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Press release content from BusinessWire. The AP news staff was not involved in its creation.

Rapaport Group Says De Beers Destroying Transparency

June 19, 2018 GMT

LAS VEGAS--(BUSINESS WIRE)--Jun 19, 2018--The Rapaport Group has today issued a statement saying that De Beers is destroying transparency in the diamond industry by not allowing its clients to disclose the source of their diamonds. The full text of the statement is available here.

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The statement claims that “all De Beers’ rough diamonds are now opaque. That’s 42% of the world’s legitimate diamond production in 2017, and $14.993 billion of rough diamonds from 2015 through 2017.”

The statement cites the De Beers “Sightholder Signature License Agreement Clause 3.6.6: ‘ you will not represent that any particular diamond or diamonds are sourced, or originate, from us or any member of the De Beers Group except with our prior written consent.’” It also refers to a De Beers letter that states, “In relation to programmes such as GIA’s ‘Mine to Market’ (M2M), or other downstream entities’ initiatives seeking to make provenance claims. We have declined all such requests.”

Martin Rapaport, Chairman of the Rapaport Group, said, “De Beers is extending its market power from rough to polished markets through exclusive polished distribution networks such as Forevermark. They are making it impossible for independent third parties to source-certify their diamonds, thereby disabling legitimate diamond distribution systems. De Beers is using its market power to restrain competition in the market for legitimate source-certified polished diamonds.…

“With extensive human suffering in developing countries such as Zimbabwe, the Congo and others, as well as billions of dollars of diamonds not subject to human rights, AML and CTF compliance, the Rapaport Group begs De Beers to do the right thing and allow its clients to disclose the legitimacy of their diamonds.”

The Rapaport statement calls on De Beers to immediately cancel its restrictions on disclosing the legitimate source of diamonds. It asks all responsible members of the diamond industry to contact De Beers CEO Bruce Cleaver and request that De Beers end its restrictions on source disclosure.

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About the Rapaport Group:

The Rapaport Group is a global provider of added-value services that support the development of ethical, transparent, competitive and efficient diamond and jewelry markets. Established in 1978, the Rapaport Price List is the primary source of diamond price and market information. Group activities include Rapaport Information Services, Rapaport Magazine and Diamonds.net, providing research, analysis and news; RapNet – the world’s largest diamond trading network; Rapaport Laboratory Services, providing GIA gemological services in India, Belgium and Israel; and Rapaport Trading and Auction Services, specializing in recycled diamonds and jewelry. The Group supports over 20,000 clients in 121 countries and has offices in New York, Las Vegas, Antwerp, Ramat Gan, Mumbai, Surat, Dubai and Hong Kong. Additional information is available at www.diamonds.net.

View source version on businesswire.com:https://www.businesswire.com/news/home/20180619006200/en/

CONTACT: Rapaport

U.S.:

Sherri Hendricks, +1-702-893-9400

or

International:

Alex Shine, +1-718-878-5138

media@diamonds.net

KEYWORD: UNITED STATES NORTH AMERICA NEVADA NEW YORK

INDUSTRY KEYWORD: LUXURY NATURAL RESOURCES MINING/MINERALS RETAIL FASHION BRIDAL

SOURCE: The Rapaport Group

Copyright Business Wire 2018.

PUB: 06/19/2018 01:46 PM/DISC: 06/19/2018 01:46 PM

http://www.businesswire.com/news/home/20180619006200/en