Diamond Miners Form Organization to Support Sector Development

Rapaport reported that major diamond companies have created an organization aimed at supporting development in the diamond sector. That support will include engaging in category marketing.

As quoted in the market news:

ALROSA, De Beers, Rio Tinto, Dominion Diamond Corporation, Lucara Diamond Corporation, Petra Diamonds Ltd. and Gem Diamonds will form part of the Diamond Producers Association (DPA), the companies announced in a joint statement on Wednesday.

The companies initially met in March to discuss the idea. The move follows calls from within the industry to create a body that will fund a campaign to drive consumer demand, after De Beers narrowed its marketing spending to just focus on its own branded products.

The DPA will have an initial budget of $6 million, funded by the seven member companies and the funds will enable the group to start operating effectively as soon as an executive director has been recruited. The budget will be reviewed annually, based on the activity plan submitted to the board for approval, the statement noted.

According to the DPA, its mandate will include:

• Maintaining and enhancing consumer demand for and confidence in diamonds including joint category marketing initiatives;
• Providing a reliable source of industry information, including trade and consumer research;
• Acting as the unified voice of the diamond producers, when required and/or appropriate, with industry and non-industry forums/organizations;
• Communicating the role and contribution of diamond producers to the diamond sector and broader society; and
• Sharing best practices in health and safety, license to operate, supply chain integrity and environment management.

Click here to read the full Rapaport report.