The diamonds industry was threatened after the situation that happened in India. Two leading firms have been involved in a huge investment scam.
That happened last winter when the Diamond Producers Association (DPA), which contains the biggest seven global diamond mining corporations started their works in India. Its seven firms include - ALROSA, De Beers, Dominion Diamond, Gem Diamonds, Lucara Diamond, Petra Diamonds and Rio Tinto. All together they represent more than 75% of the world's diamond generation.
Jean-Marc Lieberherr, Chief Executive Officer and one of the co-founders of the Diamond Producers Association (DPA) have responded to some of the questions concerning the situation in India during the interview to the Business Todays.
Fragment from the conversation:
DPA represents seven of the most significant diamond mining organizations. What is the global production at that moment and what are the plans for the future?
The worldwide production of diamonds reaches 120 million carats. Next year, with all the investments we are planning to increase the amount to 130 million carats. Then it is planned to start a slow decline that will stabilize closer to approximately 100 million carats. It will take years to develop new projects, for example, to only find new mine can take up to ten years and another ten to construct it.
Indicators of Today’s Worldwide Market Share for Diamonds
1- US - 47%
2- China - 16%
3- India - 7%
Local Diamond entrance (% of people that have at least one piece of diamond jewellery)
1- US - 70%
2- China - 20%
3- India - 10%
Which are the leading diamond mining markets in the world? Are the means depleting or are there new mines being examined and developed?
At the moment, there are approximately 50 operating diamonds mines in the world. According to the last year researches, there were defined three biggest mines per the amount of the produced carats.
Top 3 diamond manufacturing nations involved:
1- Argyle mine in Australia;
2- Jwaneng mine in Botswana;
3- Jubilee mine in Russia.
It is quite hard to discover new mines. The new generation of diamonds will be developed this year in Canada's Northwest Territories. Besides, more projects will be started in Russia, Canada, Botswana, and South Africa. We are waiting for the peak production, and the long-term trend is one of natural production decline. As a result, the diamonds will become even more precious and worthwhile as demand grows.
How come, that Surat has become the biggest and most meaningful hub, responsible for the polishing and cutting the diamonds?
The Argyle mine in Australia was discovered in 1980s and is the most prominent diamond producing place in the world. However, an essential region in the production of a small diamonds has become a state in western India - Gujarat. Nowadays, it is not only India's "smart city", but also the powerhouse and the independent trading core, that has its own laws and rights. Even though there are some of the phases concerning the process of cutting a diamond, that can be operated on a specialized machine. Nothing is surprising, that the natives in India are the most specialized and can polish and cut diamonds much better than any technical innovations. That is why more than a million Indian people are working in the local diamond market.
India is the next biggest worldwide country in the destruction of gold. Why the desire for diamonds is much less and how do you plan to promote the diamond sales there?
In India, people estimate the diamonds as the country's cultural heritage. That is the main reason, why their rates of the supplied global diamonds jewellery sales reach only 7%. And this result seems to be impossible with the fact, that in India are cut and polished almost 90% of the world diamonds. After several investigations, we have noticed the potential in the possible growth of the diamonds sales in this country. Besides, local designers have excellent ideas and plans for creating various gold goods in combination with the diamonds.
Today, the global diamond sales show such results. The leader is the United States with the 70% after goes China with 20% and on the third place in India with 7%. We believe in the potential if India and in the further consumer's interest in this country. That is why starting from this year we are going invest more funds in Indian diamond marketing.
We are planning to change the attitude of the nation and emphasize the original value of the diamonds. It is vital to explain via marketing the emotional benefit of these gorgeous stones, that can become not only the countries heritage but the symbol of love for everyone. Moreover, diamonds all over the worlds have always been gifted with the engagement ring during the proposal. Therefore, as the as the GSDiamonds and jewellery culture are genetically robust in India, we trust in further positive changes. Basically, this is the answer, why we decided to invest in the development of India marketing.