De Beers Diamond Sales.
Threat to De Beers diamond sales.
De Beers is the world's biggest diamond producer. Diamond giant De Beers is to go before South Africa's parliament on Wednesday to fight attempts to open up its tight grip on diamond distribution. The firm's marketing arm, the Diamond Trading Corporation (DTC), ships South African gems to London to be mixed with stones from elsewhere for onward sale.
It is the world's largest source of raw diamonds, and dominates world markets. The government wants restrictions on raw gem sales eased, to encourage the domestic jewellery business. But De Beers says the move could mean the end of its trading arm - and could harm smaller diamond mines.
"The Diamond Bill will have the effect of compromising the DTC's future viability," said Anglo American, the giant mining group which owns 45% of De Beers. De Beers produces about 60% of the world's diamonds.
BBC Business Report.