London loses in diamond switch

Hundreds of jobs in London's Hatton Garden district will be axed in a groundbreaking move that shifts power in the diamond industry back to Africa.

Diamond giant De Beers is backing the first major diamond trading company based in Botswana.

Jobs traditionally located in London's Charterhouse Street will go to Africans who will work as diamond sorters, valuers and marketers for the Diamond Trading Company of Botswana (DTCB).

De Beers, joint-venture partner in the deal, says the DTCB will be the most sophisticated operation of its kind in the world. Botswana is the world's largest producer of diamonds, yielding 34.3 million carats worth £1.3 billion in 2006, but has seen few jobs in the industry apart from mining.

The DTCB building, built and equipped by De Beers, can process 45 million carats a year. It expects to sell more than £185 million of rough diamonds to its 16 Botswana-based diamond-cutter clients this year.