Photo by: Bloomberg
JOHANNESBURG (miningweekly.com) – Multinational diamond giant De Beers Group has announced an updated model for the allocation of rough diamonds by its primary rough-diamond distribution arm, Global Sightholder Sales (GSS), in respect of the March 2015 to March 2018 contractual period.
The group said in a statement on Tuesday that the updated allocations model would involve a new method for determining GSS’s rough diamond customer base, with a simplified, compliance and demand-based customer qualification process being introduced.
It will also adopt a more flexible sales approach, through which nonsightholder diamond businesses would have opportunities to buy rough diamonds from GSS.
Registrations of interest to apply for GSS rough diamond supply during the new contractual period would be open from August 25 to 29.
De Beers Group CEO Philippe Mellier said the sightholder system had been at the heart of the company’s selling model for decades and would continue to be central to its approach in the new contract period.
“However, the changes we are introducing will provide greater flexibility in purchasing opportunities at De Beers. They will enable those expressing strong demand for the rough diamonds to buy them on a term-contract basis as sightholders, while also offering more opportunities [enabling] nonsightholder diamond businesses to demonstrate their demand.
“The more rigorous financial and existing ethical compliance requirements will also help to reinforce third-party confidence in the strength and transparency of GSS’s customer base,” he explained.
Around 90% of De Beers’ total rough diamond availability by value is sold through GSS.