Diamond Trading Company (DTC) sightholders gathered in London in early September for the annual DTC Business Excellence Seminar (BES), held at the Mandarin Oriental Hotel. The seminar, titled “Operating in the New Normal,” was hosted by the DTC’s chief executive officer (CEO), Varda Shine. She noted that the global economy is still in a fragile state and may well become more volatile than before; although interest rates are likely to remain low, the world is deleveraging and borrowing too heavily in the current climate to chase market share and this could have negative repercussions. Shine also said that corporate social responsibility (CSR) is a necessity, not an optional extra, and that as the diamond industry seeks opportunities in the “new normal” economy, its emerging markets — both geographical and virtual — are likely to become increasingly important. Shine added that because neuroscience has shown that emotional — rather than rational — decision-making plays the biggest role in consumers’ purchase decisions, the industry’s marketing approach should reflect this tendency.
De Beers Settlement Case to Be Reheard
The Diamond Manufacturers & Importers Association of America (DMIA), through its attorneys Boni & Zack, Kohn, Swift & Graf and Ben Kinzler, its general counsel, filed an amicus brief on behalf of its membership in the $250 million De Beers settlement case. After the brief was filed, the Third Circuit Court entered an order permitting the DMIA to participate as an amicus. Upon its receipt of the filing, the court vacated the original opinion that disapproved the settlement with De Beers and set the matter for a rehearing en banc before all 15 judges of the court.
Zimbabwe Court Overturns Marange Ruling
The Zimbabwe High Court overturned a judgment that had granted mining rights at the Marange fields to African Consolidated Resources (ACR), the company reported. ACR said it would immediately appeal the ruling, adding that its appeal should have the effect of suspending the judgment. Justice Charles Hungwe ruled that ACR had concealed important information in the original case, namely that its subsidiaries were not yet registered at the time it obtained the mining rights, according to the Zimbabwe Guardian.
ACR bought the Marange project from De Beers in March 2006, but was evicted in October of that year by the government, which took control of the fields through the state-owned Zimbabwe Mining Development Corporation (ZMDC). After ACR appealed its governmental eviction, the High Court confirmed the validity of its mining claims in September 2009. However, ZMDC proceeded with its operations at the mine, forging partnerships with Mbada Diamonds and Canadile Resources as operators of the mine.
Now Canadile has begun constructing a multimillion dollar cutting and polishing center in the country, officials said. The Zimbabwe Diamond Technology Centre is due to become operational within six months. Faber Chidarikire, the governor of the Mashonaland West province, said the diamond industry would ameliorate the country’s economic woes.
The Zimbabwe government sold approximately 500,000 carats of diamonds at its second tender of goods from the Marange mine, held between September 9 and September 13, sources close to the sale told Rapaport News. The diamonds were sold to six clients, including one from Antwerp and others from India and Dubai. A total of approximately 1.6 million carats of diamonds have been officially sold since the Kimberley Process (KP) approved the sale and exportation of diamonds from the Marange mine in July. The next sale is expected to take place in October, but an exact date still has yet to be agreed upon by the KP.
- Additional reporting provided by Acquire Media
Article from the Rapaport Magazine - October 2010. To subscribe click here.