Seven leading diamond mining companies yesterday announced their “commitment” to form the Diamond Producers Association (DPA). The founding members are: Alrosa, De Beers, Rio Tinto, Dominion Diamond Corporation, Lucara Diamond Corporation, Petra Diamonds Ltd, and Gem Diamonds Ltd.  They have declared their intention to “work together to support the development of the diamond sector” and have asserted that “The DPA will play an important and positive role in the diamond sector”.

The first ever international representative organisation of leading diamond producers across the world, the DPA will have a corporate registration in London, UK.

According to a press statement released by the group, the DPA’s remit will include, as they say:

1. Maintaining and enhancing consumer demand for and confidence in diamonds including joint category marketing initiatives;
2. Providing a reliable source of industry information, including trade and consumer research;
3. Acting as the unified voice of the diamond producers, when required and/or appropriate, with industry and non-industry forums/organizations;
4. Communicating the role and contribution of diamond producers to the diamond sector and broader society; and
5. Sharing best practices in health and safety, licence to operate, supply chain integrity and environment management.

The DPA is expected to “actively engage” with both industry and non-industry organisations to take promote the diamond sector’s interests.

Needless to say, the DPA will avowedly operate in compliance with all applicable competition/antitrust laws. “It will have an initial minimum annual budget of US$6 million, based on commitments of founding members,” the press release noted. “This budget will enable the DPA to start operating effectively as soon as an Executive Director has been recruited. It will be reviewed annually based on the activity plan submitted to the Board for approval.”

The search is now on for an Executive Director who will be responsible for the operational activity of the DPA and report to the Board. Apart from  matters related to incorporation of the organisation; and putting a team in place, the DPA  will also commission research “as a base to building a targeted activity plan for the next three years” as part of its activity for 2015.