Following Industry Criticism, RJC Suspends Finalization of CoC for Diamonds
December 04, 11The CoC standard aims to create a paper trail that follows diamonds from mine to store. While offered as a voluntary system, the diamond industry voiced two main concerns: that the standard as presented is not practical to implement – including carrying large additional costs – and that the system with its flaws will be adopted as a replacement or augmentation of the Kimberly Process.
The RJC said it planned to launch CoC standard for gold, platinum group metals and diamonds in 2012.
In June of this year, when the industry became widely aware of the CoC talks, a large number of diamond industry figures that participated in the consultation process admitted that they thought that the plan is not a good one but avoided blocking it for fear of appearing “not Politically Correct.” Their concern was that if they voiced objections it may be understood that they are against increased transparency and accountability.
Recently, industry analyst and commentator Chaim Even Zohar published a cost analysis of CoC, stating that implementing the standard will cost the diamond and jewelry industry $1.25-$1.7 billion and cause a 8-10 percent increase in the price of diamonds.
Other raised concerns include the creation of two types of goods – more expensive “good” diamonds, and less expensive “bad” diamonds, creating a preference for the later because of the better price.
RJC stated over the weekend that it has formed a sub‐committee consisting of members from all sectors of the supply chain, with the objective of consulting further with companies and trade associations an effort to resolve the concerns. Additional information can be found here.
“The terms of reference, including the reporting timetable, for the sub‐committee are currently being developed and will be posted on the RJC website as soon as they have been completed and formally ratified by the RJC Standards Committee. This is expected to occur in February 2012,” RJC said.