De Beers making it harder for diamond dealers to join supply chain – Mining.com
March 30, 2015
De Beers is fine-tuning details of a set of new conditions for companies seeking to join its group of customers known as “sightholders.”
According to FT.com (subs. required), the diamond giant — which sells $6 billion of unpolished gems a year and is the world’s largest supplier by value — wants traders to hold a specified proportion of equity in their businesses, so they are less reliant on bank borrowing.
De Beers, which last revised its sightholder contracts in 2011, will give companies time to make changes to their accounting practices. But sightholders unwilling or unable to do so will lose their status.
The move seeks to direct gems to the most financially sound purchasers and make the business more transparent, echoing other signs that the diamond industry is starting to modernize.
Read More: http://www.mining.com/de-beers-making-harder-diamond-dealers-join-supply-chain/
