Today marks a symbolic turning point in the diamond industry, as Sightholders and aspiring Sightholders alike will be notified by the DTC if they are on or off the short Sightholder list.

 

Speculations abound on who will ‘make it’ and who will ‘loose it’, as the diamond centers reacts with what one called “a wind of panic” while another says concern runs deep.

 

The long process that brought the industry to this point started after a strategic review within De Beers. The South African diamond miner decide on major changes, of which Supplier of Choice (SoC) is just part. Perhaps streamlining is the appropriate term, as De Beers decided to better communicate its mining operations, mostly extraction prediction and planning, with its selling arm to improve efficiency.

 

Improving communication with the other end of the industry, jewelry manufacturing and retailing is another aspect of this change. But in the middle are the diamond manufacturers who at times might have heard conflicting stories and speculations as to the SoC process.

 

In the beginning there was the questionnaire. It was met with observations from the market and comments from European regulatory authorities. The new, less obtrusive, questionnaire was handed out to current Sightholders and to a group of other diamond companies around the world requesting a sight.

 

It is believed that all current Sightholders turned in their applications, joined by about half of the potentials group. The next stage was a round of presentations by selected applicants, followed by submission of Per Forma requests for the second half of 2003.

 

Not all made it in. Some fear that as many as 40 Sightholders will be dropped from the list, others believe it will be a lot less. And as the DTC probably does want to streamline operations, shortening the list probably was not the main goal.

 

The decisions were principally based on three main parameters: performance, goods requested for H2 and goods availability.

 

Performance – the DTC has examined the questionnaires closely and probably rated them in some way.

 

Goods requested – New applicants might find that if they are interested in the meat and potatoes of the industry, that they will be competing against the biggest names in the industry. De Beers also wanted to see that applicants are keeping their requests realistic and within reasonable parameters.

 

Availability – As the DTC has better tools today to predict what it will have to offer and what not, obviously an applicant looking for goods that are not available will not likely get a sight.

 

These three parameters are the foundations on which the decisions stand. Source familiar with De Beers say that before a current Sightholder is dropped from the list, they will closely examine and re-examine every aspect of the application.

 

The happily notified will receive a sight for two years, starting from sight six (the July sight). At the end of the two-year period the process of applying will start over.