Which company had full or partial ownership of many mines, and bought rough from others through purchasing contracts?

Which company had full or partial ownership of many mines, and bought rough from others through purchasing contracts?

• A. Rio Tinto
• B. Alrosa
• C. De Beers
• D. Anglo American

Answer: (C)

Owning multiple mines while also controlling supply by purchasing rough from other producers is a hallmark of a vertically integrated diamond player that can steer the market. De Beers built a vast portfolio of mines and ore sources, often owning or controlling significant shares, and it complemented that with long-term purchasing contracts to buy rough from many other producers. This combination allowed De Beers to influence the flow of rough diamonds into its distribution system, helping to stabilize or modulate supply and price. The other companies, while major players, did not historically combine this breadth of mine ownership with a centralized, contract-based rough purchasing network to the same extent.

Owning multiple mines while also controlling supply by purchasing rough from other producers is a hallmark of a vertically integrated diamond player that can steer the market. De Beers built a vast portfolio of mines and ore sources, often owning or controlling significant shares, and it complemented that with long-term purchasing contracts to buy rough from many other producers. This combination allowed De Beers to influence the flow of rough diamonds into its distribution system, helping to stabilize or modulate supply and price. The other companies, while major players, did not historically combine this breadth of mine ownership with a centralized, contract-based rough purchasing network to the same extent.