De Beers has just sold largest amount of rough diamonds in a year

South Africa's mineral resources minister Susan Shabangu is on a road show in Australia and the UK to quell fears of mine seizures and drum up new investment for the country. So far few are suspending their disbelief over nationalization.

BusinessDay reports De Beers has no intention of reducing its interests in South Africa and will up planned investment in its new Venetia underground mine by more than $600 million to $1.9 billion. The Venetia expansion comes after the company this week signed a new $2 billion multi-currency credit facility and the sale of its disused SA mines. De Beers Consolidated Mines delisted from the Johannesburg Stock Exchange in May of 2001 after more than a hundred years on the South Africa bourse when the Oppenheimer family took the firm private.

Gem Diamonds' Letšeng mine continued to polish its reputation as the world's richest source of large diamonds, the London-listed company reported in a management statement covering July to October. 15 diamonds were found that were sold for more than $1 million and 50 roughs fetched prices greater than $20,000/ct;  one fancy pink went for $156,000 /ct.  Letšeng also recovered 171 diamonds greater than 10.8 ct in size. Excluding the 550ct Letšeng Star sold for $16.5 million last month, the mine averages sales of $2,425/ct. No wonder then that the board will meet this month on a feasibility study expanding capacity 75%.

As controversy continues to rage over mining in Zimbabwe's Marange alluvial diamond fields, Voice of America reports a deal has been reached to sell Marange diamonds. According to the World Diamond Council, the agreement allows two Marange operations to sell diamonds on the international market and a third, run by a Chinese miner, will be allowed to resume sales following third-party verification. The agreement, reached in Kinshasa, Congo, was ratified by members of the Kimberley Process, which is a system to prevent the sale of so-called "blood diamonds". The United States opposed the decision by abstaining from the vote.

A presentation made to the Zimbabwean parliament on Thursday details the secrecy, corruption and human rights abuses that accompany mining activities in the Marange alluvial diamond fields. Hundreds were killed and thousands of local miners were driven off claims when the army seized control of the area in 2008 and most observers believe an international ban on these gems are being widely flouted. The report alleges that in contrast to the official $200 million, as much as $2.8 billion – equal to all other tax revenues – found its way into a parallel government via the army, police, prisons and intelligence agencies which all have 'permits' to mine there.

Mining Weekly reports De Beers is going all out to create 5,000 non-mining jobs in Namaqualand over the next five years as it exits a region on the South African west coast where it has mined for the past 90 years. Projects include a wind farm, abalone culturing for export to China where it is a highly prized delicacy, a prison warden training facility and a joint venture with sister company Anglogold for undersea gold mining. The company has recently come under fire over plans to sell the properties including two towns to a much smaller outfit that will have to take responsibility for rehabilitation over a 970 square km area pockmarked by open pits.

London-listed Gem Diamonds announced Tuesday it has sold the world’s 14th largest white diamond discovered at its Letšeng Mine in Lesotho two months ago for $16.5 million in cash. Gem will also share in the profit of any polished diamond cut from the 550 carat Letšeng Star. Letšeng is fast-becoming the richest source of large diamonds in the world and without the occasional large diamond find, the Letšeng pipe would probably be a marginal deposit, but the mine, 30% owned by the King of Lesotho, has also yielded the the 478 carat Light of Letšeng that went for $18.4 million in 2008 and two other big rocks.

A small South African community 300km north of Cape Town is taking on De Beers over the diamond giant's plans to sell its 970 square km Namaqualand properties to a much smaller outfit already operating in the area. Locals say Trans Hex, which will assume responsibility for rehabilitation, has a poor track record in the area, lacks financial clout and the environmental management programme put together by De Beers already falls far short of what is needed to clean up almost a century of opencast mining in the biodiversity hotspot. In a video (after the jump) community spokesperson David Markus says a diamond may be forever for De Beers, but for his people, "it’s the suffering that’s forever."

BusinessWeek reports Alrosa says it mined more diamonds than global rival De Beers in 2009, 2010 and the first half of 2011 and is benefiting from prices for rough diamonds of $109 – up 30% over last year. Alrosa accounts for more than a quarter of world output and for 2011 predicts $5 billion in revenue. The secretive firm has been feeding the market more information recently in anticipation of a 2012 public offering, but now says its good financial performance may reduce the size.