Mining Weekly

African mines represent 65% of the world’s diamonds; hence, Africa is a senior partner in the global diamond industry and, based on this, there are opportunities to capitalise on the resources for countries such as Zimbabwe and other diamond-producing countries.

Nonprofit organisation World Federation of Diamond Bourses (WFDB) president Ernie Blom delivered a speech at the Zimbabwe conference in November stressing the key role African mining countries play as producers of diamonds on the world stage.

Blom referred to the medium- and long-term shortage of diamonds on a global scale as demand outstripped supply.

Further, he stressed the importance of investing revenues from diamonds in these countries back into the industry, as this is a “great opportunity for African countries to invest profits in developing a value-added sector”.

Blom pointed out that it was a “new dawn” for African producers and, opportunities created by the diamond industry could assist in poverty relief, create employment opportunities, create infrastructure and develop skills locally.

“This would mean that countries could add value to raw material without only exporting rough,” he added.

However, he cautioned that being part of a world diamond industry also meant that mining should be done in a responsible manner, while adhering to international practices such as the Kimberley Process (KP) and many other regulations that govern the sector.

The Africa-based diamond mining countries were invited by Blom to join the WFDB in the newly created category, Nation Affiliated Member, and, as such, became part of the global diamond community, giving them a voice on the world stage.

Blom spoke about the WFDB’s intentions to expand membership through different routes to ensure all elements of the value chain were represented at the federation.

Further, he provided feedback from a recent WFDB executive committee meeting that emphasised the organisation’s commitment to the internal diamond ecosystem of banking, profitability, compliance, certificates, shipping and disciplinary measures.

The WFDB’s commitment to the KP through its representative agency, the World Diamond Council, was also stressed.

“We are facing a serious threat from other luxury goods and the industry needs to stand together to ensure that it retains and grows its share of the luxury spend,” said Blom.

He concluded that the WFDB was committed to this, as could be seen in its development of generic advertising and plans for the World Diamond Mark.