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New approach offers customers the opportunity to secure longer-term supply at auction events
De Beers Auction Sales today launched forward contract sales to offer customers the opportunity to bid for future supply of the types and quantities of rough diamonds they require, when they require them. The new proposition will complement current spot auction events.
The purchase price for the required volume of rough diamonds in a forward contract will be determined by a customer’s bid relative to the spot price for the same type of goods at the De Beers Auction Sales spot auction event when the contract matures.
At today’s first forward contract auction event, registered customers of De Beers Auction Sales were able to bid for future supply up to three months in advance. It is anticipated that forward auctions with the ability to bid for future supply of rough diamonds over a 12 month period will be introduced in 2014.
Neil Ventura, Senior Vice President of De Beers Auction Sales, said: “Customers have expressed their desire to secure future supply at auctions so that they can plan their activities more effectively and commit to longer term agreements with their own customers. We see forward contracts as the ideal mechanism to deliver this and believe they will be a valuable addition to our customer offering”.
Approximately 10 per cent of De Beers’ rough diamonds are sold through its auction platform.
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ABOUT DE BEERS GROUP OF COMPANIES
De Beers is a member of the Anglo American plc group. Established in 1888, De Beers is the world’s leading diamond company with unrivalled expertise in the exploration, mining and marketing of diamonds. Together with its joint venture partners, De Beers employs more than 23,000 people (directly and as contractors) across the diamond pipeline, and is the world’s largest diamond producer by value, with mining operations in Botswana, Canada, Namibia and South Africa. As part of the company’s operating philosophy, the people of De Beers are committed to Living up to Diamonds by making a lasting contribution to the communities in which they live and work, and transforming natural resources into shared national wealth. For further information about De Beers visit www.debeersgroup.com.