WFDB and DTC Meet To Discuss Rough Supply

The DTC confirmed today that Gary Ralfe, managing director of De Beers, intends to increase rough supply to the secondary market in 2004 through diamdel, as reported first in IDEX Online last week.

“It is De Beers' hope and intention in 2004 to increase the DTC's supply of rough diamonds to Diamdel in support of the 'secondary' market, remaining within the framework agreed with the European Commission,” Ralfe said today in a joint statement released today by DTC and the World Federation of Diamond Bourses.

A delegation from the WFDB, headed by president Shmuel Schnitzer, met with senior executives of the DTC, headed by Gary Ralfe, on Wednesday November 12.

At the meeting, the WFDB delegation stated that it is eager to see the supply of rough to the secondary market increase next year through Diamdel’s offices in the various diamond manufacturing centers. The WFDB says it fully endorsed the Diamdel system of operation. The DTC representatives at the meeting indicated that the level of sales by Diamdel would be reviewed accordingly.

Ralfe stated at the meeting that DTC would be taking constructive steps to support the secondary rough diamond market. "It is important to note that all the rough diamonds that the DTC sells to Diamdel - up to $500 million this year - are sold on to a wide variety of companies in the various cutting centers. Diamdel's policy, however, is not to sell to DTC Sightholders”.

“We are very pleased to have a positive and constructive dialogue with the WFDB, which represents 13,000 members of diamond bourses worldwide."

The two parties agreed that the DTC and the WFDB Promotional and Trade Committees would work together, looking at ways to improve non-Sightholders' awareness of the Supplier of Choice initiative.

Schnitzer expressed the federation's wish to continue its dialogue with the DTC. “The diamond world has always been and will always remain an international family. It is vital, in the name of co-operation and understanding, that we retain our communications, as an organization, with the major player in the industry.

“We, the representatives of the WFDB, have an obligation to serve our members. In this respect my fellow presidents and I have maintained a constructive and open dialogue with the DTC here today, from which we will all move forward together to create an even more successful industry," he said.