Indian Diamond Firm to Buy More From Miners, Bypassing De Beers
Diamond India Ltd. plans to boost imports of rough diamonds directly from miners as De Beers, the world’s biggest supplier, may cut sales to a select group of customers, or so-called sightholders, in the South Asian nation.
The company may seek supplies from miners in Russia, Angola and Botswana to pare its reliance on the world’s biggest diamond company, Sanjay Kothari, chairman of the Gem & Jewellery Export Promotion Council that founded Diamond India, told reporters in Mumbai today.
“The government has advised us to widen our sources of supply and with De Beers planning to reduce the number of sightholders, we will speed up our efforts,” Kothari said. “We will be more aggressive in sourcing from other miners.”
Lower purchases from De Beers may help producers such as Rio Tinto Ltd. and Russia’s ZAO Alrosa to increase sales in the world’s second-fastest growing major economy. De Beers, supplier of more than half of the world’s rough diamonds, expects sales in India and China to grow more than 10 percent a year over the next few years as rising incomes fuel demand for jewelry.
Diamond Trading Co., the distribution unit of De Beers, may remove eight Indian sightholders from April 2008, while adding three new customers, Kothari said. Lynette Gould, a spokeswoman for De Beers in London, declined to comment before the Diamond Trading Co.’s new supply contract begins in April.The company may seek supplies from miners in Russia, Angola and Botswana to pare its reliance on the world’s biggest diamond company,