De Beers has removed between 20 and 25 companies from its list of sightholders, reflecting market consolidation and changing realities.
Customers found out on Friday whether they would receive a rough-supply contract for the new sightholder agreement period, which begins on July 1.
Several sources said that the precise number of companies that lost their sight was 21 out of a total clientele of 69. One new business has been added, sources said. De Beers declined to comment.
Many manufacturers lost their sightholder status in Botswana, meaning that they will no longer receive rough for their polishing factories in the African country. These companies had essentially ceased production in Botswana because of the high costs, and many had already stopped obtaining consistent supply last year.
De Beers will make goods available on an ad-hoc basis — known as ex-plan — for 18 months to companies with operational factories in Botswana that no longer have a supply contract, sources told Rapaport News.
Several Israel-based companies also lost their status, according to insiders. The official list — which De Beers usually displays on its website — will be available only in July.
De Beers first announced it was trimming its sightholder list in late 2024, saying it could not have meaningful relationships with 69 customers. Around a year later, it extended its existing contract by six months to June 30, 2026, citing market uncertainty.
The transition is consistent with the downsizing of the diamond industry because of weaker and more focused demand, as well as challenges sightholders have had turning profits from De Beers diamonds. De Beers’ rough is usually more expensive than goods at other tenders and auctions, as sightholders pay a premium for consistent supply.
It also comes amid owner Anglo American’s efforts to sell De Beers — a process that industry commentators expect to take a long time.
Image: Rough-diamond sorting. (De Beers)
