Russian Jewellery Network

The World Diamond Congress will discuss the new strategy of South Africa's diamond giant De Beers on July 17-19, Russian Diamond Chamber president Sergei Ulin told Prime-Tass on Friday.

Ulin, who is also vice president of Russia's diamond company ALROSA, said the congress' another important matter would be admission of the Russian Diamond Chamber to the World Federation of Diamond Bourses.

Ulin said De Beers' new strategy is to drop its monopoly on the world's uncut diamond market, and this gives Russia a chance to take a new look at its prospects and interests on the diamond market.

He said De Beers corporation, which had created a vertically integrated system and which controls 50 per cent of the world's diamond output, would protect its group interests.

However, a significant number of new independent diamond producers is seen on the market. Thus Canada will soon be able to extract an annual 500 million dollar worth of diamonds and Angola a 800 million dollar worth. Australia's plans are as far-reaching and all of this will boost competition on the diamond market, Ulin said.

He stressed that ALROSA has no reasons for confrontation with De Beers. They will join efforts to consolidate the diamond production market and expand trade in brilliant jewelry.

Russia's charted diamond store is the world's largest, with ALROSA accounting for 99.8 per cent of Russia's total diamond output.

Russia's share of the market is about 20 per cent of the total worth of diamonds extracted in the world.

Itar-Tass

Source: GemKey