Initiates $6M budget to engage in diamond research, marketing activity
The major diamond mining companies have agreed to form an organization that will support development in the diamond sector, including engaging in category marketing.
ALROSA, De Beers, Rio Tinto, Dominion Diamond Corporation, Lucara Diamond Corporation, Petra Diamonds Ltd. and Gem Diamonds will form part of the Diamond Producers Association (DPA), the companies announced in a joint statement on Wednesday.
The companies initially met in March to discuss the idea. The move follows calls from within the industry to create a body that will fund a campaign to drive consumer demand, after De Beers narrowed its marketing spending to just focus on its own branded products.
The DPA will have an initial budget of $6 million, funded by the seven member companies and the funds will enable the group to start operating effectively as soon as an executive director has been recruited. The budget will be reviewed annually, based on the activity plan submitted to the board for approval, the statement noted.
A recruitment process is under way to appoint an executive director who will be responsible for the operational activity of the DPA and report to the bard.
Picture De Beers Group of Companies.