DTC MD Shine Acknowledges: Fewer Sightholders under New Contract

Diamond Trading Company (DTC) Managing Director Varda Shine has acknowledged that the number of Sightholders will be reduced under the new contract, starting April 1, 2008. In a speech to Sightholders on Sunday, Shine told the listeners that reduced availability of goods, and DTC's commitment to Southern Africa producers, is the cause.

In her address, Shine recognized the role Antwerp plays in the diamond trade, discussed the transfer of much of the DTC’s diamond activities from London to southern Africa, and then spoke about sustainability.

The DTC, Shine said, supports Africa's beneficiation efforts, "It is the right thing to do" she quoted De Beers Chairman Nicky Oppenheimer.

The possible consequences of focusing on the joint venture operations in Botswana and Namibia are an anticipated lower availability of goods from De Beers' mines for the coming 3-year Supplier of Choice (SoC) contract.

"There is an inevitability that fewer goods will be available for sale to the traditional cutting centers, including Antwerp," Shine said, adding, "I am keen that all applicants are aware that the impact of less availability, increasing competition and our complete commitment to the beneficiation objectives and requirements of our JV partners will, inevitably, result in us being able to offer an economically efficient level of supply to fewer Sightholders than under the current contract. I tell you this, not to frighten you, but to be open and transparent."

This is the first time the DTC has openly stated that the number of Sightholders will be reduced during the 2008-2011 contact period.

Shine said the DTC currently has no idea how many clients it will be supplying in the next contract period. "That number will be an output of our objective selection process later this year."

The application process for the next contract period has already started. Interested companies are required to submit the application questionnaire in July.