Diamond FlashesBeyond magnificence and splendor,
world of diamonds evolves on stirred grounds. When
stake is so important, interests collide. But technology develops following its onward course. Here are some interesting off-stage events in
diamond industry and innovations in technology.
De Beers sued by head of
Diamond Bourse
Derek Parsons,
president of
Diamond Bourse of
Southeast United States has filed a lawsuit against De Beers, on
charge of
company's disregard of American competition law. Their Supplier of Choice policy puts
American dealers at a disadvantage. The suit was not launched on behalf of
Miami bourse but on behalf of diamond dealers in America, condemning
criteria on which De Beers makes
sales – they would sell only to their sightholders, discouraging
non-sightholders and keeping prices artificially high at a non-competitive level.
Diamond mining expands
De Beers holds control of only 50% of
roughs market
Diamond rising prices have stimulated
exploration and mining in more countries such as Canada, Russia, Angola, India, Brazil. Nevertheless, about 40% of diamonds still come from Botswana and South Africa. De Beers' control on
rough diamond market was declared to have decreased from 70% to about 50%. Canada, Russia and West and Central Africa are considered by specialists an important potential diamond source. India and Brazil are prospected by geologists also due to
fact that they are known to have been a diamond source in
past.
The largest diamond reserve of Africa lives in extreme poverty
Although
fourth largest producer in
world by value and
holder of
largest diamond reserves in Africa. Angola's per capita gross national income GNI is estimated at $650 per annum. People' s main means of subsistence is agriculture. The diamond sector has been seriously affected by
long war and by gem smuggling. Yet it still represents a very important potential driver of economic development. Since 2002, when
conflict between
government and
UNITA rebel movement ended, developing
sector has become a national priority and
government has already made changes to
diamond sector regulations. Serious redevelopment and investment is needed in this area. At present, artisanal mining operates in Angola and it brings very little economic benefit to local communities.
Increasing conflict in Russia between diamond cutters and miners
The Russian company Alrosa is
largest diamond miner in
world outside De Beers. Diamond cutters accuse Alrosa of favoring exports and providing larger stones for
foreign market and offering only small-sized diamonds to
internal market. On
other hand, Alrosa says that cutters cannot be allowed to pick
assortment of size they want. The result is that Russian cutters are buying million dollars in rough stones from South Africa each month. Russian manufacturers had a production of $1.1 billion in 2003, and Alrosa is estimated to produce around $2 billion worth rough diamonds this year.