De Beers 53713 225848471 2008-07-15T18:03:17Z 24.130.143.234 {{Infobox Company | company_name = De Beers | company_logo = | company_logo = [[Image:De Beers.svg|185px]] | homepage = [http://www.debeersgroup.com www.debeersgroup.com] | company_type = Privately held company | genre = | foundation = 1888 <!-- this parameter modifies "Founded" --> | founder = [[Cecil Rhodes]] | location_city = {{flagicon|South Africa}} [[Johannesburg]] | location_country = [[South Africa]] | origins = | key_people = [[Nicky Oppenheimer]], [[Chairman]]</br></br> [[Gareth Penny]], [[Managing Director]] | area_served = Worldwide | industry = Exploration, mining and trading of diamonds | products = [[Diamond]]s | services = Diamond marketing and promotion. Community development. | revenue = {{Profit}} [[United States Dollar|US $]]6.5 billion (2005) | operating_income = | net_income = {{Profit}} US $554 million (2005) | num_employees = approximately 20,000 | parent = | divisions = | subsid = | owner = | company_slogan = A Diamond Is Forever | dissolved = | footnotes = }} '''De Beers''' and the various companies within the De Beers Family of Companies engage in exploration for [[diamond (gemstone)|diamonds]], diamond mining and diamond trading. De Beers is active in every category of diamond mining: open-pit, underground, large-scale alluvial, coastal and deep sea.<ref>[http://www.debeersgroup.com/en/Exploration-and-mining/]</ref> Mining takes place in [[Botswana]], [[Namibia]], [[South Africa]], [[Tanzania]] and [[Canada]]. Mining in [[Botswana]] takes place through the mining company [[Debswana]],<ref>[http://www.debeersgroup.com/en/Inside-De-Beers/Family-of-Companies/Debswana/]</ref>a 50-50 joint venture with the Government of the Republic of [[Botswana]]. In [[Namibia]] it takes place through Namdeb,<ref>[http://www.debeersgroup.com/en/Inside-De-Beers/Family-of-Companies/Namdeb/]</ref> 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),<ref>[http://www.debeersgroup.com/en/Inside-De-Beers/Family-of-Companies/De-Beers-Consolidated-Mines/]</ref> 74% owned by DeBeers and 26% by a 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 Diamond Mine|Snap Lake Mine]] in [[Northwest Territories]], [[Canada]];<ref>[http://www.debeerscanada.com/files_2/snap_lake/snap_project-developmen_phase-three.html]</ref> this is the first De Beers mine outside of [[Africa]]. In 2008 De Beers will also open the Victor Mine in [[Ontario]], Canada.<ref>[http://www.debeersgroup.com/en/Inside-De-Beers/Family-of-Companies/De-Beers-Canada/]</ref> 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 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.<ref>[http://www.debeersgroup.com/en/Media-centre/Reports/]</ref> ==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 Holdings (the [[Oppenheimer]] family) 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.<ref>[http://www.debeersgroup.com/en/Inside-De-Beers/Family-of-Companies/]</ref> ==De Beers Diamond Jewellers== [[Image:DeBeersBevHills.jpg|thumb|right|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]]<ref>[http://www.lvmh.com LVMH - Louis Vuitton Moet Hennessy ]</ref> (LVMH) to establish an independently managed De Beers diamond jewellery company. The joint venture, called De Beers Diamond Jewellers 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 (London)|Royal Exchange]] and [[Harrods]] *[[New York City]] at [[Fifth Avenue]] *[[Beverly Hills]] at [[Rodeo Drive]] *[[Las Vegas metropolitan area|Las Vegas]] at [[Forum Shops|The Forum Shops]] *[[Houston]] at [[Houston Galleria|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, San Francisco|Union Square]] ==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. 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.<ref>[http://www.voanews.com/specialenglish/archive/2007-03/2007-03-22-voa1.cfm]</ref> 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 has introduced Forevermark diamonds to markets in [[China]], [[Hong Kong]], [[India]] and [[Japan]]. "Forevermark diamonds are natural, untreated, responsibly sourced, and cut and polished by a specially selected [[diamantaire]]."<ref>[http://www.debeersgroup.com/en/About-diamonds/Forevermark/]</ref> Forevermark diamonds have an icon and identification number inscribed on the table facet of the diamond. The inscription is 1/500 of the depth of a human hair is applied using De Beers technology developed in [[Maidenhead]], [[United Kingdom]], and [[Antwerp]], [[Belgium]].<ref>[http://www.debeersgroup.com/en/About-diamonds/Forevermark/]</ref> De Beers is also known for its television advertisements featuring silhouettes of people wearing diamonds, to the music of Palladio by [[Karl Jenkins]]. ==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 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.<ref>[ http://www.debeersgroup.com/en/Sales-and-distribution/Sights-and-Sightholders/]</ref>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.<ref>[http://www.debeersgroup.com/en/Sales-and-distribution/Best-Practice-Principles/]</ref> ==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.