De Beers

De Beers is a cartel of companies that trade in rough diamond exploration, diamond mining and diamond trading. Founded by Cecil Rhodes, the various companies within the De Beers "family of companies" are responsible for around 40% of world diamond production by value, and were belived at one point to be a prominent seller of conflict diamonds.

De Beers is active in every category of diamond mining: open-pit, underground, large-scale alluvial, coastal and deep sea.

De Beers has a presence in 25 countries, largely on account of its extensive exploration activities. Mining takes place in Botswana, Namibia, South Africa and Tanzania. Mining in Botswana takes place through the mining company Debswana, a 50-50 joint venture with the government of Botswana. In Namibia it takes place through Namdeb, a 50-50 joint venture with the government of Namibia. Mining in South Africa takes place through De Beers Consolidated Mines (DBCM), 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 is expected to open its first mine in Canada (called "Snap Lake", Northwest Territories, Canada).

The sales and marketing arm of De Beers is a company called the Diamond Trading Company (the DTC). This company sells almost half of the world’s rough diamonds by value. Other diamonds sold through the DTC include those purchased from the Russian diamond mining company Alrosa[6], although that relationship is due to end in 2009 after a ruling by the European Commission, the EU's anti-trust watchdog, effectively establishing Alrosa as a direct competitor to De Beers from that time. The DTC also creates and develops marketing programmes to stimulate interest in, and demand for, diamonds and diamond jewellery.

The rough diamonds sold by the DTC are purchased by a group of the world’s leading diamantaires known as sightholders.Sightholders buy tailored assortments of rough diamonds from a blended (or aggregated) “mix” of diamonds from the different mines. These clients are chosen following assessment against a set of objective selection criteria according to their ability to add value to diamonds as well as their audited adherence to the DTC’s Diamond Best Practice Principles,. which cover business ethics, the Kimberley Process Certification Scheme and the industry’s System of Warranties, labour standards, health and safety as well as environment.

Retail ventures
In 2001, De Beers entered into a retail joint venture with French luxury goods company Moet Hennessy Louis Vuitton (LVMH) to establish an independently managed De Beers diamond jewelery company.[20] The joint venture, called De Beers Diamond Jewelers Ltd sells diamond jewelery. 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
* Tokyo at Ginza, Nihonbashi, and Shinjuku
* Osaka at Shinsaibashi and Umeda
* Dallas at NorthPark Center
* New York City at Fifth Avenue
* Beverly Hills at Rodeo Drive
* Houston at The Galleria
* Paris at Le Printemps
* Las Vegas at The Forum Shops
* Dubai at Mall of the Emirates
* McLean, Virginia at Tysons Galleria

Laboratory created synthetics

Since the 1950s, it has been possible to create synthetic diamonds in a laboratory. These laboratory created stones have since been used for many industrial purposes, such as for abrasives in heavy duty drilling. It is now also possible to produce laboratory created synthetics that are indistinguishable optically from mined diamonds even by professional vendors, making them suitable for jewelery. These are generally colored gems, but at least one company, Apollo Diamond, is offering colorless synthetics.[21]

As part of De Beers' "Gem Defensive Programme", The Diamond Trading Company has developed instruments, mainly for use by the trade and gemological laboratories, which according to DTC can detect all "treatments, synthetics and simulants." The DTC also funds educational programs about treatments that can change the appearance and other properties of diamonds, and lobbies for all diamond treatments and synthetics to be labeled as such. According to the DTC, these activities are undertaken in cooperation with leading trade bodies as a means of "ensuring full and accurate information is provided to consumers.