De Beers
Type	Privately held company
Founded	1888
Founder	Cecil Rhodes
Headquarters	Johannesburg, South Africa
Area served	Worldwide
Key people	Nicky Oppenheimer, Chairman Gareth Penny, Managing Director
Industry	Exploration, mining and trading of diamonds
Products	Diamonds
Services	Diamond marketing and promotion. Community development.
Revenue	▲ US $6.5 billion (2005)
Net income	▲ US $554 million (2005)
Employees	approximately 20,000
Website	www.debeersgroup.com

De Beers and the various companies within the De Beers Family of Companies engage in exploration for diamonds, diamond mining and diamond trading. For the computer game by Peter Molyneux, see The Entrepreneur. ... Cecil Rhodes Cecil John Rhodes, PC, DCL, (July 5, 1853 – March 26, 1902[1]) was a British-born South African businessman, mining magnate, and politician. ... Image File history File links Flag_of_South_Africa. ... This article is about the city in South Africa. ... Nicholas Nicky F. Oppenheimer (born 8 June 1945) is a billionaire South African businessman, the chairman of the De Beers diamond mining company and its subsidiary, the Diamond Trading Company. ... A Chairman is the presiding officer of a meeting, organization, committee, or other deliberative body. ... Gareth Penny (born 1962) is a South African businessman and Managing Director of De Beers. ... Managing director is the term used for the chief executive of many limited companies in the United Kingdom, Commonwealth and some other English speaking countries. ... This article is about the mineral. ... This article is about a term used in economics. ... For the tax agency in Ireland of the same name, see Revenue Commissioners. ... USD redirects here. ... Net income is equal to the income that a firm has after subtracting costs and expenses from the total revenue. ... This article is about work. ... A website (alternatively, web site or Web site) is a collection of Web pages, images, videos or other digital assets that is hosted on one or more web servers, usually accessible via the Internet. ... As a gemstone, diamond is perhaps the most valued. ...

De Beers is active in every category of diamond mining: open-pit, underground, large-scale alluvial, coastal and deep sea.^[1] Mining takes place in Botswana, Namibia, South Africa, Tanzania and Canada.

Mining in Botswana takes place through the mining company Debswana,^[2]a 50-50 joint venture with the Government of the Republic of Botswana. In Namibia it takes place through Namdeb,^[3] a 50-50 joint venture with the Government of the Republic of Namibia. Mining in South Africa takes place through De Beers Consolidated Mines (DBCM),^[4] a partnership with the broad based black economic empowerment partner, Ponahalo Investments. In Tanzania it occurs through a partnership with the government of Tanzania, 75% owned by De Beers, 25% by government. In 2007 De Beers began production at the Snap Lake Mine in Northwest Territories, Canada;^[5] this is the first De Beers mine outside of Africa. In 2008 De Beers will also open the Victor Mine in Ontario, Canada.^[6] Debswana Diamond Company Ltd, or simply Debswana, is a mining company located in Botswana, and is the worlds leading producer of diamonds by value. ... For the former United States territory, see Northwest Territory. ... A world map showing the continent of Africa Africa is the worlds second-largest and second most-populous continent, after Asia. ... This article is about the Canadian province. ...

Trading of diamonds takes place through the Diamond Trading Company through wholly-owned and joint venture operations in South Africa (DTCSA), Botswana (DTCB), Namibia (NDTC) and the United Kingdom (DTC). The various DTCs within the Family of Companies sort, value and sell approximately 40% of the world’s rough diamonds by value. The Diamond Trading Company (DTC) is a London-based subsidiary of the De Beers Group, specializing in the sale and marketing of rough (uncut) diamonds. ...

The Family of Companies employs over 7000 people in Botswana, over 7100 in South Africa, 3800 in Namibia, 700 in Canada and over 800 in Group Exploration.^[7]

Business structure

De Beers Investments is the privately held, ownership company of De Beers Societe Anonyme (DBSA), and is registered in Luxembourg. It is made up of three shareholdings: Anglo American plc has a 45% shareholding, Central Investments DBI has a 40% shareholding, and the Government of the Republic of Botswana owns 15% directly. De Beers Societe Anonyme (DBSA) is the management company of the De Beers group.^[8] Anglo American plc (LSE: AAL, JSE: ANGLO) is a world-wide group of companies, originally founded in South Africa as a mining enterprise but now extending into other areas. ...

