New Era for DeBeers Diamond Business: From London to Botswana

NEW ERA FOR DE BEERS` DIAMOND BUSINESS: FROM LONDON TO BOTSWANA

The Diamond business, that took place for over than 120 years in London, has now been moved to Gaborone, Botswana. The London office opened for business back in 1930`s by establishing the Diamond Trading Company, which controlled rough diamonds market ever since. The Diamond Trading Company belonging to the De Beers focused mainly on valuing, sorting and sales of rough diamonds to many international handpicked clients. Their business was booming and reached peak in sales in 80`s and 90`s. This very successful venture soon after started experiencing slow down in share market. The De Beers practice was to manipulate the international diamond market for many years, but in year 2000 new changes took place and De Beers limited their sales to own mined products. Shortly after that the shares of rough diamond sales suddenly dropped to 50 percent in 2006 and continued dropping up to 37 percent in 2012.

In January 2011 De Beers signed agreement with Botswana government to start business sales activities by the end of the year 2013. The major decision for transformation was to keep alive the sight system, keep buyers such as Tiffany & Co., Chow Tai Fook and Indian families and other retail businesses. This 10 year contract boosts Botswana employment opportunities and investments. Botswana , as a largest and richest producer of diamonds, owned by De Beers, shall now become one of the global diamond hubs.

This is a $79 billion dolar industry , employing over 15 tausend people and along with De Beers relocating their London Diamond Trading office to Gaborone , it is expected , that it will give a real impact to Botswana. Diamonds from all de Beers mines will now be brought t...

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...ointed vicepresident is Mr Paul Rowley who is with De Beers since 1983 and will continue in sales operations for Diamond Trading Company Botswana.

De Beers were facing in recent 20 years the decreasing production , selling 40% of their stake to Anglo-American Plc, limiting its sales to its own mines, moving the traditional epicentre from London to Botswana and with Dubai now positioning itself as the upcoming diamond route to India and China , it may be difficult to sustain the status of the Traditional Diamond Trading Centre. However, as the recent international sight in November 2013 successfully welcomed 81 sightholders from New York, Mumbai, Tel Aviv and Antwerp in Gaborone, it might prove to be also very successful decision. We can just wish all the best in the progress and hope more sucess will come on the way.

Works Cited

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