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De Beers kicks off “diamonds from DTC” provenance claim

Publishing Date : 08 April, 2019

Author : TSAONE SEGAETSHO

This week De Beers announced that diamonds which will be purchased from the current Sight of 2019 which is the third and runs from April 1 to 5, and onwards, where customers can refer to stones purchased from the giant mining company as “diamonds from DTC” across the value chain down to the end-consumer level.


According to De Beers, Sightholders and Accredited Buyers will be able to use the “diamonds from DTC” provenance claim across the value chain down to the consumer level, and will be able to provide assurance on its validity through certifying the claim under the Responsible Jewellery Council standards, or through an independent third-party audit. The “diamonds from DTC” provenance claim will add glitter to the ever sparkling Botswana’s diamond-led development story. Diamonds from Botswana contribute to 27 percent or US$ 4.4 billion of the GDP.


In Botswana De Beers has four companies in diamond business; De Beers Holdings, Debswana, Diamond Trading Company Botswana and De Beers Global Sightholder Sales. De Beers Holdings is the exploration arm and is currently focused on early stage exploration programmes in Tsabong, Orapa, Palapye and Kang. Debswana, a 50/50 joint venture between De Beers and the Government, is the primary producer of diamonds in Botswana.


The Diamond Trading Company Botswana, also a 50/50 joint venture between De Beers and the Government, sorts and values the rough diamonds mined by Debswana. De Beers Global Sightholder Sales is responsible for selling the bulk of De Beers’ global production to its rough diamond customers, known as Sightholders. In 2013, De Beers moved this international sales operation from London to Gaborone, resulting in growth in the volume of diamonds traded in Botswana to about US$6 billion, leading to a boost to employment, as well as downstream and other support services.


“We are proud of where our diamonds are discovered, how we recover them responsibly and the role our activities play in building thriving communities. By enabling our customers to share the source of origin of our diamonds, we hope to drive further transparency throughout the diamond value chain,” said De Beers Group CEO Bruce Cleaver this week.


According to De Beers, the “diamonds from DTC” provenance claim will offer greater significance than many other industry provenance claims, as it not only states corporate provenance, but is also supported by the provision of sustainability performance and transparency information on each of the mines of origin


Diamonds from DTC Botswana journey

Exploration of diamonds is done entirely by De Beers. Mining or production is done at Debswana, a 50/50 joint venture between De Beers and the Government, which owns mines: Jwaneng, Letlhakane, Orapa and Damtshaa. Thirteen percent of Debswana production is made available by Okavango Diamond Company, a rough diamond distribution entity which is 100 percent owned by Botswana government. Most of the Botswana diamonds are transferred to De Beers Global Sightholders Sales.


De Beers Global Sightholders Sales sells around 90 per cent of De Beers’ rough diamonds by value, via term contracts to customers known as Sightholders, at events called Sights. Rough diamonds from these mines will then be sorted and valued by the Diamond Trading Company Botswana (DTC Botswana) another 50/50 Joint Venture partnership between the Government of the Republic of Botswana and De Beers.After being valued and sorted by DTC Botswana, rough diamonds will then be sold to Sightholders or Accredited Buyers-these are a select group of clients which are certified by De Beers to be demonstrating high financial integrity and sufficient demand for rough diamonds.


In Botswana there are 20 Sightholders who have established cutting and polishing diamonds in Gaborone. De Beers sell rough diamonds through ‘Sights’ to these Sightholders or Accredited Buyers. Rough diamonds can also be sold via online auction sales. Sights which comes after every five weeks and last up for a week, the coming one slated for April 1 to 5(third one of this year), are held 10 times a year in Botswana (and Namibia and South Africa), where customers will inspect their rough diamond allocations before deciding whether to purchase them. Diamonds will then be cut and polished by diamentaires before being sold to jewelers and other retailers around the world.

Skepticism dresses the 3rd Sight 


Towards the current Sight which ran this week, diamond experts around the world expected rough diamond prices to drop to drop 1 percent to 2 percent in the first half of 2019. These analysts also expected the prices to recover then end 2019 flat. London based analyst Kieron Hodgson told diamond publisher Rapaport that prices rose to 2 percent last year due to a strong first half, but the market slowed in the second half. According to Hodgson, production rose over the last two years and this led to supply outweighing demand especially in smaller categories.


According to Rapaport Weekly Market Comment, sentiment weakens after soft first quarter and dealers are avoiding large inventory purchases, and manufacturers on the other hand are reducing supply. The publication says miners are bracing for tough year as first-quarter sales decline an estimated 30 percent “Rough market under pressure, with some analysts optimistically predicting flat rough prices in 2019. Sightholders hoping profit margins will improve after next week’s sight,” says the comment.

Jewelers International Showcase


As a biggest diamond producing country backed by De Beers which is a big player in the industry, Botswana diamonds end products are expected to be among ones to be exhibited at the Jewelers International Showcase(JIS)-the second largest jewelry show in the Wstern Hemisphere. The JIS is slated for April 16-18 at the Miami Beach Convention Centre in the state of Florida, USA.

The Surat trade mission

Many diamantaries are expected to converge at the Indian city of Surat where they will be provided with an unprecedented opportunity for members of the diamond and jewelry trade to meet and interact with the diamond cutters, dealers and market makers in the world’s largest diamond cutting center. Surat is home to an estimated 500,000 diamond cutters, who manufacture over 90 percent of the world’s polished diamonds. The trip to Surat will be on April 8 to 11.

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