Diamond Trading Company
Encyclopedia
The Diamond Trading Company (DTC) is the rough diamond sales and distribution arm of the De Beers
Family of Companies. The DTC sorts, values and sells approximately 75% of the world’s rough diamonds by value. The DTC has a combination of wholly owned and joint venture operations in South Africa (DTCSA), Botswana
(DTCB), Namibia
(NDTC
) and the United Kingdom (DTC).
The DTC sells diamonds that are sourced primarily from De Beers’ mining operations in South Africa and Canada, and through its partnerships with the governments of Botswana, Namibia and Tanzania
. Sorters in London, Kimberley
, Windhoek
and Gaborone
sort these diamonds into approximately 12,000 different categories based on size, shape, quality and colour. DTC clients are known as Sightholder
s, and are selected by a process known as Supplier of Choice. There are 79 Sightholder companies who buy the rough diamonds from the DTC and its partner offices. The Sightholders travel to London, Kimberley, Gaborone and Windhoek ten times a year for their Sight.
DTC Sales in 2009 were $3.84bn. The DTC also develops and produces diamond technology, which ensures consistency of DTC rough diamond assortments for its Sightholder clients.
The DTC’s Sightholders are required to comply with the De Beers’s Best Practice Principles (BPP)s which set out various objective standards of conduct within three main areas – Business responsibilities; Social responsibilities; Environmental responsibilities. The BPPs ensure that the De Beers Family of Companies, DTC Sightholders and applicable third parties are operating to the specific ethical, legal, professional, social and environmental standards. The DTC also requires its clients to be 100% committed to the Kimberley Process.
The Kimberley process started when Southern African diamond-producing countries met in Kimberley, South Africa, in May 2000, to discuss ways to stop the trade of ‘conflict diamonds’ and ensure that diamond purchases were not funding violence or terrorism activities. In December 2000, the United Nations General Assembly
adopted a landmark resolution supporting the creation of an international certification scheme for rough diamonds. By November 2002, negotiations between governments, the international diamond industry and civil society organisations resulted in the creation of the Kimberley Process Certification Scheme (KPCS). The KPCS sets out the requirements for controlling rough diamond production and trade. The KPCS became effective in 2003.
De Beers
De Beers is a family of companies that dominate the diamond, diamond mining, diamond trading and industrial diamond manufacturing sectors. De Beers is active in every category of industrial diamond mining: open-pit, underground, large-scale alluvial, coastal and deep sea...
Family of Companies. The DTC sorts, values and sells approximately 75% of the world’s rough diamonds by value. The DTC has a combination of wholly owned and joint venture operations in South Africa (DTCSA), Botswana
Botswana
Botswana, officially the Republic of Botswana , is a landlocked country located in Southern Africa. The citizens are referred to as "Batswana" . Formerly the British protectorate of Bechuanaland, Botswana adopted its new name after becoming independent within the Commonwealth on 30 September 1966...
(DTCB), Namibia
Namibia
Namibia, officially the Republic of Namibia , is a country in southern Africa whose western border is the Atlantic Ocean. It shares land borders with Angola and Zambia to the north, Botswana to the east and South Africa to the south and east. It gained independence from South Africa on 21 March...
(NDTC
NDTC
NDTC is a 50/50 joint venture between the Republic of Namibia and the DTC; the mining and sorting arm of De Beers. Namibia is a known source for gem quality diamonds and is the fourth-largest exporter of nonfuel minerals in Africa...
) and the United Kingdom (DTC).
The DTC sells diamonds that are sourced primarily from De Beers’ mining operations in South Africa and Canada, and through its partnerships with the governments of Botswana, Namibia and Tanzania
Tanzania
The United Republic of Tanzania is a country in East Africa bordered by Kenya and Uganda to the north, Rwanda, Burundi, and the Democratic Republic of the Congo to the west, and Zambia, Malawi, and Mozambique to the south. The country's eastern borders lie on the Indian Ocean.Tanzania is a state...
. Sorters in London, Kimberley
Kimberley, Northern Cape
Kimberley is a city in South Africa, and the capital of the Northern Cape. It is located near the confluence of the Vaal and Orange Rivers. The town has considerable historical significance due its diamond mining past and siege during the Second Boer War...
, Windhoek
Windhoek
Windhoek is the capital and largest city of the Republic of Namibia. It is located in central Namibia in the Khomas Highland plateau area, at around above sea level. The 2001 census determined Windhoek's population was 233,529...
and Gaborone
Gaborone
' is the capital and largest city of Botswana with a population of 191,776 based on a 2006 survey, about 10% of the total population of Botswana....
sort these diamonds into approximately 12,000 different categories based on size, shape, quality and colour. DTC clients are known as Sightholder
Sightholder
A sightholder is a company on the Diamond Trading Company's list of authorized bulk purchasers of rough diamonds. DTC is controlled by the De Beers Group, the single largest producer and purveyor of rough diamonds in the world...
s, and are selected by a process known as Supplier of Choice. There are 79 Sightholder companies who buy the rough diamonds from the DTC and its partner offices. The Sightholders travel to London, Kimberley, Gaborone and Windhoek ten times a year for their Sight.
DTC Sales in 2009 were $3.84bn. The DTC also develops and produces diamond technology, which ensures consistency of DTC rough diamond assortments for its Sightholder clients.
The DTC’s Sightholders are required to comply with the De Beers’s Best Practice Principles (BPP)s which set out various objective standards of conduct within three main areas – Business responsibilities; Social responsibilities; Environmental responsibilities. The BPPs ensure that the De Beers Family of Companies, DTC Sightholders and applicable third parties are operating to the specific ethical, legal, professional, social and environmental standards. The DTC also requires its clients to be 100% committed to the Kimberley Process.
The Kimberley process started when Southern African diamond-producing countries met in Kimberley, South Africa, in May 2000, to discuss ways to stop the trade of ‘conflict diamonds’ and ensure that diamond purchases were not funding violence or terrorism activities. In December 2000, the United Nations General Assembly
United Nations General Assembly
For two articles dealing with membership in the General Assembly, see:* General Assembly members* General Assembly observersThe United Nations General Assembly is one of the five principal organs of the United Nations and the only one in which all member nations have equal representation...
adopted a landmark resolution supporting the creation of an international certification scheme for rough diamonds. By November 2002, negotiations between governments, the international diamond industry and civil society organisations resulted in the creation of the Kimberley Process Certification Scheme (KPCS). The KPCS sets out the requirements for controlling rough diamond production and trade. The KPCS became effective in 2003.
See also
- Diamonds
- Diamonds (gemstone)
- Kimberley ProcessKimberley ProcessKimberley Process Certification Scheme is the process designed to certify the origin of rough diamonds from sources which are free of conflict funded by diamond production....
- Diamonds as an investmentDiamonds as an investment-History:Diamonds have been treasured as gemstones since the ancient times. Popularity of diamonds has risen since the 19th century because of successful advertising in spite of a greatly increased supply. Diamonds are not normally used as a mainline store of value during times of crisis, because...