From Nobel Economy prize winner to rock star, from miners to industry analysts, bankers to royalty, the first day of the Antwerp 2007 Diamond Conference offered discussions and speeches, culminating in a charismatic and critical sermon by Sir Bob Geldof.

 

 

The conference, set to examine beneficiation in African diamond producing countries, saw industry leaders express support for the shift. They debated its  virtues and purposes, as the local production is being partially sold for polishing in those areas.

 

According to Kago Moshashane, of the Botswana ministry of minerals, energy and water, his country wants to form a world class diamond center optimized for the country in terms of labor and utilizing only locally mined goods. He stressed specifically that this action would not subsidized by the government.

 

Nobel Economy winner Prof Joseph Stiglitz, delivered a thought-provoking speech, discussing change in “Comparative Advantage” – a country’s focus shifting from what is perceived as its economic advantage to a different focus resulting in an economic jump forward. Stiglitz observed that developing countries can use technology to change their Comparative Advantage.

 

De Beers MD Gareth Penny warned the listeners that consumers will cast the deciding vote on the fate of the industry.

 

WFDB president Ernest Blom called for the opening of a second diamond exchange in Africa.

 

The afternoon discussions concluded with a panel of industry observers and commentators. While expectations were for a heated debate with sparks flying between them, speakers delivered stark observations. Charles Wyndham said beneficiation is mostly a political outcome, adding that companies [setting up polishing factories in Africa] are mostly interested in cheap rough diamonds.

 

Martin Rapaport warned that the situation in Africa is explosive, and that as a result of people being used and warn down in the continent, a revolution should be excepted.

 

The gala dinner, with Princess Mathilda in attendance, provided two interesting speeches. Johnson Seirlieaf, the president of Liberia, stressed the tough situation of her country. Only recently the international community allowed it to start export its rough diamonds after years of strife. Underlining the country’s situation, she expressed appreciation for a quarter of million dollars contribution to help setup rough diamond facility – an amount most countries can afford to spend very easily.

 

No doubt the star of the evening, if not the entire day, was Bob Geldof, who delivered a fiery ad libbed speech, as he passed across the stage.

 

“A cow in Europe, an unnecessary cow, some of them on your plates right now, gets a $2.50 subsidy in Europe, while a human in Africa gets $0.50., per annum!” Geldof said as he criticized the West’s treatment of Africa, not providing it with necessary economic assistance.

 

“It’s a pebble, a polished pebble,” he said about diamonds, adding that peoples lives are dependent on what is decided by the crowed. He criticized the weaknesses of the Kimberley Process. “All it takes is a country that doesn’t care [about KP] and some of their representatives are sitting in this room.”

 

He called for a Marshall plan for Africa, which helped resurrect Europe and Japan after World War II.

 

Despite a feeling among attendants that Geldof rained on the industry’s parade, he got a standing ovation from the crowd.