WDC: Industry's future rests on ethics, transparency
May 10, 2007
By Susan Thea Posnock
Jerusalem, Israel—After a challenging year for the diamond industry that culminated with the release of
Blood Diamond, industry leaders gathered here for the fifth annual
World Diamond Council (WDC) meeting to reflect on the progress made and to acknowledge the continuing challenges in eradicating conflict diamonds and other consumer confidence issues.
"There can be no turning back to the days when we were seen to be turning a blind eye," noted WDC Chairman Eli Izhakoff, who presided over the daylong conference.
More than 100 participants convened to hear from speakers including De Beers Managing Director Gareth Penny, Alrosa President Sergey Vibornov, World Federation of Diamond Bourses President Ernie Blom, International Diamond Manufacturers Association President Jeffrey Fischer, World Jewellery Confederation President Gaetano Cavalieri and Global Witness spokesman Alex Yearsley.
De Beers' Penny noted how the consumer of the future will not tolerate products that are unethically sourced.
"The days of people buying things unknown, and the days of people not caring about where things come from are over," he said.
Among the issues he said the industry must continue to address are governance, in terms of transparency; ethics, in terms of money-laundering and child labor; communities, in terms of conflict diamonds, poverty and alluvial diamond mining; and the environment.
In looking forward, Penny said the industry must build on the momentum it has gained and be perceived as staying ahead of issues.
"The WDC must be truly representative of the industry, the people and the countries in which we conduct our business, and it must continue to be transparent and accountable to all those who participate in it," he noted.
Alrosa's Vibornov—who said the Russian diamond giant intends to become a public company in the near future—also noted the importance of transparency.
"The Kimberley Process is the first far-reaching step toward enhancing diamond-industry transparency," he said.
He raised concerns, however, regarding the diamond-cutting industry, corrupt governments and the narrow focus of the Kimberley Process.
"The Kimberley Process should be supplemented by activities focused on attaining the maximum level of transparency for diamond-mining companies and developing a set of minimum compliance requirements such as mining-history track, sales volume and possible market cap," he said. "The certification process should apply to everyone in the pipeline."
Representing the non-governmental organizations that have been instrumental in pressuring the industry, Yearsley commended the efforts made—including the Kimberley Process and its recent success in overseeing problems in Ghana—while warning of trouble spots on the horizon. These include the upcoming trial of former Liberian leader Charles Taylor and issues in Angola, the Central Republic of Congo, the Democratic Republic of Congo, Venezuela and Zimbabwe.
Industry leaders noted that they are already addressing the problems in Venezuela and would stay alert to other problem spots.
Yearsley and others also addressed the importance of improving conditions for alluvial miners. He said the industry must continue to support the Diamond Development Initiative, which currently has a pilot program in Tanzania.
"The peace and prosperity enjoyed in Botswana, Namibia and South Africa from diamonds must transfer to other diamond-producing countries in Africa that are less fortunate than them," he said.
The WDC meeting began last night with a cocktail reception. Attendees heard from Shimon Peres, Israel's deputy prime minister and minister of industry, trade and labor. It concludes tonight with a gala event featuring keynote speaker Benjamin Netanyahu, the leader of the Israeli Likud Party.
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