Three of the four leading participants in the International Diamond Board (IDB), an industry-wide generic marketing initiative, decided to postpone the start-up phase of the initiative, “until Alrosa has had sufficient time to review its plans and confirm its participation,” according to an internal letter sent on Tuesday to group participants.

 

Alrosa is not just a founding member of the group, its former president Sergey Vybornov had initiated the idea and hosted the founding meeting in St. Petersburg. Following his departure from Alrosa, his successor Fyodor Andreyev has not expressed yet the commitment needed to move forward.

 

Alrosa indicated that less than three months in the top seat, Andreyev did not have a chance to review and decide on the company’s policy in regards to the IDB.

 

BHP Billiton, De Beers and Rio Tinto, the three companies that published the letter, said they hope and expect that the situation will be clarified by the end of October.

 

They add that while the incorporation of the IDB as a UK company will continue as planned, the appointment of a CEO to run the IDB will need to be postponed.

 

Several names have been mentioned as possible candidates for the CEO position. Some are serious contenders for the spot, while others include self-nominated candidates. Among them are a former executive of a body similar to IDB and a current executive of a regional diamond industry organization.

 

The following is the full text of the letter sent to participants:

 

Dear London Group Participant,

 

Following extensive consultation, BHP Billiton, De Beers, and Rio Tinto have made the unanimous decision to postpone the start-up phase of the International Diamond Board (IDB), until ALROSA has had sufficient time to review its plans and confirm its participation.

 

As you are aware, a key success factor for the IDB is to secure support from all parts of the diamond value chain and to this end, the contribution of ALROSA is seen as critical.

 

We respect and understand that ALROSA's leadership wishes to familiarise itself with the project and its implications before making a commitment. It is our hope and expectation that the situation will be clarified by the end of October.

 

The immediate impact of this decision will be the postponement of the appointment of a CEO to run the IDB. The incorporation of the IDB as a UK company will continue as planned.

 

We would like to take this opportunity to thank you for your support, patience and understanding, and look forward to being in touch in the near future.

 

Yours sincerely,

 

Christopher Ryder - BHP Billiton

Andrew Bone - De Beers

Jean-Marc Lieberherr - Rio Tinto