ON MINES, MARKETS AND MANUFACTURERS

A major industry conference is coming up in October in Mumbai once again entitled ‘Mines to Market’, although why manufacturing doesn’t get a mention in the world’s biggest diamond manufacturing country is beyond me!

Since SoC was introduced the importance of manufacturing has tended to be rather played down unless it is linked to the beneficiation manufacturing agenda. Let me once again state quite clearly that it is absolutely legitimate and normal for African producers to seek to obtain the maximum benefits from the natural treasure that they are fortunate to own when genuine employment opportunities are created as well as viable value addition to their economies.

However, the Indian industry, which has had such a mutually successful relationship with the DTC over so many years has understandable concerns about the extent to which it can rely on the DTC in the future to support its huge manufacturing infrastructure. The same infrastructure which has sustained and supported both the DTC and indeed all producers for so long.

In business, as in life in general, it is genuine commitment as well as co-operation that creates enduring relationships. Gareth Penny has successfully over the years identified shared goals which the Indian industry has enthusiastically endorsed but industries and markets hate uncertainty and a lack of clear commitment from either side in a relationship can only result in confusion and often unintended consequences due to a lack of mutual confidence.

I make no apologies for being a firm defender of the sight system as being in the best interests of sightholders and producers in the long term. However, it is perhaps unsurprising that the Indian industry has formed rough procurement companies to try and leverage the fact that India is likely to remain the locomotive of diamond manufacturing for the foreseeable future. The lack of any clear narrative from the DTC or its producer partners as to how the DTC/India relationship is going to be sustained into the future leaves a communication void that others will fill.

The fact that some of the promoters of these alternative methods of obtaining rough are themselves sightholders seems to indicate a level of nervousness about the relationship and the future intentions of the DTC that does not bode well for the future health of the diamond industry as a whole. When such major buyers are so short on confidence it is hardly surprising that the rest of the trade takes a lead from them.

Surely it is absolutely in the interests of the DTC and Botswana to continue to engage with the Indian industry to protect their own interests as well as India’s. However the ambiguity surrounding the future of the DTC/Indian supply/sightholder relationship can only complicate matters for all and eventually marginalise the DTC’s up till now significant role in the world’s most important rough and polished consuming market.

Both Gareth and Varda can be in no doubt as to the importance of the Indian industry in repairing the considerable damage inflicted by the collapse of confidence. Gareth is being honoured in India by the Indian Sightholders, he also will I believe be addressing the conference next month. How appropriate it would be for him to take advantage of this opportunity to bring the rigour and transparency which he has become known for to a subject which really needs now to be properly and sensibly addressed in the interests of all.