【Antwerp, Bel】When the World’s Largest Diamond Dealer Plays a “Double Game” and Abandons Antwerp: “These People Have No Ethics”

by

Editor’s Note

This article examines how Russian diamonds continue to reach the U.S. market despite sanctions, and explores the historic dominance of De Beers within the industry.

<p>Le Syndicat national des mineurs sud-africains (NUM) a appelé vendredi à la grève chez le géant sud-africain du diamant De Beers, faute d’être parvenu à un accord dans les négociations salariales.</p> <p>” style=”max-width:100%;height:auto;”></p></div> <div style=A Heated Rivalry

Despite sanctions, Russian diamonds continue to arrive in the world’s top consumer country, the United States. Their office is discreet, located in the heart of Antwerp’s diamond district. Yet rarely has a company held such sway over an industry. For nearly 140 years, De Beers has dominated the diamond sector. Founded in 1888 in South Africa by two Boers, the De Beer brothers, the company held a near-complete monopoly on precious stones, from extraction to sale, until the early 2000s. The South Africans operated as

“a veritable cartel”

by setting prices and the industry’s rules.

Maintaining Significant Power

While competition has since emerged, De Beers retains

“very significant”

power, as explained by Hans Merket, a researcher for IPIS (International Peace Information Service).

“Every time there is a crisis, they impose their solution, and it always serves their interests.”

When the South African company was implicated in the 1990s in African “blood diamond” conflicts, De Beers was instrumental in establishing the Kimberley Process. Introduced in 2003, this process is supposed to ban the sale of any diamond from a

“conflict zone.”

A system that is far from perfect.

“Some things are positive, but there are major gaps, particularly in controls and diamond certification,”

continues Mr. Merket.

Flaws in the Kimberley Process

According to the Kimberley Process, Russian diamonds are thus certified as “clean.”

“A consumer who wants complete transparency about the origin of the stones they buy risks being deceived. This process does not provide them with the assurance that they are not buying conflict diamonds. That’s why more and more Western countries are questioning Kimberley.”

Hence the idea among the latter to impose a more reliable traceability system, based on blockchain or even laser marking of each stone, to track sanctioned Russian diamonds.

De Beers Caught Off Guard

“De Beers was taken by surprise by this proposal. They have always defined what traceability was, and they did not appreciate governments interfering in these discussions. It did not suit them at all.”

Challenging Decades of Practice

Even though De Beers does not operate any mines in Russia, the new “G7 system” also challenges the way South African diamond dealers have operated for decades.

“De Beers never gives the exact origin of the African country where they extract their diamonds,”

insists Mr. Merket.

“The precious stones are all gathered and mixed in Botswana, a country with which they have had very complicated negotiations to be able to exploit the mines.”

The G7-style traceability process prohibits this kind of practice: each diamond must now be traced from the mine where it was extracted.

“De Beers is afraid that other African countries where it operates, such as Namibia and South Africa, will now know the exact quantity of diamonds the company has taken from their soil. And consequently demand more money.”

Accusations of Sabotage and Double Talk

While De Beers explains to La Libre that it

“fully supports”

this G7 initiative, the company would be

“sabotaging”

it behind the scenes, according to various experts. Many in Antwerp denounce the South Africans’

“double talk.”
“They played a dirty role, these people have no ethics,”

grumbles an Antwerp resident active in the sector.

“De Beers quickly sent emails to its sellers explaining that it was not Europe, and even less Belgium, that would decide on diamond traceability,”

reveals Hans Merket.

“They also conducted very powerful lobbying in the United States, notably by hiring a former senior UK diplomat, so that the country would not apply the G7 sanctions. And it was very effective.”

Antwerp Feels Abandoned

With Trump coming to power on the other side of the Atlantic, the chances of this new traceability system being established within the G7 are shrinking dramatically.

“If the discussions fail, De Beers will have won again by imposing its law,”

according to Mr. Merket. In Antwerp, many traders feel

“abandoned”

by the diamond giant.

“But the Antwerp metropolis must hold firm and above all not backtrack on this transparency,”

insists the researcher.

Diamant.
Full article: View original |
⏰ Published on: February 22, 2025