India Seeks to Strengthen Global Diamond Governance

 

Competition for scarce natural resources such as oil, gas, uranium, and critical minerals has historically played a role in geopolitical tensions and conflict. Diamonds have also been implicated in violent conflicts, particularly in parts of Africa where the trade in rough diamonds once helped finance armed insurgencies and civil wars. These events underscored the need for a global system that promotes ethical sourcing and ensures transparency in the international diamond trade.

In response, the Kimberley Process (KP) was launched in May 2000 as a multilateral initiative aimed at preventing the trade in so-called “conflict diamonds.” The process established an international certification framework designed to ensure that rough diamonds entering the global market are not used to finance armed conflict.

Understanding Conflict Diamonds

“Conflict diamonds,” often referred to as “blood diamonds,” are rough diamonds mined in areas controlled by rebel movements or their allies and sold to finance military activities against legitimate governments. The issue came to global attention during the 1990s, when conflicts in countries such as Angola, Sierra Leone, Rwanda, and Liberia were linked to diamond revenues that funded armed groups.

Because many of these diamonds were mined from easily accessible alluvial deposits and traded through informal networks, they could easily enter legitimate international supply chains. Reports published in 2000, including investigations by Partnership Africa Canada and the United Nations, highlighted how illicit diamond trading contributed to prolonged conflicts and humanitarian crises.

In response, the United Nations General Assembly adopted a resolution in December 2000 addressing the role of diamonds in financing armed conflict. The resolution defined conflict diamonds as stones originating from areas controlled by forces opposing legitimate governments and used to fund military activities against them.

The Kimberley Process Certification Scheme

To address the issue, the government of South Africa convened a meeting in the city of Kimberley in 2000, bringing together governments, the World Diamond Council, industry stakeholders, and civil society organisations.

Following two years of negotiations, the Kimberley Process Certification Scheme (KPCS) was formally established in 2003. The scheme introduced a set of minimum standards that participating countries must implement to certify that shipments of rough diamonds are conflict-free.

Under the system:

• Every shipment of rough diamonds between participating countries must be accompanied by a Kimberley Process certificate confirming that the stones are conflict-free.
• Participating governments are required to implement national legislation and internal controls.
• Annual statistics on rough diamond trade must be published to enhance transparency.

Today, the Kimberley Process includes 60 participants, with the European Union and its member states counted collectively as a single participant. Together, KP participants account for more than 99% of global rough diamond trade, while trade with non-participants is prohibited.

India’s Role in the Global Diamond Supply Chain

India occupies a central position in the global diamond industry. It is the world’s largest hub for diamond cutting and polishing and a major importer of rough diamonds. As the leading exporter of cut and polished diamonds, India’s exports reached approximately US$13.3 billion in 2024–2025, and the country remains one of the largest consumer markets for diamonds, second only to the United States.

India has been a participant in the Kimberley Process since its inception in 2003. Implementation of the certification system is overseen by the Gem and Jewellery Export Promotion Council (GJEPC), which operates under the supervision of the Department of Commerce within the Ministry of Commerce and Industry.

In 2026, India assumed the chairmanship of the Kimberley Process for the third time, having previously chaired the initiative in 2008 and 2019. The chairmanship carries both symbolic and strategic importance, providing India with an opportunity to strengthen the credibility of global diamond governance while reinforcing confidence in the international diamond supply chain.

Opportunities for Reform

India’s leadership comes at a time when discussions around reforming the Kimberley Process are gaining momentum. One of the key areas under review is the definition of “conflict diamonds,” which currently focuses primarily on stones used to finance rebel movements against legitimate governments.

Many stakeholders argue that the definition should be expanded to address broader concerns, including:

• Child labour
• Environmental damage
• Human rights violations linked to diamond mining

Another priority is improving traceability and transparency across the global diamond supply chain, ensuring that diamonds can be reliably tracked from mine to market.

In addition, strengthening capacity-building and technical support for countries with limited institutional resources could enhance the effectiveness of the certification framework and ensure more consistent implementation of standards worldwide.

Strengthening Confidence in the Diamond Market

As one of the most influential players in the global diamond trade, India has a strong incentive to ensure that the Kimberley Process remains credible, transparent, and trusted by consumers. By supporting meaningful reforms and strengthening compliance mechanisms, the chairmanship offers India an opportunity to reinforce ethical standards across the international diamond industry.

For the global diamond sector, maintaining strong governance frameworks is essential to preserving consumer confidence and ensuring that diamonds remain symbols of beauty, rarity, and integrity.

Source: DCLA

Alrosa Profits up 88% Despite G7 Sanctions

 

Alrosa reported an 88% jump in its FY2025 profits, as it cut costs, improved efficiency, diversified into gold and benefited from a weaker ruble.

Russia’s state-controlled miner has been selling rough to India, China and elsewhere since the G7 nations imposed full sanctions in March 2024.

