According to Ram SahgalRam Sahgal of the Economic Times writing at http://economictimes.indiatimes.com, many in the closely-knit diamond trade are surprised at the failure of Rosy Blue, the world's largest polished diamond maker, to qualify for rough diamond supplies from De Beers out of Botswana and listed company Asian Star being dropped from its sightholder list for the three-year contract period commencing in March 2012.
While Rosy Blue will continue to get roughs from Diamond Trading Company, De Beers' distribution arm in London, and remains a large sightholder, a presence in Botswana, the world's largest polished diamond producer with a 30% share, would have boosted its ability to secure more diamonds, the author says. Asian Star will have to turn to other suppliers like Rio Tinto, BHP Billiton, Alrosa and De Beers' own Diamdel, which auction diamonds.
Diamond traders said the developments would not affect diamond availability as those excluded from the sightholder list would be replaced by others. De Beers will release its sightholder directory in March next year.
"We are happy that we continue to be a large DTC sightholder," was all that Russell Mehta, MD, Rosy Blue India, said on being queried about the company's exclusion from DTC's Botswana sight. Asian Star's MD admitted his company's exclusion had "surprised" the markets but that rough sourcing would continue uninterrupted from other miners.
"It will be business as usual," Shah told this newspaper. However, two top diamond traders, one of them a sightholder, termed the exclusion of Rosy Blue from Botswana and Asian Star's exclusion from the list altogether "surprising."
They added, "Both these companies are top class and to our minds would probably fulfill all the criteria set down by De Beers. However, the reasons won't be known."
"We will not be commenting on the status of any applicants until March 2012," was DTC's response to ET's emailed query on Rosy Blue and Asian Star.
DTC, the distribution arm of De Beers, is the world's largest rough diamond supplier. Once in three years, the company draws up a contract under which it supplies roughs to only those companies that qualify as its sightholders - entities who can examine the goods at sight before buying them. Creditworthiness, manufacturing expertise, marketing strength, branding and distribution are among DTC's criteria for assessing whether a company can become its sightholder.
The company holds 10 sights during a year in London where sightholders get rough diamonds mined from Botswana, Namibia, South Africa and Canada.
