De Beers Destroying Transparency

Rapaport Claims De Beers Does Not Allow

Clients to Disclose the Source of Their Diamonds

 

The Rapaport Group has issued a statement saying that De Beers is destroying transparency in the diamond industry by not allowing its clients to disclose the source of their diamonds. The full text of the statement is available here.

 

The statement claims that “all De Beers’ rough diamonds are now opaque. That’s 42% of the world’s legitimate diamond production in 2017, and $14.993 billion of rough diamonds from 2015 through 2017.”

 

The statement cites the De Beers “Sightholder Signature License Agreement Clause 3.6.6: ‘you will not represent that any particular diamond or diamonds are sourced, or originate, from us or any member of the De Beers Group except with our prior written consent.’” It also refers to a De Beers letter that states, “In relation to programmes such as GIA’s ‘Mine to Market’ (M2M), or other downstream entities’ initiatives seeking to make provenance claims. We have declined all such requests.”

 

Martin Rapaport, Chairman of the Rapaport Group, said, “De Beers is extending its market power from rough to polished markets through exclusive polished distribution networks such as Forevermark. They are making it impossible for independent third parties to source-certify their diamonds, thereby disabling legitimate diamond distribution systems. De Beers is using its market power to restrain competition in the market for legitimate source-certified polished diamonds.…

 

“With extensive human suffering in developing countries such as Zimbabwe, the Congo and others, as well as billions of dollars of diamonds not subject to human rights, AML and CTF compliance, the Rapaport Group begs De Beers to do the right thing and allow its clients to disclose the legitimacy of their diamonds.”

 

The Rapaport statement calls on De Beers to immediately cancel its restrictions on disclosing the legitimate source of diamonds. It asks all responsible members of the diamond industry to directly email De Beers CEO Bruce.Cleaver@DeBeersGroup.com and request that De Beers end its restrictions on source disclosure.

  

Key: DeBeers, Sightholder, rough diamond

 

 

  • De Beers Destroying Transparency