De Beers denies hidden agenda

De Beers is defending itself against allegations of monopolistic behaviour toward a black empowerment group.

The major’s relationship with New Diamond Corp. (NDC) came into question after the Johannesburg-based Mail & Guardian published details of a confidential agreement that would effectively give De Beers first rights to NDC’s future activities.

News of the agreement comes as South Africa prepares to promote new laws that will strip companies of rights to deposits they do not plan to mine, and transfer these rights to other companies.

The confidential agreement was signed in 1999, when De Beers and NDC struck their first deal over a stake in the Marsfontein mine in the Northern province. The NDC has since concluded five big deals, including two with De Beers.