De Beers Alters Rough Diamond Allocation Model for Sightholder Sales

The De Beers Group of Companies announced that it has updated its rough diamond allocation model for sightholder sales for the March 2015 to March 2018 period.

As quoted in the market news:

Around 90 percent of De Beers rough diamond availability by value is sold through sightholder sales. The updated allocations model will involve a new method for determining sightholder sales 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 non-sightholder diamond businesses will have opportunities to purchase rough diamonds from sightholder sales.

Philippe Mellier, CEO of De Beers Group, commented:

The sightholder system has been at the heart of our selling model for decades and it will continue to be central to our 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 we sell to purchase them on a term contract basis as sightholders, while also offering more opportunities for non-sightholder diamond businesses to demonstrate their demand for De Beers rough diamonds. The more rigorous financial and existing ethical compliance requirements will also help to reinforce third party confidence in the strength and transparency of global sightholder sales’ customer-base.

Click here to read the full report from the De Beers Group of Companies.