Retail ventures

De Beers retail store on Rodeo Drive in Beverly Hills, California

In 2001, De Beers entered into a retail joint venture with French luxury goods company Louis Vuitton Moet Hennessy^[9] (LVMH) to establish an independently managed De Beers diamond jewellery company. Rodeo Drive sign Rodeo Drive (pronounced Spanish: ro-DAY-oh) generally refers to a famous three-block long stretch of boutiques and shops in Beverly Hills, California, United States, although the street stretches further north and south. ... For other uses, see: Beverly Hills (disambiguation). ... This article is about the U.S state. ... Louis Vuitton Moet Hennessy (usually shortened to LVMH) is the worlds largest luxury goods company. ...

The joint venture, called De Beers Diamond Jewelers Ltd sells diamond jewellery. The first De Beers store opened on Old Bond Street in London and there are now De Beers retail stores in the following locations:

• London at Bond Street, Royal Exchange and Harrods

• New York City at Fifth Avenue
• Beverly Hills at Rodeo Drive
• Las Vegas at The Forum Shops
• Houston at The Galleria
• McLean, Virginia at Tysons Galleria
• Dallas at NorthPark Center

• Paris at Le Printemps
• Moscow in Russia
• Kiev in Ukraine

• Japan - Tokyo, Osaka, Hakata, Yokohama, Kyoto, Kobe

• Taiwan in Taipei

• Korea in Seoul

• Hong Kong

• Waikiki

• Dubai at Mall of the Emirates, International Financial Center, and Wafi

• San Francisco in Union Square

This article is about the capital of England and the United Kingdom. ... An arcade in Old Bond Street Bond Street is a major shopping street in London which runs through Mayfair from Piccadilly in the south to Oxford Street in the north. ... This article needs additional references or sources for verification. ... Harrods is a department store on Brompton Road in Knightsbridge, London, England. ... New York, New York and NYC redirect here. ... Street sign at Fifth Avenue and East 57th street Fifth Avenue is a major thoroughfare in New York City. ... For other uses, see: Beverly Hills (disambiguation). ... Rodeo Drive sign Rodeo Drive (pronounced Spanish: ro-DAY-oh) generally refers to a famous three-block long stretch of boutiques and shops in Beverly Hills, California, United States, although the street stretches further north and south. ... The Las Vegas metropolitan area, includes the Las Vegas Valley a 600 square mile (1600 km²) basin, and surrounding areas, that are part of Clark County in southern Nevada. ... This page is a candidate for speedy deletion. ... Houston redirects here. ... Galleria I and ice rink prior to the 2003 renovation. ... Boundaries of the McLean CDP as of 2003. ... Tysons Galleria is an upscale shopping mall in McLean, Virginia (in the Washington, D.C., metropolitan area), owned by Chicago based General Growth Properties. ... Dallas redirects here. ... NorthPark Center is an upscale shopping mall located in north Dallas, Texas (USA) with over 120 stores and anchors. ... This article is about the capital of France. ... Boulevard Haussmann Printemps and Métro stop at night Printemps (meaning spring in French) is a French department store (or a grand magasin, literally big store). The flagship Printemps store is located on Boulevard Haussmann in the IXe arrondissement of Paris along with other famous department stores like Galeries Lafayette. ... For other uses, see Moscow (disambiguation). ... Map of Ukraine with Kiev highlighted Coordinates: , Country Ukraine Oblast Kiev City Municipality Raion Municipality Government  - Mayor Leonid Chernovetskyi Elevation 179 m (587 ft) Population (2006)  - City 4,450,968  - Density 3,299/km² (8,544. ... For other uses, see Tokyo (disambiguation). ... For other uses, see Osaka (disambiguation). ... Hakata (博多区; -ku) is a ward in Fukuoka, Japan with a population of 176,585. ... For the town of Yokohama in Aomori Prefecture, see Yokohama, Aomori. ... For other uses, see Kyoto (disambiguation). ... This article is about the Japanese city. ... This article is about the city. ... This article is about the Korean civilization. ... Short name Statistics Location map Map of location of Seoul. ... WaikÄ«kÄ« seen from the top of Diamond Head or LÄ“ahi. ... Location of Dubai in the UAE Coordinates: , Country Emirate Dubai Incorporated (town) June 9, 1833 Incorporated (emirate) December 2, 1971 Founder Maktoum bin Bati bin Suhail (1833) Seat Dubai Subdivisions Towns and villages Jebel Ali Hatta Al Hunaiwah Al Aweer Al Hajarain Al Lusayli Al Marqab Al Shindagha Al Faq... The Mall of the Emirates is a shopping mall in Dubai, United Arab Emirates. ... Wafi is a popular Arabic name that expresses multiple good characteristics such as reliable, trustworthy, perfect and loyal. The English translation of this name is either reliable, trustworthy, or loyal. There are popular locations with the Wafi such as The Wafi Centre, a shopping mall in Oud Mehta, Dubai, with... This page is a candidate for speedy deletion. ... Union Square is the central shopping, hotel and theater district in San Francisco. ...

