by Doug Ashbury
Northern News Services

NNSL (Apr 15/98) - Where there are diamonds, there is De Beers.

For decades, De Beers has counted itself guardian of these precious pure, crystallized carbon gems.

De Beers, the largest diamond-mining company in the world, holds a major stake in Anglo American Corporation.

Anglo American, which in turn owns a big part of De Beers, is a major South African mining finance firm. Founded in 1917, Anglo American has been key to the development of South Africa's mining and industrial economy. De Beers produces half the world's gem-quality stones from its mines in South Africa and its partnerships with the governments of Namibia, Botswana and Tanzania.

The company operates the Jwaneng and Orapa mine in Namibia, Namdeb on the Namibian coast and Finsch mine in South Africa.

Also in South Africa is the Premier Mine, famous for the 3,106-carat Cullinan stone, the 3,539-carat Premier Rose and the 599-carat Centenary stone.

In all, De Beers operates 18 diamond mines.

In Canada, De Beers recently opened an office in Vancouver aimed at investing in the merging Canadian diamond industry.

Monopros Ltd., a wholly-owned De Beers company, has been exploring in the NWT for diamonds for several years. Monopros Ltd. divisional manager-west Todd McKinlay is NWT Chamber of Mines vice-president.

The Vancouver office is headed up by De Beers Canada Corporation managing director George Burne.

Before moving to Vancouver, Burne was a member of the London executive of De Beers' Central Selling Organization. He was appointed to the board of De Beers Consolidated Mines Ltd. in 1993 and to the board of De Beers Centenary AG in 1994.

To market diamonds, De Beers created the CSO in 1934.

To promote diamonds, De Beers spends millions each year on an advertising campaign covering 34 countries. The "diamond is forever" slogan is 50 years old. De Beers even had its "two months salary" slogan scripted into an episode of Baywatch, the most watched TV show on the planet.

De Beers says the CSO provides "price stability" to the market by controlling the supply. De Beers also buys up diamonds on the open market, stockpiling the stones until the market can handle them, if necessary. This keeps the price higher.

Based in London, the CSO sorts, values and sells most of the world's rough diamonds. Stones are sorted into over 14,000 categories for sale.

In a recent De Beers booklet, former De Beers chairman Harry Oppenheimer said: "Whether this measure of control amounts to a monopoly I would not know, but if it does, it is certainly a monopoly of a most unusual kind. There is no one more concerned with diamonds, whether as producer, dealer, cutter, jeweller or customer, who does not benefit from it. It protects not only the shareholders of diamond companies, but also the miners they employ and the communities that are dependent on their operations."

Oppenheimer retired as De Beers chairman in 1994 after 60 years on the company's board of directors. Oppenheimer had succeeded his father Sir Ernest Oppenheimer as chairman.

But what is stabilizing the market to some is against the law to others.

De Beers is not allowed into the U.S. because its "price stability" tactics violate U.S. federal anti-trust laws.

When it comes to diamond jewelry sales in this country, it is estimated Canadians bought just under $1 billion worth of diamond jewelry last year.

Last year's 1997 diamond jewelry sales are estimated at $995 million, up about 20 per cent form 1996.

Toronto-based Canadian Jewellers Association estimates Canadians bought $1.33 million worth of all types of jewelry in 1997, up from $1.1 million in 1996.