When Obert met Varda (Revised*)

Next week the attention of the global diamond industry's leadership will be focused for at least two days on Mumbai. India's diamond industry is holding the third Mines to Market International Diamond Conference and judging from its agenda, a number of events will provide some interesting headlines.

The conference is planned to provide a "Global perspective of diamond business as world’s experts discuss and debate on the burgeoning issues concerning the mines, rough supply, manufacturing, finance and ethical practices," say the organizers, the Gem & Jewellery Export Promotion Council (GJEPC).

According to the PowerPoint presentation by newly elected GJEPC Chairman Rajiv Jain and Vice Chairman Sanjay Kothari, the first day will meet Zimbabwe's Minister of Mines Obert Mpofu with DTC CEO Varda Shine. One represents in the eyes of many everything that can be wrong about diamonds while the other is a senior representative of a company that pushes ethical and transparent behavior wherever it turns.

I'm curious to know what they have to say to each other. Will the minister invite De Beers to mine in Zimbabwe? Will Shine chastise the country for its bloody track record and threats to nationalize mining operations or command it for the quality of its current state-of-the-art facilities, which are far better than those of neighboring countries?

[*After publication, the above created a certain commotion. I just found out that the two will not share the same stage and as it stands now, Shine will speak at a rough marketing session at 1 pm and Mpofu will attend a producers’ session that starts at 3 pm. In between, lunch will be served.

The rift between De Beers and Zimbabwe is deep and the idea of two senior representatives sitting together was very surprising and naturally made you wonder about the interaction between them. That interaction will not take place.]

Departing De Beers CEO Gareth Penny will give his last speech to the industry in the keynote session. What will his message be in the farewell address? Will he remind the industry to focus on "putting for dough," to work hard on the important small incremental movement that is behind real progress? Will he provide a personal prospective or maybe step out of the mold and allow himself to voice something he never said before?

The combination of sessions on rough diamond sourcing and legal and ethical compliance, coupled with guests from Zimbabwe and the Kimberley Process meeting next month – we can expect some talk on a proposed KP Plus system that the U.S. and NGOs are trying to introduce.

It's a system that would extend the KP certification to polished diamonds as well as integrate human rights issues into KP. Some really don't like the idea and we should expect immediate ricochets.

But more than anything, we need to step back and see the forest for the trees – the stated goal of Mines to Market is to "consolidate the 'Global Brand' status of India."

With its size, financing, sourcing and manufacturing ability, India knows that if it wants to take the helms of the diamond industry and start leading it, it needs to step forward and do so.

With the conferences, trade shows, united decisions to stop buying rough when it fits its needs, forming rough diamond buying groups and tending to their own local retail market - that is exactly what the Indian market is doing, taking the lead. For that reason, it's no coincidence that the global diamond leadership will focus on Mumbai. That attention will last far more than just two days.