Diamond Trading Company (DTC)
PostBy Avi Paz Group At 05.09.2010
Diamond Trading Company might sound like a modest name for a concern that deals – in one stage or another – with approximately 75% of the rough diamonds in the world, but that is exactly what the DTC – the arm of De Beers that handles sales and distribution of rough diamonds – does.
Originally founded in 1934 as a standalone company within De Beers, the DTC remained such until 2004. Today, it owns diamond mining operations all over the world, including South Africa (Diamond Trading Company South Africa) and Canada, and is a 50-50 partner with the governments of Botswana (DTCB) and Namibia (NDTC) in those countries' diamond mining industries.
DTC sorters work in headquarters in London, South Africa, and Botswana to sort diamonds recovered from De Beers mines, which are then sold to the DTC's 79 Sightholder companies.
The DTC demands that all its clients work in accordance with the Best Practice Principles put forth by De Beers, which address three major issues in diamond sector business conduct: business responsibility, social responsibility, and environmental responsibility. The DTC says it recognizes land and water resources, which are necessarily consumed in the process of mining, as "national assets aligned in importance to diamonds" and supports systematic work all along the diamond chain to minimize environmental damage.
In addition, the DTC advocates "proactive response through innovation to address and manage issues material to stakeholders."
The DTC's platform also includes beneficiation – the idea of working with diamond-producing governments to see that the diamond mining industry benefits the local population. Examples of beneficiation range from job creation to skills development and the development of local market activity.
In line with the idea that the diamond industry should benefit residents of diamond producing nations, DTC Sightholders, or clients, are required to fully commit to the Kimberley Process, an international mechanism set up to prevent illegal trade in conflict diamonds.