Marketing

Over the last century, De Beers has been highly successful in increasing consumer demand for diamonds. One of the most effective marketing strategies has been the marketing of diamonds as a symbol of love and commitment. De Beers is often criticised, and also praised, for creating demand for the diamond engagement ring through its advertising.

A young copywriter, Frances Gerety coined the famous advertising line "A Diamond is Forever" in 1947, allegedly while she was dreaming.

In the year 2000, Advertising Age magazine named "A Diamond Is Forever" the best advertising slogan of the twentieth century.^[10]

Other successful campaigns started by De Beers include the "eternity ring" (as a symbol of continuing affection and appreciation), the "trilogy" ring (representing the past, present and future of a relationship) and the "right hand ring" (bought and worn by women as a symbol of independence).

De Beers is also known for its television advertisements featuring silhouettes of people wearing diamonds, to the music of Palladio by Karl Jenkins. Karl William Jenkins OBE (born February 17, 1944) is a Welsh musician and composer. ...

The Diamond Trading Company

The Diamond Trading Company, the rough diamond sales and distribution arm of the De Beers Group, sorts, values and sells approximately 40% of the world’s rough diamonds by value. Currently 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 Diamond Trading Company (DTC) is a London-based subsidiary of the De Beers Group, specializing in the sale and marketing of rough (uncut) diamonds. ...

The diamonds sold by the DTC are sourced primarily from De Beers’ own mining operations in South Africa and Canada, and through its joint venuture partnerships with the governments of Botswana, Namibia and Tanzania.

Technicians in London, Kimberley, Windhoek and Gaborone sort these diamonds into approximately 12,000 different categories based on size, shape, quality and colour, for DTC Sightholders.^[11]There are 79 Sightholder companies who buy the rough diamonds from the DTC and its partner offices. Sightholders travel to London, Kimberley, Gaborone and Windhoek ten times a year for their Sight. DTC Sales in 2007 were $5.9bn.

The DTC develops diamond technology and operates a research and development facility based in the UK, to support the consistency of DTC rough diamond assortments for Sightholders and downstream industries in the DTC’s producer partner countries.

Sightholders are required to comply with the De Beers’s Best Practice Principles (BPPs), which set out various objective standards of conduct within three main areas: business, social, and environmental responsibilities. The BPPs ensure that the De Beers Family of Companies, Sightholders and applicable third parties operate to an ethical, legal, professional, social and environmental standard, including being committed to the Kimberley Process.^[12]

The Kimberley Process

De Beers policy in the 1990s, which applied to all of Africa, was only to buy those diamonds that were legitimately traded and that it believed were not used to fund rebel groups, although as a leader in the industry they came under scrutiny and were widely believed to be a prominent dealer of conflict diamonds. In 1999, in line with a zero-tolerance policy, De Beers stopped all outside buying of diamonds in order to guarantee categorically the conflict-free status of De Beers diamonds.^[13][14]

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. Spanish president in the General Assembly in New York Org type: Principal Organ Acronyms: GA, UNGA Head: President of the UN General Assembly As of 18 September 2007 Srgjan Kerim former Yugoslav Republic of Macedonia Status: Active Established: 1945 Website: www. ... The Kimberley Process Certification Scheme (KPCS) is a scheme designed to prevent conflict diamonds (also known as blood diamonds) entering the mainstream rough diamond market. ...

De Beers states that 100% of the diamonds it now sells are conflict-free and that all De Beers diamonds are purchased in compliance with national law, the Kimberley Process Certification Scheme^[15] and its own Diamond Best Practice Principles.^[16] The Kimberley Process Certification Scheme , popularly known as KPCS is a process designed to certify the origin of rough diamonds from sources which are free of conflict. ...

De Beers is active in the Kimberley Process, and also an ongoing participant in the Diamond Development Initiative (DDI).^[17] The Diamond Development Initiative aims to address the political, social and economic challenges facing the small-scale informal diamond mining sector and to optimise the beneficial development impacts of small-scale formal diamond mining to diggers and their communities.