Net profit for FY2024 plunged by 75% as a result of the sanctions, down to RUB 21.2bn ($248m).

But it rebounded last year, up to RUB 36.2bn ($468m), according to the company’s full-year 2025 financial disclosure, dated 27 February.

Revenue slipped by 1.7% year-on-year to RUB 235.1bn ($3.04bn), but earnings (EBITDA) were up 26% to RUB 57.8bn ($748m).

The company produced 29.7m carats, a 10% drop from the previous year, sold 26.2m carats, a 20% drop from the previous year, and stockpiled the remainder.

The surge in profits came as Alrosa shuttered unprofitable diamond mines and diversified into gold as a strategic buffer against diamond market volatility and sanctions.

It invested RUB 8.3bn ($105m) in the Degdekan Project, projected to yield 3.3 tonnes of gold annually by 2030, and is exploring the potential for gold extraction from tailings at its Mirny mine.

“In 2025, the diamond industry continued to be pressured by several factors, including geopolitical and macroeconomic uncertainty and changing consumer preferences, which led to a decline in jewelry demand and an increase in diamond inventory in the cutting and polishing sector,” the company said.

“To stabilize the market, major diamond producers continued to limit supply and reduce prices. This strategy partially stabilized the negative diamond price dynamics.

“In the short term, the challenging market situation will persist: excess inventory in the midstream, as well as the ongoing imbalance between supply and demand, will continue to put pressure on prices and limit the potential for increased sales volume for the group.”

Source: DCLA

India’s Jewellery Exports and Diamond Imports Disrupted as Middle East Conflict Escalates

 

Surat, Gujarat, India Group of Diamond workers cutting & polishing the diamonds

India’s gems and jewellery trade is facing significant disruption as the escalating conflict in the Middle East interrupts both exports of finished jewellery and imports of rough diamonds. Widespread flight cancellations and the closure of key airspace corridors have severely impacted logistics between India and the region.

Dubai, one of the world’s most important trading hubs for polished diamonds, rough diamonds, and bullion, has suspended numerous cargo and passenger flights. The resulting logistical bottleneck has effectively halted shipments of both finished jewellery and the raw materials essential to India’s diamond manufacturing industry.

Industry leaders have confirmed that trade flows have stalled. Vipul Shah, Managing Director of Asian Star, one of India’s leading diamond exporters, stated that exports and imports involving the Middle East have effectively come to a standstill due to the absence of functioning logistics channels.

The Middle East plays a critical role in India’s jewellery sector, accounting for nearly a quarter of the country’s annual gems and jewellery exports, which are valued at approximately US$30 billion. The United Arab Emirates is also a vital supplier of rough diamonds, providing more than two-thirds of India’s imports of uncut stones.

India remains the world’s dominant diamond manufacturing centre, processing approximately 90% of the global diamond supply through its extensive cutting and polishing industry.

According to Shaunak Parikh, Vice Chairman of the Gem and Jewellery Export Promotion Council (GJEPC), exports are expected to decline in March due to the disruption in Dubai. Beyond being a key consumer market, Dubai also acts as a major intermediary hub connecting diamond-producing countries with international consumer markets. Should the conflict continue, the resulting uncertainty could begin to weigh on demand.

India’s jewellery sector had already become increasingly dependent on Middle Eastern demand following the imposition of tariffs by the United States on Indian goods last year, which reduced American purchases.

Market volatility has further complicated the situation. Overseas buyers are becoming cautious about placing new orders amid fluctuations in the rupee–U.S. dollar exchange rate and ongoing logistical constraints, according to Colin Shah, Managing Director of Kama Jewelry.

The Indian rupee recently weakened to a record low of 92.3025 against the U.S. dollar, adding another layer of uncertainty for exporters.

For now, many transactions are being postponed. According to a Mumbai-based diamond exporter, both buyers and sellers recognise that the conflict has disrupted trade routes, and as a result, shipments are increasingly being delayed until logistics stabilise.

For the global diamond industry, the disruption highlights the vulnerability of the supply chain to geopolitical instability, particularly when critical trading hubs and transport corridors are affected.

Source: DCLA

Sarine Could Diversify as Losses Hit $3.9m

 

Sarine reported a $3.9m loss for FY2025, as lab grown sales soared in the US and weak sentiment persisted in China.

The Israel-based diamond grading tech company saw full year revenue dip by 25% to $29.6m.

But it sees some cause for optimism. Moving its manufacturing and support operations to India shift will save around $1.5m a year, it says.

There are early signs of the natural diamond demand rebounding, and it is tentatively exploring diversification into opportunities beyond diamonds.

The company recently acquired a 33% share in Kitov.ai, a company pioneering AI-powered computer-aided design (CAD), as it aims to expand to non-diamond sectors.

It also says that as part of its diversification plans it is at the very preliminary stages of exploring opportunities related to industrial applications of lab growns, and possible partnerships with banks or lenders to help them offer loans to diamond, gemstone, and jewelry businesses.

