Working sessions of the International Diamond Manufacturers Association (IDMA) taking place as part of the 37th World Diamond Congress have been witnessing intense discussions on a wide range of topics covering issues related to prices, inventory levels, profitablity, financing, synthetic diamonds and generic diamond promotion, the organisation said in an update issued yesterday.

The direction was set by the speech presented on behalf of outgoing IDMA President Maxim Shkadov, who was unable to attend the Congress due to developments in the Russian diamond market that required his undivided attention. As reported earlier, the speech was read out by IDMA Secretary General Ronnie VanderLinden.

Shkadov emphasized that the diamond industry cannot and will not return to profitability without a healthy and reliable financing structure. "As the players in the supply pipeline will become positively aligned, it is our hope that the banks' will become confident enough with our industry to reinstate and strengthen financing structures to our sector," he said.

He also expressed the view that experiences over the past decades have shown “that the various beneficiation models that have required manufacturers to establish cutting plants in your countries have not brought the desired results, for either side”. He told the delegates from the producing countries that IDMA would be to enter into a dialogue with them to help “find and implement business models that will bring your countries the highest possible revenues for your mined diamonds, and at the same time allow for an infrastructure that will ensure profitability for the manufacturers."

During other sessions, the delegates heard a presentation by Pranay Narvekar on the GJEPC’s KYC programme and its implementation in the market, as well as reports from the World Diamond Council's outgoing President Edward Asscher and WDC Executive director Patricia Syvrud.

There also were detailed discussions on the need for the synthetic diamond producers to create a protocol and paper trail to protect the gem and jewellery supply pipeline and the consumers from fraud. IDMA delegates also noted with concern the synthetic sellers' current marketing practices that seem to concentrate on negative publicity about natural diamonds.

 Jean Marc Lieberherr, CEO of the Diamond Producers Association, gave a general overview of the DPA's objectives, and invited all to attend the DPA's breakfast seminar on June 3 at JCK Las Vegas, where the DPA will reveal its consumer-oriented campaigns for the holiday season in the US.