Legal issues

In 2004, De Beers pleaded guilty and paid a $10 million fine to the United States Department of Justice to settle a 1994 charge that De Beers had conspired with General Electric to fix the price of industrial diamonds (the diamonds used for industrial purposes such as abrasives on drills). General Electric had been to court to face the charges, but the case against GE was thrown out for lack of evidence. De Beers refused to appear in court, but ten years later "admitted [to] conspiring to fix prices in the industrial diamond market", pleaded guilty, and agreed to pay a $10 million fine.^[18][19] Robert F. Kennedy Department of Justice Building, Washington, D.C. For animal rights group, see Justice Department (JD) The United States Department of Justice (DOJ) is a Cabinet department in the United States government designed to enforce the law and defend the interests of the United States according to the... GE redirects here. ... Price fixing is an agreement between business competitors to sell the same product or service at the same price. ...

In November 2005, De Beers announced that an agreement had been reached and a preliminary approval order issued to settle the majority of civil class action price fixing suits filed against the company in the United States. In March 2006, the three remaining civil class action suits were added to the November settlement agreement.

In April 2008, De Beers confirmed that Judge Chesler, presiding, had issued his written opinion, and entered an order, approving the Settlement. This resulted in an overriding global settlement arrangement totaling US$295 million which has received preliminary court approval. De Beers does not admit liability, and the settlement will bring an end to all outstanding class actions. As part of the settlement, persons who purchased diamonds within the past ten years may be eligible for a certain level of compensation.^[20]

As part of the class action settlement, De Beers offered injunctive relief, which includes a general commitment to comply with the antitrust laws of the United States, and a commitment not to engage in specific conduct with third party producers and Sightholders. Injunctive relief is a typical component of class action settlements in the United States. An injunction is an equitable remedy in the form of a court order that either prohibits or compels (enjoins or restrains) a party from continuing a particular activity. ... This article is about anti-competitive business behavior. ... An injunction is an equitable remedy in the form of a court order that either prohibits or compels (enjoins or restrains) a party from continuing a particular activity. ...

In February 2006, it was announced that De Beers had voluntarily entered into legally binding commitments with the European Commission to cease purchasing rough diamonds from Alrosa as of 2009. Berlaymont, the Commissions seat The European Commission (formally the Commission of the European Communities) is the executive branch of the European Union. ... Almazy Rossii-Sakha, known as Alrosa, is Russias largest diamond company. ...

In January 2007, the European Commission announced that it had rejected all outstanding complaints against the Diamond Trading Company's Supplier of Choice sales strategy.

Changes to De Beers' business model

Sometimes referred to as a monopoly or cartel, De Beers, via the Central Selling Organisation, at one time sold approximately 80% of the world's diamonds. Currently the Diamond Trading Company sorts, values and sells approximately 40% of the world's rough diamonds by value. The Diamond Trading Company (DTC) is a London-based subsidiary of the De Beers Group, specializing in the sale and marketing of rough (uncut) diamonds. ...

A range of factors contributed to transformation. In the 1990s, diamond jewellery markets had fallen in comparison to other luxury goods. The behavior of consumers had changed and the diamond industry, being in a world unto themselves, had been slow to respond. De Beers’ custodianship and supply-controlled model was no longer viable, and the company was also unable to conduct business in several jurisdictions where it had interests or a corporate presence.

In addition, more producers from varied locations such as Russia, Canada, and Australia chose to distribute diamonds outside of the De Beers framework.

To address this, on behalf of its own interests and that of the industry as a whole, De Beers conducted a strategic review with Bain & Company, consequently changing its business model from a supply-controlled industry to that which was driven by demand. De Beers also implemented their Supplier of Choice sales strategy. Bain & Company is a management consulting firm, headquartered in Boston, MA, that is recognized as one of the leading business institutions in the world. ...

The diamond industry of today is markedly different to that of a decade ago, and is a complex and constantly evolving geo-political phenomenon.

Current major players in the diamond industry are the African producer countries, i.e. the Government of the Republic of Botswana, the Government of the Republic of Namibia, De Beers, Rio Tinto, BHP Billiton, Lev Leviev, Harry Winston, and Alrosa.^[21] A world map showing the continent of Africa Africa is the worlds second-largest and second most-populous continent, after Asia. ... Rio Tinto may refer to: Rio Tinto (Paraíba), in Paraíba State, Brazil. ... Billiton redirects here. ... Lev Avnerovich Leviev (born 30 July 1956, Tashkent) is an Israeli businessman with wide-ranging interests, including in the diamond trade, real estate and chemicals. ... This article does not cite its references or sources. ... Almazy Rossii-Sakha, known as Alrosa, is Russias largest diamond company. ...

