Participants in the Indian diamond industry, suffering from a constant shortage of rough diamonds, welcomed De Beers' recent announcement of a change in the sales model.
De Beers has adopted a more flexible approach to sales of rough diamonds to non-sightholder companies that can now purchase diamonds through the Global Sightholder Selling System (GSS).
The updated model for the distribution of raw materials provides for the application of a new method for determining the GSS customer base in accordance with the new simplified process of qualifying clients based on their compliance with De Beers requirements and their demand for rough diamonds.
As De Beers CEO Philippe Mellier stated: "The sightholder system has been the foundation of our sales model for many decades and will remain so in the new contract period. However, the changes that we are going to introduce give more flexibility when acquiring the De Beers product. They will allow companies that demonstrate high demand for our rough diamonds to buy it on a fixed-term contract as sightholders; we also offer diamond companies that are not sightholders to demonstrate their demand for De Beers diamonds. "
Through the GSS division in Gaborone, about 90% of all De Beers raw materials are sold in value terms.
The new system of distribution of rough diamonds will be applied from the next contract period - from March 2015 to March 2018.