Penny Restates DTC Commitment of “Up To $500 Million”

DTC Managing Director Gareth Penny reiterated DTC’s commitment to supply the secondary market with up to $500 million worth of rough diamonds through Diamdel this year in a letter to World Federation of Diamond Bourses’ President Shmuel Schnitzer.

The letter came after Schnitzer asked Penny why DTC officials had reportedly denied that the DTC had reiterated its commitment when they participated in the WFDB Executive Committee meeting on April 30.

Schnitzer was referring to remarks appearing in industry news outlets implying that the supply of rough diamonds to Diamdel had not been discussed at the meeting. Schnitzer added in his letter that the issue was discussed, in the presence of the DTC representatives.

The hot issue, and the ensuing back and forth, started when during a heated WFDB meeting in Sun City, many criticized the DTC’s Supplier of Choice plan, fearing it will harm medium and small businesses.

Penny promised at the meeting to supply the secondary market with $500 million worth of rough.

In his reply, Penny said that when the subject of supplies to Diamdel was raised at the WFDB Meeting, the DTC representative reminded attendees of a letter sent by Penny to Schnitzer on March 16, 2004, saying that the contents were clear on the subject.

“That is, we remain steadfastly committed to the position and that it is our hope and intention to supply up to $500 million to Diamdel this year,” Penny emphasized.

Penny added he looked “forward to continuing the constructive relations that it has established with the WFDB on issues of mutual interest.”

Schnitzer, after receiving the letter, said the WFDB would continue to follow the DTC's supply of rough diamonds to Diamdel.

“The supply of rough diamonds by Diamdel to the secondary market is of utmost importance to the well-being and survival of our industry and trade. Without the middle and small range diamond manufacturers, our industry's future would be at great risk,” he said.