the diamond giant, with the rest held by Botswana. De Beers announced yesterday that Anglo chief Cynthia Carroll had been appointed chairwoman of the diamond producer.

The regulator’s annual report for 2012 notes that South Africa exported a total of 167 482 carats of polished diamonds valued at about R7.6bn during the financial year to March this year. The polished gem exports registered during this financial year had increased by 3.72 percent, compared with the previous financial year.

The total rand value of South African polished diamond imports was R2.55bn for the year to March. This was up by 22 percent, compared with the previous financial year. Peak sales occurred at R341 million in September 2011.

The regulator, which encompasses the government diamond valuator, reported that the imports included polished diamonds for “commission work”.

The chief executive, Levy Rapoo, provided figures for the calendar year 2011 for total imports of rough diamonds.

These were worth R4.3bn, which represented an increase from 560 023 carats in 2010 to 1.45 million carats in 2011.

This was attributed in part to Zimbabweans diamonds entering the market in terms of an agreement for clearance under the Kimberley Process.

Zimbabwe therefore in 2011 became the top-ranking supplier of rough diamonds to South Africa in terms of volume at 651 521 carats, worth R224m. It started exporting from the second quarter of the year.

The EU remained the top-ranking supplier in terms of value at R2.86bn, providing 465 323 carats. The EU was followed by Israel and the United Arab Emirates.

In terms of rough diamond exports, the sales totalled R11.6bn, or 7.8 million carats.

The largest volume went to the EU, which took in 5.9 million carats, or 68 percent of all rough diamonds exported. These were worth R8bn in total.

The annual report notes that the beneficiation of diamonds in the country is lagging.

“During the period under review, diamond [beneficiators] purchased a conservatively estimated 230 000 carats of rough diamonds (3.2 percent of South Africa’s mine production), of which an estimated 200 000 carats were subjected to cutting and polishing.”