The cartel isn't for ever
An Israeli tycoon is helping to force De Beers to surrender its control of the world's diamond market
HOW much turmoil can the diamond industry sustain without shattering? On July 13th in an Ohio court De Beers, the world's largest producer of rough stones, finally pleaded guilty to charges of price-fixing of industrial diamonds and agreed to pay a $10m fine, thereby ending a 60-year-long impasse. De Beers executives are at last free to visit and work directly in the largest diamond market, America.
A few days earlier, on July 9th, the first case of successful industry self-regulation against trade in so-called “conflict diamonds” took place when Congo-Brazzaville was punished for failing to prove the source of its diamond exports. And on June 28th Lev Leviev, an arch-rival of De Beers, opened Africa's biggest diamond-polishing factory in Namibia.
This article appeared in the Special report section of the print edition under the headline "The cartel isn't for ever"
From the July 17th 2004 edition
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