Diamdel: New CPO Won’t Affect Local Supplies

Following its announcement about forming a central processing operation in Israel, Diamdel says it remains deeply committed to serving secondary market needs. The move, says Diamdel spokesperson James Nicholson, has no impact on the DTC’s plans to aggregate rough diamonds in Botswana.

 Diamdel recently announced it would be forming a Central Processing Office (CPO) in Israel, following a strategic assessment on how it can better meet the global needs of its clients. The CPO is expected to become operational in January 2007, sorting over $400 million worth of rough diamonds.

Nicholson told IDEX Online that the CPO “will not, under any circumstances, affect the company’s dedication to satisfying, where possible, client requirements in other diamond centers be they Antwerp, Tel Aviv, Hong Kong, or other.” All Diamdel offices will remain fully operational after the launch, he added.

Diamdel has been operating in Antwerp, for example, since 1964, and supplied approximately $200 million of rough to about 100 clients in 2005. The company expects this year’s supply to be very similar.

“We are, and will remain, deeply committed to serving the needs of many small, visionary and developing businesses, as well as more well-established operations within the secondary market,” he promises

By extension, Nicholson stifles any hope among Israelis that rough supply to Israel will increase as a result of the decision saying, “the location of the CPO will not impact the level of Diamdel supply offered to the Israeli market.”

“The decision to create the CPO will enable, for example, client facing employees such as Diamdel's Diamond Sales Executives across the globe to dedicate yet more time to face to face client engagement in future.”

Once the CPO is operational, all rough purchased from the DTC (which constitutes the vast majority of Diamdel's total intake) will be shipped directly to Israel and prepared for sale.

De Beers at large seems to be focused on Africa and how they are perceived there by authorities. So while Nicholson notes Diamdel’s commitment to aiding local cutting and polishing operations “in every country”, he also mentions the new African joint venture, DTC Botswana, equally held by De Beers and the government.

“I want to state categorically that Diamdel’s Central Processing Operation in Israel has no connection with, and therefore no impact whatsoever on, the DTC’s plans to aggregate rough diamonds in Botswana. It is De Beers’ intention, and has been agreed with the Government of Botswana, that aggregation will move from London to Botswana. This intention and agreement have not changed.”