De Beers will undergo a major transformation as the company moves from being a custodian of the diamond market to a preferred supplier.
This week it will outline its new strategy where the company plans to formalise long-standing gentlemen’s agreements with its diamond trading partners that will see benefits for all parties.
It is believed that partners will possibly be asked to contribute to De Beers marketing efforts that amount to $200m a year, while in return, one analyst expects that De Beers will provide better service to sightholders, by supplying what the customer demands.
In the past, clients had to make do with the diamond parcel received, or risk losing their status as sightholders, although he was able place orders.
The contract is expected to include a clause that any client caught trading in conflict diamonds will be struck off the De Beers list. This is a move to attempt to halt the fuelling of African wars and civil wars by the sale of illegal diamonds.