External links

• www.debeersgroup.com De Beers Group official web site
• www.debeers.com De Beers Diamond Jewellery
• www.diamondfacts.org
• www.ddiglobal.org Diamond Development Initiative
• www.diamondsclassaction.com diamondsclassaction.com
• [15] KP rough diamond statistics site
• [16] De Beers reports
• [17] De Beers, Diamonds and Botswana - video story
• www.debswana.com Debswana official web site
• www.namdeb.com Namdeb official web site
• www.kimberleyprocess.com Kimberley Process official web site
• www.mine2mistress.com - From Mine to Mistress by Chaim Even-Zohar, Corporate Strategies and Government Policies in the International Diamond Industry

See also

• Diamond (gemstone)
• Diamonds
• Conflict diamonds
• Kimberley Process
• Diamonds as an investment

As a gemstone, diamond is perhaps the most valued. ... This article is about the gemstone. ... A conflict diamond (also called a blood diamond) is a diamond mined in a war zone and sold, usually clandestinely, in order to finance an insurgent or invading armys war efforts. ... The Kimberley Process Certification Scheme (KPCS) is a scheme designed to prevent conflict diamonds (also known as blood diamonds) entering the mainstream rough diamond market. ... This article discusses the use of diamonds as an investment. ...

Popular culture

• The popular band, the Arctic Monkeys, played "Diamonds are Forever" at Glastonbury in 2007.
• Crime journalist Kris Hollington has written a book, Diamond Geezers, about the spectacular attempted theft of the De Beers Millennium Collection from the Millennium Dome which took place in November 2000.
• The 1971 James Bond film Diamonds Are Forever directly cites De Beers.
• Comedian Ron White (of Blue Collar Comedy Tour fame) has mentioned the De Beers slogans in his stand-up routines, claiming that they should just "go ahead and say it: Diamonds...that'll shut her up."
• In 1994, the PBS special "The Diamond Empire" tells a very detailed story about the diamond industry. http://www.pbs.org/wgbh/pages/frontline/programs/transcripts/1209.html
• In Soldier of Fortune, episode 4, season 12 of the television show Law & Order, De Beers is the basis for the fictional Gerard Diamond Company.
• The 2003 comedy How To Lose A Guy In 10 Days depicts the fictitious diamond mogul couple, the "DeLauers". This is a play on the name De Beers.
• In the film Blood Diamond, De Beers is represented by the fictional corporation, Van De Kaap.
• In the film Flawless, De Beers is represented by the fictional corporation, London Diamond.
• In the 2007 comedy Knocked Up Seth Rogen's character, Ben Stone, proposes to Katherine Heigl's character, Alison Scott, with an empty box. He says he doesn't have the ring yet but one day he will give her the ring she deserves. He has already chosen it and it's at De Beers.
• The webcomic Questionable Content, in strip number 774, has sarcastically accused De Beers of "subverting humanity's genetic drive to reproduce so we'll buy more jewelry."
• The 2004 video game Grand Theft Auto: San Andreas features a commercial on one of its radio stations advertising the fictional company "De Koch Fine Jewels," a play on De Beers. De Koch's slogan is, "Shut that bitch up with ice."
• The animated television sitcom Family Guy features a fictional commercial in the vein of the De Beers commercials with the slogan, "Diamonds: She'll pretty much have to." Near the end of the commercial, the woman is seen dropping down in a manner suggestive of preparing to perform fellatio.

Arctic Monkeys are an English indie rock band from High Green, a suburb of Sheffield. ... This article does not adequately cite its references or sources. ... This article is about the spy series. ... Diamonds Are Forever (1971) is the seventh spy film of the British James Bond series and the sixth to star Sean Connery as the fictional MI6 agent James Bond. ... This article or section does not adequately cite its references or sources. ... From left to right : Larry the Cable Guy , Bill Engvall , Jeff Foxworthy and Ron White. ... This article is about the original television series. ... How to Lose a Guy in 10 Days is an American 2003 motion picture. ... Blood Diamond is an Academy Award-nominated 2006 adventure/drama/thriller film. ... Flawless is an American film that stars Robert De Niro and Philip Seymour Hoffman. ... Knocked Up is an American romantic comedy film written, co-produced, and directed by Judd Apatow was released in 2007. ... Questionable Content (abbreviated QC or Q.C.) is a slice-of-life webcomic written and drawn by Jeph Jacques. ... Grand Theft Auto: San Andreas is the fifth video game in the Grand Theft Auto series. ... Family Guy is an Emmy Award-winning American animated television series about a dysfunctional family in the fictional town of Quahog, Rhode Island. ...

References

• "World Diamond Council Counsumer Confidence Leaflet - Source: Eurostar Diamonds International"