The diamond industry is strategizing to establish a $65 million annual fund to support category marketing for natural diamonds. This move aims to bridge the gap left by Alrosa’s departure from the Natural Diamond Council (NDC) in 2022, following the onset of the Ukraine war.
A Collaborative Effort
The Antwerp World Diamond Centre (AWDC), Dubai Multi Commodities Centre (DMCC), and India’s Gem & Jewellery Export Promotion Council (GJEPC) discussed the plan during the Dubai Diamond Conference. Together, they committed to finding a sustainable solution, according to NDC CEO David Kellie.
If implemented, the NDC’s budget would grow from $35 million to $100 million annually, restoring its pre-Alrosa levels. Current funding comes from De Beers, other mining companies, and select trade partners.
Proposed Funding Mechanism
The plan suggests collecting a fraction of rough diamond imports as a levy to fund marketing efforts. While details are still being finalized, GJEPC’s existing mechanism of taking 0.02% of rough imports could serve as a model. Some insiders suggest a potential levy of 0.05%.
Kellie emphasized that contributions should be “fair” and “affordable” while ensuring diverse representation on the NDC board. This broader participation would make the NDC more representative of the industry as a whole.
“A small percentage from many stakeholders is more sustainable than relying on a few major contributors,” Kellie explained.
Industry Cooperation on Display
The initiative reflects a shift in the competitive dynamics between major diamond hubs like Dubai and Antwerp. “Traditionally, Dubai and Antwerp have seen each other as competitors,” said Kellie. “But now they’re collaborating to tackle a shared challenge, benefiting the entire industry.”
What’s Next?
The proposal will now be discussed with stakeholders, with further deliberations planned at the upcoming Facets 2024 Conference in Antwerp. The goal is to launch the system in the first quarter of 2025.
As the industry faces increasing challenges, this united effort signals a pivotal step toward revitalizing consumer demand for natural diamonds.