Diamond Producing in South Africa Essay Example | Topics and Well Written Essays - 1000 words

Diamond Producing in South Africa - Essay Example The UK-based company owns stakes in leading global producers of gold (42%, AngloGold Ashanti), platinum (75%, Anglo Platinum), and diamonds (45%, De Beers Consolidated). In addition, Anglo American has interests in paper and packaging goods (more than 20% of sales), ferrous and base metals, and industrial minerals. It also is one of the world's largest independent coal miners. The company controls assets around the world. Descendants of the founding Oppenheimer family no longer control Anglo American, although Nicky Oppenheimer, who chairs De Beers, sits on the company's board. How western democracies have supplied arms, created a state of lawlessness, and taken advantage of the escalating confusion to swindle away more mines. When tension is high massive looting is coordinated at extremely mediocre rates. Increased 'beneficiation' or downstream value added by the diamond industry has become an important issue for the South African government in recent years Though diamonds are beneficial there are also shortcomings of the trade. The United States is heavily dependent upon South Africa for key minerals including chrome, manganese, vanadium and platinum. Though two decades old, the following /New York Times/ report highlights not only U.S. dependence on South African strategic minerals, but its vulnerability to any future Russian-South African blockade. Written at the time of sanctions against South Africa in the apartheid era, the 5. Regulatory issues A new Diamond Act became effective in 2000. The Act provides for the establishment of a Diamond Board and spells out its objectives, powers, duties and functions. The Act also provides for control measures in respect of the possession, purchase and sale, as well as the processing and the import and export of diamonds. 6. Security issues The trade in illicit and conflict diamonds in South Africa is a complex issue. There is emerging evidence, however, that there is an extensive illicit trade in domestic rough diamonds, and in conflict diamonds. This same type of trade has led into wars in diamond producing countries