Several global industry bodies are reportedly working on a new initiative to secure $65 million annually for category marketing, aiming to enhance the current budget of the Natural Diamond Council (NDC).
This plan follows the withdrawal of Russian diamond miner Alrosa from the NDC in early 2022, with . discussions taking place during the Dubai Diamond Conference, according to NDC CEO David Kellie in a recent interview.
The funding proposal, which remains under discussion, seeks to ensure broader financial support from across the industry, creating a more sustainable and representative marketing framework.
Goals and Proposed Mechanisms
The NDC’s current budget stands at $35 million, primarily funded by De Beers, other mining companies, and a limited number of trade partners. The proposed system aims to restore the organisation’s pre-2022 annual budget of $100 million.
The discussions involve the Antwerp World Diamond Centre (AWDC), the Dubai Multi Commodities Centre (DMCC), and India’s Gem & Jewelry Export Promotion Council (GJEPC). These organisations are exploring mechanisms for raising funds, potentially involving levies on rough diamond imports.
A source familiar with the proposal revealed that a 0.05% levy on imports is being discussed. While Kellie declined to confirm specific figures, he stated, “Contributions had to be ‘fair’ and ‘affordable.’” The GJEPC, for example, already collects a 0.02% levy from its members for generic marketing, which could serve as a model.
The parties are also evaluating how to represent contributors on the NDC board to ensure transparency and influence over spending decisions.
Kellie highlighted the importance of collective funding: “The industry is challenged at the moment, but a fraction of a percent from a lot of people makes a lot more sense than a few organisations putting in a lot more money. It also makes the NDC much more representative of the industry rather than a few players.”
Industry Collaboration
This initiative signals cooperation within the diamond sector on shared objectives, despite past competition. Kellie noted the significance of collaboration between traditional competitors like Dubai and Antwerp: “Up until now, Dubai and Antwerp have seen themselves as competitors. But I think what’s really interesting is how they’re coming together on this and recognising it as an industry challenge and that the more we work together on some things, the better everyone’s going to be.”
The proposal is under active consideration, with discussions targeting implementation by the first quarter of 2025. Stakeholders are expected to reconvene at the Facets 2024 conference in Antwerp to assess progress and refine the framework.
