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Article: Smashing the diamond cartel: Canadian gems and expertise have broken De Beers' grip on the world market.
- Article from:
- The Report Newsmagazine
- Article date:
- August 14, 2000
- Author:
CopyrightCOPYRIGHT 2000 United Western Communications. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Canadian miners have played a key part--arguably the decisive role--in shattering the century-old diamond cartel operated by De Beers Consolidated Mines. Until now, the South African company has shored up prices by its willingness to absorb the entire world supply of higher-quality stones. In mid-July, however, De Beers announced that its Central Selling Organization will no longer act as the "buyer of last resort." Its stockpile has gotten unaffordably huge, yet more diamonds keep pouring into the market, says Al Levinson, a University of Calgary geologist. This international authority explains that Canada's impact on De Beers has been double-barreled:
* The ...