Leviev ‘Applying to Become Sightholder’

“Leviev intends to become a Sightholder. De Beers will find it hard to refuse as he meets all the six requirements set by the syndicate.” the Post quoted sources as saying.

Arik Sela, managing director of DTC brokers I. Hennig & Co in Tel Aviv, said De Beers was “open to applications from anyone” for a Sightholder position. The deadline for applications to receive a Sight is on November 26 and De Beers will announce its decisions on applications received by the middle of next year.

If De Beers rejects Leviev’s application, the European Commission, which requires that companies meeting De Beers’ Supplier of Choice criteria are awarded a Sightolder position, would probably overturn such a decision, the Post said.

Leviev, whose diamond business amounts to more than $2 billion annually, is battling De Beers for control of the crucial African market.

In July, Leviev opened what was described as Africa’s biggest diamond-polishing factory in Namibia, an operation with the capacity to employ 550 workers. According to media reports, he is offering to build a larger factory in Botswana, employing tens of thousands of people.

Leviev has also signed a deal with Sodiam S.A.R.L., the Angolan diamond marketing company controlled by state diamond firm for a strategic marketing partnership of Angolan diamonds and an Angolan diamond brand.

In thinly veiled attacks on De Beers, Leviev has publicly wondered about the claim that African diamonds can’t be polished where they are mined.

With high unemployment rates, African producer countries are said to find Leviev’s proposals attractive since setting up polishing plants would provide work and give added value to their diamond exports.

Receiving a sight from De Beers would give Leviev the rough needed for a Botswana operation and increase the pressure on De Beers to offer benefits to African diamond producers.