- CEO says macro-economic challenges continue to affect the diamond sector
- Diwali holidays and factory closures in India to impact rough sales further
GAZETTE REPORTER
The world’s premier diamond company, De Beers, recently concluded its ninth sales cycle of 2023, revealing a total sales figure of $80 million.
Made by De Beers parent company Anglo American, the announcement, underscores the challenges faced by the diamond sector amidst ongoing macro-economic uncertainties.
The CEO of De Beers, Al Cook, acknowledged the hurdles, stating: “Macro-economic challenges continue to affect the diamond sector. The retail recovery in China remains slow.
Full purchase flexibility
“And the voluntary import moratorium on rough diamonds into India will see extended Diwali holidays and factory closures in the world’s largest diamond cutting centre.”
Cook highlighted the company’s response to these conditions, emphasising reduced rough diamond availability in the latest sales cycle.
De Beers maintained a steadfast commitment to its sightholders, offering full purchase flexibility to support them as the midstream seeks equilibrium between wholesale supply and demand.
De Beers-Botswana ties
The term “sightholders” refers to customers with a contractual agreement covering the sale of diamonds over an agreed-upon period, emphasising the company’s dedication to fostering lasting partnerships.
The relocation of De Beers’ Sightholder Sales team from London to Gaborone in 2013 marked a strategic move that further solidified the company’s ties with the SADC nation.
Rough diamonds, meticulously sorted into more than 10,000 categories, are sent to Gaborone from De Beers Group’s operations in Canada, Botswana, Namibia and South Africa.
Sightholders and Accredited Buyers
Global Sightholder Sales, hosting sales 10 times a year known as “sights,” allows customers to inspect the rough diamonds before making purchasing decisions.
The two types of customers in Global Sightholder Sales, Sightholders and Accredited Buyers, benefit from different arrangements. Sightholders enjoy term contracts while Accredited Buyers operate on a more ad hoc basis.
De Beers, owned 85 percent by Anglo American and 15 percent by the Government of Botswana, stands as a global powerhouse with over 20,000 employees working in 28 countries.
The company’s reach spans across the countries where it recovers diamonds – Botswana, Canada, South Africa and Namibia.