DTC cocktail party ends on an ambitious note

The DTC Sightholder cocktail party, which was held two nights ago in London concluded on a positive note. Although the recent past has not been so pretty with DTC slacking its number of sightholders, Nicky Oppenheimer stated that several personal friends would no longer be buying diamonds directly from De Beers but, “At the same time, it is exciting to welcome new players who I am sure will add luster and vibrancy to the industry as a whole. Varda Shine (DTC Managing Director) has kept me closely in touch with the whole process and she and her team have met every challenge I placed before them.” He also spoke about the huge importance of the emergence of India, China and the Middle East as major diamond buyers and said that the fact that these ‘new’ players will be a balance to the USA should give great confidence.

De Beers Managing Director Gareth Penny noted that in 2007 De Beers had introduced improvements to find new deposits of rough. He added: “As we look forward to opening several new mines this year, we have also sold on some of our operations that no longer fit with the business model we seek to deploy. To attain profitable growth, we must remain aware of costs. As India and China continue to register outstanding economic growth, their demand for finite supplies of natural resources has resulted in higher resource prices.” He went on to say that all these efforts would come to nought if we do not continue to instil confidence in the consumer and uphold and protect the reputation of diamonds.

DTC Managing Director Varda Shine admitted that the recent changes in DTC policies have not been easy for anyone. However, she noted: “I believe that the new Sightholder contract was implemented fairly and objectively, applying the same rules to every applicant. I believe too that it has resulted in a list of diverse, quality Sightholders that are best placed for future success, particularly in the current environment of constrained supply.” She went on to say that what DTC is offering can be summed up in two words - partnership and excellence - and DTC expects the same in return. A third requirement is financial, professional and ethical accountability. “You know that we will only be confirming supply contracts following the completion of third party verification of your contract proposals. We are setting high standards for ourselves … and we expect you to share those standards.” She also highlighted the road ahead to be taken by DTC along with its partners, saying “DTC Botswana will be opening its new building in Gaborone and we will be working on our plans to transfer aggregation from London to their fantastic new facility in 2009. The new Sightholder contract will mark the completion of major period of change in the structure of our business relationship with you, our clients. Our joint ventures with the Governments of Namibia and Botswana are start up businesses. They have access to the knowledge and expertise of the DTC and will adapt as lessons are learnt. Together, the DTC, its producer partners and the Sightholders with operations in these countries will continue to seek ways of maximising the value of diamonds and work together to ensure that a sustainable downstream business is created.”

Shine asked the Sightholders to benefit DTC’s initiatives with feedback to make ways for improvements. She also clarified the changes in the policies of the FOREVERMARK, saying: As you know, in future participation in the FOREVERMARK will be open to all eligible diamantaires and not just DTC Sightholders. This means that existing and new DTC Sightholders through their continuing compliance with the Best Practice Principles will meet one of the fundamental criteria to be a FOREVERMARK diamantaire.” De Beers Group Marketing will continue to build consumer demand for diamonds, maintain consumer confidence and build and develop the FOREVERMARK. The FOREVERMARK Shine said will become a universal brand, the definitive point of reference in the industry and in the minds of consumers.