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.
Global diamond giant De Beers Group announced Tuesday it is implementing an updated model for the allocation of rough diamonds by its primary distribution arm, Global Sightholder Sales (GSS), for the March 2015 to March 2018 contractual period.
The fresh model, said the Anglo American (LON:AAL) unit, involves a new method for determining GSS’s rough diamond customer base, with a simplified, compliance and demand-based customer qualification process being introduced.
The world’s largest diamond miner by market value also said it will adopt a more flexible sales approach, through which non sightholder diamond businesses would have opportunities to buy rough diamonds from GSS.
“The more rigorous financial and existing ethical compliance requirements will also help to reinforce third-party confidence in the strength and transparency of GSS’s customer base,” De Beers Group CEO Philippe Mellier said in the statement.
This is not the first innovation to rough diamonds sales De Beers introduces this year. In January, the firm said it has not ruled out an expansion of its Victor diamond mine in Canada. In March, it revealed it was looking to tap into the new markets, landing later a new diamond exploration license in Angola, the world’s fourth largest producer of diamonds by value, and sixth by volume.
Around 90% of De Beers’ total rough diamond availability by value is sold through GSS.
2 Comments
Brien
When DeBeers was the only monopolist in the industry, I always advised buyers not to touch diamonds as it was a monopoly controlled price. In fact, when “blood” diamonds were the issue, DeBeers diamonds were the true “blood” diamonds when considering their conditions in their mines and their iron control over prices AND workers. The “blood diamond’ issue was a useful scam by the monopolists. The prices are still controlled by an organised bunch of monopolists.
samarendra dey
Monopolism began with the underpinning of god to be one master, it is this original derivative that our global human considerations began its history of calculated slavery by which the wealth of god given earth began its transfer of title to become by trusteeship as god was unavailable to answer or provide the title, a well planned Coup d’etat by the servants of the declared born King, The High Priest, The Treasurer and The Regional Governors, who in the name of the King duly appointed to be the Trust of God on Earth and intern trusted these appointed selective trustee to oversee the wealth distributed in due care for the citizens, their welfare in health and habitat instead spent it on to their secret pleasures and games. It is from here the carnal sin of Derivatives arrived on earthly matters and the need of secrecy to wedge a divide in good and bad evil and right beggar and king servant and paymaster landlord and tenant! With this grew the power of the coin and third party risk Insurance cover the tax that all pay for this creative and conspired sin against god to keep him invisible and a play of the mind.