- Cycle 8 took place amid industry rebalancing
- De Beers to give full flexibility in Sights 9 and 10 allocations
GAZETTE REPORTER
Rough diamond sales from De Beers’ eighth sales cycle of 2023 reached a substantial $200 million, Anglo American has announced.
According to the parent company of De Beers, this provisional figure – covering the period from September 18 to October 3 – underscores the dynamic nature of the diamond industry and hints at significant shifts in the market.
Shedding light on the company’s strategic approach, the CEO of De Beers, Al Cook, emphasised the adjustment of rough diamond availability to facilitate the midstream’s efforts to rebalance areas of stock accumulation.
Supply and demand equilibrium
Cook stated that De Beers is committed to assisting its valued sightholders in re-establishing equilibrium between wholesale supply and demand.
To achieve this goal, De Beers will be taking several measures in the coming months.
Firstly, the company will provide full flexibility for rough diamond allocations in Sights 9 and 10 of 2023, offering crucial support to its sightholders.
Furthermore, it will suspend De Beers Group’s online rough diamond auctions for the remainder of 2023.
Natural diamond marketing
Finally, the company plans to invest an additional $20 million in natural diamond marketing, aiming to stimulate consumer demand during the upcoming holiday season.
De Beers, a multifaceted multinational corporation engaged in various aspects of the diamond industry, employs two primary avenues for the sale of its rough diamonds: Global Sightholder Sales and Auctions.
The former accounts for approximately 90 percent of the De Beers Group’s rough diamond sales by value. It involves the allocation of term contracts to distinguished clients known as Sightholders, who evaluate their assigned rough diamond allocations during events referred to as sights.
10 times annually
These events, held across Botswana, Namibia and South Africa, play a pivotal role in shaping the industry’s trajectory.
The rough diamonds available at these sights are sourced from De Beers’ owned and joint venture operations, as well as mines adhering to the Responsible Jewellery Council Code of Practices and the Best Practice Principles.
De Beers Group’s global presence extends across 35 countries, with the lion’s share of its earnings, approximately 75 percent, originating from its activities in Botswana.
20,000 strong workforce
Anglo American holds an 85 percent stake in De Beers, making it the primary owner, while the Government of Botswana retains the remaining 15 percent.
The expansive De Beers workforce comprises over 20,000 individuals spread across 28 countries, including those where the company conducts diamond recovery operations – Botswana, Canada, South Africa and Namibia.