<ref name="conflictposition">De Beers Group ''[http://www.debeersgroup.com/debeersweb/Investing+in+the+Future/Ethics/Conflict+and+instability.htm De Beers Report to Stakeholders 2005/6 - Ethics, "Conflict and Instability"]'' De Beers Group, accessed online [[February 11]], [[2007]]</ref><ref>[http://www.debeersgroup.com/en/Global/FAQs/#Section755]</ref> 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 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]]<ref>[http://www.kimberleyprocess.com Kimberley Process]</ref> and its own Diamond Best Practice Principles.<ref>[http://www.debeersgroup.com/en/Sales-and-distribution/Best-Practice-Principles/]</ref> De Beers is active in the Kimberley Process, and also an ongoing participant in the Diamond Development Initiative (DDI).<ref>[http://www.ddiglobal.org Diamond Development Initiative (DDI)]</ref> 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 [[price fixing|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.<ref>[http://www.msnbc.msn.com/id/5431319/ De Beers pleads guilty in price fixing case - World business - MSNBC.com<!-- Bot generated title -->]</ref><ref>[http://www.washingtonpost.com/wp-dyn/articles/A48041-2004Jul13.html DeBeers Pleads to Price-Fixing (washingtonpost.com)<!-- Bot generated title -->]</ref> 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.<ref>[https://www.diamondsclassaction.com] </ref> 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. 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. 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 incorrectly referred to as a [[monopoly]] or [[cartel]], De Beers, via the Central Selling Organisation, at one time sold anywhere from 60-80% of the world's diamonds. This was done through a single channel marketing structure that was favoured by most in the diamond industry and producer countries for creating structure and stability. Currently the [[Diamond Trading Company]] sorts, values and sells approximately 40% of the world's rough diamonds by value. A range of factors contributed to change. 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. 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 [[Africa]]n 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]].<ref>[http://www.mine2mistress.com/index.shtml]</ref> ==Sustainability== De Beers publishes an annual "Report to Stakeholders" which is coordinated by Maplecroft Consultants in the United Kingdom. The Report covers De Beers approach, economics, ethics, employees, communities, environment, and a range of case studies, initiatives and related web sites. The first report was published in 2006.<ref>http://www.maplecroft.net/DBR/Movie/</ref> It was reviewed by Ethical Corporation magazine as "transparent but not entirely reader friendly."<ref> http://www.ethicalcorp.com/content.asp?ContentID=4949 </ref> The latest "Report to Society" which covers information and data from 2007 can be found on the company web site. ==External links== * [http://www.debeersgroup.com www.debeersgroup.com] De Beers Group official web site * [http://www.debeers.com www.debeers.com] De Beers Diamond Jewellery * [http://www.forevermark.com www.forevermark.com] Forevermark * [http://www.diamondfacts.org www.diamondfacts.org] * [http://www.ddiglobal.org www.ddiglobal.org] Diamond Development Initiative * [https://www.diamondsclassaction.com www.diamondsclassaction.com] diamondsclassaction.com * [https://mmsd.mms.nrcan.gc.ca/kimberleystats/publicstats.asp] KP rough diamond statistics site * [http://www.debeersgroup.com/en/Media-centre/Reports/] De Beers reports * [http://video.google.com/videoplay?docid=3637044704836809080&q=de+beers%2C+botswana%2C+diamonds&ei=Y9xYSK_9LJHgjAKBwqiDDw] De Beers, Diamonds and Botswana - video story * [http://www.debswana.com www.debswana.com] Debswana official web site * [http://www.namdeb.com www.namdeb.com] Namdeb official web site * [http://www.kimberleyprocess.com www.kimberleyprocess.com] Kimberley Process official web site * [http://www.mine2mistress.com 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]] ==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 [[Millennium Star|De Beers Millennium Collection]] from the Millennium Dome which took place in November 2000. * The 1971 [[James Bond]] film ''[[Diamonds Are Forever (film)|Diamonds Are Forever]]'' directly cites De Beers. <!-- summary please! --> * 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 ''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 (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. * 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." ==References== {{reflist|2}} {{refbegin}} * Epstein, Edward Jay (1982). [http://edwardjayepstein.com/diamond/prologue.htm "THE DIAMOND INVENTION"] (Complete book. An in-depth research into the history of De Beers as a company and the development of the modern diamond market) {{refend}} *[http://www.eurostardiamond.com/practices/diamond_best_practices.html "World Diamond Council Counsumer Confidence Leaflet - Source: Eurostar Diamonds International"] [[Category:Companies established in 1888]] [[Category:De Beers| ]] [[Category:Diamond mining companies]] [[Category:LVMH brands]] [[Category:Oppenheimer family]] [[da:De Beers]] [[de:De Beers]] [[es:De Beers]] [[fr:De Beers]] [[it:De Beers]] [[he:דה בירס]] [[hu:De Beers]] [[nl:De Beers]] [[ja:デビアス]] [[no:De Beers]] [[pt:De Beers]] [[ru:De Beers]] [[fi:De Beers]] [[sv:De Beers]] [[uk:De Beers]] [[zh:De Beers]]