Key Industry Figures Address Topical Issues at the First Joint Session of WFDB and IDMA

The first Joint Session of the WFDB and IDMA was addressed by a number of key industry figures, who touched upon the challenges faced by the largest diamond markets, relocation of DTC to Botswana, prospects of development of Kimberley Process and diamond industry in southern Africa, and some other issues.
Avi Paz, WFDB president, expressed that the US market remains a difficult trading area at this stage and that the instability of the global market remains a concern. He also noted how the present currency problems in the local Indian market have had a negative effect on the diamond industry, but sincerely thanked the banking industry for the support they have given and emphasized that they are considered valued partners. Paz continued by describing the diamond industry as very resilient, which has stood it in good steed through difficult times and made the industry adaptable to changing conditions.
DTC CEO Varda Shine noted in her speech that despite a recent weakening at the Chinese market is was still to post double-digit growth of diamond sales this year.
IDMA president Moti Ganz drew attention to shrinking margins for manufacturers due to various responsibilities they were taking on without compensation during his presentation, issues previously taken care of by other arms of the industry that has been done away with due to budget restraints. The thread of synthetic diamonds was highlighted as these provided higher margins and could potentially fight for the space currently occupied by diamonds. The constant and regular supply of rough remains essential to ensure stable growth for the industry. Ganz called on the industry to unite and fight towards a common goal and emphasized the retention of margins in the diamond trade as these are vital in ensuring that the trade remains a profitable one and has the ability to expand in the future.
The South African Minister of Mineral Resources, Susan Shabangu, a keynote speaker at the Congress, expressed how African countries benefited from the KP as this allowed them to trade in diamonds to an international market while complying with all legislation.  She further voiced her conviction that producing countries must share in wealth creation and encouraged African countries to take ownership of the KP process and become part of it in order to extract maximum benefit from it. Shabangu stressed the importance of beneficiation and her wish for this to be implemented in more producing countries in order to create employment and skills development. The Minister explained that the South African government had created the State Diamond Trader in the country in order to ensure the supply of rough diamonds to small industry players and in so doing ensuring development and the survival of small entities.
Gillian Milovanovic, ambassador from the US State Department and current chair of the Kimberley Process said that while the KP has been very successful, change must not be feared and that a new definition of conflict diamonds must be developed. She called for positive ideas and advice from Congress delegates in order to develop the way forward.
Varda Shine, CEO of the DTC, also addressed delegates and stated that to date it is estimated that five billion carats of diamonds have been introduced to the market and reminded attendees that the market must be consumer driven and based on consumer demands. She continued by stressing the three points which are critical in order to grow the market: securing supply, maintaining consumer confidence and stimulating consumer demand.
Shine highlighted an agreement signed in Botswana which secures a supply chain for 10 years, supports investment in South Africa for underground mining research, assists with beneficiation and the delivery of sustainable benefits to southern Africa.

Dasha Platonova, Editor in Chief of the Asian Bureau, Rough&Polished