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The De Beers Group of Companies today commenced the 2015 – 2018 Global Sightholder Sales (GSS) contracts. The updated qualification process aims to increase third party confidence in GSS customers’ corporate transparency and financial robustness.
The new contract period has been designed to achieve this aim by:
- requiring customers to provide group accounts in line with International Financial Reporting Standards (IFRS) consolidation standards
- requiring customers to achieve unqualified audit sign-off from a GSS-approved auditor on their financial data
- requiring customers’ businesses to maintain a maximum debt to equity ratio
There will be two types of GSS customer in the 2015 – 2018 contract period: Sightholders and Accredited Buyers. Sightholders qualify for term contract supply (provided via the ‘Intention to Offer’ or ‘ITO’ planning process), which indicates the nature and value of rough diamonds De Beers anticipates being able to offer Sightholders across the forthcoming 12 month selling period. Accredited Buyers have the opportunity to purchase rough diamonds on a more ad hoc basis via ‘ex-plan’ availability, which Sightholders can also purchase. The 2015-2016 selling period will commence with 84 Sightholders and two Accredited Buyers.
De Beers remains committed to delivering sustainable beneficiation in the countries of its diamond producing partners. Over the course of the contract period De Beers will therefore continue to support domestic beneficiation sectors in these countries by selling economically cuttable rough diamonds in-country. Adding further value to diamonds in-country through this approach helps drive job creation, skills development and economic diversification.
Philippe Mellier, CEO of De Beers Group, said: “The diamond industry is approaching a period of great opportunity and businesses need to be strategically well-positioned if they are to make the most of it. The approach to the new GSS contracts will support customers in this area by helping to identify them as bankable and resilient businesses. We believe that this can deliver real advantages in an increasingly competitive landscape.”
Paul Rowley, Executive Vice President of Global Sightholder Sales, said: “We are delighted to start the new GSS 2015 – 2018 supply agreement. We feel we already have a compelling product and service offering, but when this is combined with the flexibility and simplicity of the distribution approach in the new supply agreement – in which customers have the potential to increase their share of our availability by demonstrating their demand for the different types of rough we sell – Sightholders and Accredited Buyers will be even better positioned for success in the short, medium and long term.”
The updated GSS customer list will be published for the first Sight of the 2015 – 2018 supply agreement (which will take place from 4th May – 8th May 2015).
Diamond businesses that do not qualify as customers in the first annual ITO selling period of the 2015 – 2018 GSS supply agreement will have the opportunity to qualify as an Accredited Buyer at any point over the contract period, once they have met the compliance requirements. There will also continue to be an annual opportunity for applicants to qualify as Sightholders if they meet the compliance requirements and demonstrate sufficient demand for De Beers’ primary source rough diamonds over the prior reference period.
Contact
David Johnson
+44 20 7430 3434 (Press Office)
[email protected]
About The De Beers Group of Companies
De Beers is a member of the Anglo American 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 20,000 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.