Wed 14 Nov 2007, found at africa.reuters.com

JOHANNESBURG (Reuters) - Botswana's diamond trading firm expects to sell $360 million worth of rough diamonds to local gem cutters in 2008, as the world's biggest diamond producer by value pushes to forge a local polishing industry.

The value of sales of raw or rough diamonds to local cutters could jump to $550 million in 2009, Diamond Trading Company (DTC) Botswana, said in a statement on Wednesday.

DTC is a 50/50 joint venture between the government of Botswana and De Beers, the world's biggest producer of the gem.

DTC Botswana said it had agreed to supply diamonds to 16 local diamond cutting firms on a three-year contract.

DTC Botswana will be responsible for the sorting and valuing of all diamonds produced from Debswana, a joint venture owned 50-50 by De Beers and the government, and selling some of the diamonds to the locally-based cutters.

De Beers, 45 percent owned by mining group Anglo American Plc, tightly controls distribution of its diamonds to specially-selected clients.

But Botswana, like neighbours South Africa and Namibia, wants to move from exporting the raw gems into the lucrative processing industry and boost employment. Some 3,000-plus jobs would be created in the cutting industry, DTC Botswana said.

Local diamond polishing could boost the economy of Botswana, where mining contributes around one third of gross domestic product and supplies half of government revenues.