Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
The De Beers Group of Companies recently announced five new Sightholders for the remainder of the 2012-2015 Supplier of Choice (SoC) contract period. They also proclaimed that they will supply to 82 Sightholders globally for the 2013-2014 ITO period, which begins on March 31. The addition of new Sightholders is a result of the company’s customized SoC re-planning process, which allows businesses that verified adequate demand through De Beers’ auction sales in 2012 to qualify for term contract supply and Sightholder status.
The company also said its ITO re-planning process has enabled existing Sightholders to qualify for new rough diamond allocations as part of their 2013-2014 ITOs. The new allocations are subject to forecast availability and reflect Sightholders’ demonstrated demand for rough diamond categories outside of their 2012-2013 ITOs. Sightholder status is subject to De Beers’ forecast rough diamond availability and the eligible applicant’s submission of a Contract Proposal Questionnaire (CPQ) as part of the 2013 ITO (intention to offer) re-planning process.
“The introduction of dynamism into this contract period is a further evolution in our Supplier of Choice strategy, which provides a greater level of flexibility for Sightholders and enables De Beers’ distribution to be more efficient,” said Varda Shine, executive vice president, Global Sightholder Sales. “We look forward to building strong and productive partnerships with our new Sightholders.”
