BHP BILLITON – TAKE OVER – RIO TINTO
After unveiling a 15% increase in profits for 2008, BHP Billiton’s (BHP) CEO Marius Kloppers has announced that the takeover bid for diamond miner Rio Tinto now makes more sense than ever, Israelidiamond.co.il reported. He urged investors to be patient with regard to its $150 billion takeover bid for rival miner Rio Tinto. Analysts believe that BHP will take advantage of its profit results to sweeten the deal for Rio Tinto.
But regulators may well put restrictions on the proposed merger of the two diamond mining giants. The European competition regulator is scheduled to rule in the matter in December. The Australian Competition and Consumer Commission has requested more information from BHP prior to passing its ruling.
Some analysts believe that the European commission is likely to impose some restrictions on the deal.

STRATEGIC DEPOSITS – LIST – RUSSIA
Russia’s Natural Resources and Environment Ministry has drafted a list of strategic deposits with federal status, Tacy reported. Recent amendments to the law on subsurface resources stipulated that strategic deposits will be handed over to resource developers by government decree. The resources law also bars foreign companies from buying more than 10 percent of companies that hold licenses to strategic properties though exceptions can be made for deals approved by the government. Properties with diamonds are considered to be strategic deposits of federal status.
The list has been submitted various government departments for approval, after which it will be submitted to the government. The approval process is due to take a matter of weeks.

INDIA – IMPORTS BAN –VENEZUELA
Following Venezuela’s self-imposed suspension the Kimberley Process last June, India has banned the import of rough diamonds from the South American state, IDEX Online reported.
 “The import of rough diamonds from Venezuela shall be prohibited in view of the voluntary separation of Venezuela from the Kimberley Process Certification Scheme (KPCS),” India’s Directorate General of Foreign Trade, a unit within the Ministry of Commerce, said in a release.
A series of reports about rough diamond smuggling out of the country and a lack of government oversight led to increased pressure on Venezuela to take control of the situation or face suspension.
Diplomatic efforts by several KP members, led by the EC, resulted in Venezuela’s Ambassador to India announcing its withdrawal from the system during the Kimberley Process meeting in New Delhi June 18.
The country intends to explain the government's plan to return to the fold to a review team led by the KP Chair.

Rough&Polished