Global diamond giant, De Beers is believed to be considering significant changes to the way it sells diamonds following a terrible year for the companies that cut, polish and trade the gems.
The Anglo American unit, is reportedly planning to significantly cut the number of its sightholders as well as reconsidering the way that diamonds are allocated among the group, according to Bloomberg citing unnamed sources.
De Beers’ current six-year contract with buyers expires at the end of this year.
It is anticipated that the group will strengthen the remaining businesses by reducing the number of its customers.
Its executives will this week meet the sightholders in Botswana for De Beers’ first sale of the year and annual cocktail party.
It is believed that De Beers will provide an update on possible changes during the gathering.
A De Beers spokesperson said in a statement that they will communicate directly with customers in the coming months about the new contract, which will focus on maximizing the opportunities in the new diamond world.
The diamond industry experiencing an oversupply of polished diamonds last year, which led to sharp price drops than for rough stones.
De Beers was forced to lower prices across the board by about 5%.
It also offered flexibility to its diamond buyers as midstream trading conditions were in the process of rebalancing.