RAPAPORT… De Beers has extended its current sightholder contract by three months after the Covid-19 pandemic disrupted the renewal process.
The supply agreement, originally due to expire on December 31, will remain in place until March 31, 2021, a De Beers spokesperson told Rapaport News Monday. This means the contract will now cover the first three sights of next year, which are scheduled to start on January 18, February 22 and March 22.
De Beers paused applications for the new contract earlier this year to help customers focus on their core businesses during the downturn. Under the new system, the company was due to split sightholders into three categories — manufacturers, dealers and retailers — and offer each group a more bespoke selection of goods.
Alrosa announced last week it was also extending its current supply contract to March 31 next year because of market uncertainty.
Image: Student learning to sort rough diamonds at De Beers’ Global Sightholder Sales Academy in Botswana. (Ben Perry/Armoury Films/De Beers)
De Beers Delays New Sightholder Contract
The Bottom Line
- De Beers extended the current sightholder contract from December 31, 2020, to March 31, 2021.
- The extension covers the first three sights of 2021, scheduled for January 18, February 22, and March 22.
- De Beers paused new contract applications to allow customers to focus on core business amid the pandemic and planned to categorize sightholders into manufacturers, dealers, and retailers with tailored goods.
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