Sarine dominates the rough planning market, and serves as an effective wellbeing indicator for the midstream diamond manufacturing sector.

“FY2025 was another difficult year for the natural diamond polishing industry,” it says in its latest update. Lower quantities of natural diamonds flowing through the value chain directly impact its revenue.

“Capital equipment sales were depressed by contracting polishing activity in India, offset somewhat by new facilities opening in African producing countries.”

Sarine’s $3.9m loss for 2025 follows on from a small profit in 2024 ($1.1m) and a $2.8m loss in 2023.

Source: IDEX, as lab grown sales soared in the US and weak sentiment persisted in China.

The Israel-based diamond grading tech company saw full year revenue dip by 25% to $29.6m.

But it sees some cause for optimism. Moving its manufacturing and support operations to India shift will save around $1.5m a year, it says.

There are early signs of the natural diamond demand rebounding, and it is tentatively exploring diversification into opportunities beyond diamonds.

The company recently acquired a 33% share in Kitov.ai, a company pioneering AI-powered computer-aided design (CAD), as it aims to expand to non-diamond sectors.

It also says that as part of its diversification plans it is at the very preliminary stages of exploring opportunities related to industrial applications of lab growns, and possible partnerships with banks or lenders to help them offer loans to diamond, gemstone, and jewelry businesses.

Sarine dominates the rough planning market, and serves as an effective wellbeing indicator for the midstream diamond manufacturing sector.

“FY2025 was another difficult year for the natural diamond polishing industry,” it says in its latest update. Lower quantities of natural diamonds flowing through the value chain directly impact its revenue.

“Capital equipment sales were depressed by contracting polishing activity in India, offset somewhat by new facilities opening in African producing countries.”

Sarine’s $3.9m loss for 2025 follows on from a small profit in 2024 ($1.1m) and a $2.8m loss in 2023.

Source: DCLA

TAGS FEBRUARY 2026 DUBAI MARKET & TENDER REPORT

 

There appears to be an improvement in both overall mood and confidence amongst buyers this month. We believe the reason behind this has been the recent behaviour of the leading producers, De Beers, Alrosa, and Angola. If we look at the last quarter of 2025, all 3 producers were distributing broadly, substantial volumes of goods, whether in boxes or special deals across all the major centres to anyone willing to buy. However, by the year end all 3 producers tightened distribution significantly. De Beers only sold a “special deal” to one customer, as did Alrosa, and Angola (Catoca) reduced from ten boxes to just three. Luelle followed suit reducing from ten boxes to just five. This served to tighten both supply and distribution.

The sale of De Beers by Anglo American continues with ongoing speculation as to which consortium will be the purchaser. Following the publication of De Beers full year figures released on 20 th Feb, there was a further $2.3 billion write down of the company. This is the third write down in as many years bringing the company to a $2.3 billion valuation.

We believe that once a clear leadership role is established, it will provide a further boost to confidence within the industry.

Rough

As seen recently larger sizes of rough +10cts remain in good demand, as do the 5-10ct ranges reflecting strong prices, where 2 carat polished is in good demand. 2-4 carat goods are also strong, but it seems this has still to be reflected fully in the polished prices of 4grs. The 3-6grs, which for several months have been less popular, have seen a resurgence in demand primarily since De Beers adjusted their prices last month, however again this demand is surprising because sales of pointer polished remain slow.

An area of significant change has been the smalls -3grs. While price in these areas remains key, we are seeing some demand. This is in stark contrast to the situation at the end of 2025, just 6 weeks ago, when customers had no appetite to even look at the goods.

Last week De Beers informed its customers that some goods could be refused prior to the Sight without negatively impacting the customers ‘demonstrated demand’ quota. These were primarily in some area -3gr +7, and -7, and all Near Gem and Industrial boxes. This might indicate that there will currently be no price adjustment made in these areas during the February Sight.

Overall, it is expected that again De Beers will keep distribution tight which will continue to help the market. Alrosa commenced sales this week and echoed the general sentiment, with prices in the 2-10ct ranges increasing by between 3-5%. Mid-range sizes 4-6grs reduced by 2-3%, to fall in line with market prices. -9 sizes have also been reduced to reflect current market price.

All these adjustments are broadly aligned to market demand, so although perhaps fragile, as polished sales are slow, the market seems to be finding an equilibrium.

ODC sales run from 16 th – 25 th Feb, where they will present 972,000 carats, including some ROM parcels purchased last Oct.

Polished

Polished prices seemed to have slowed their decline in several areas, noticeably 0.30-1.00 carat sizes. Overall, polished markets at retail level are seasonally quiet. In US there has been demand for 1.50 carat and larger in Rounds and Fancy shapes, and Valentines sales look positive. Indian polished demand slowed slightly due to high gold prices, and China remains weak.

The Interim Agreement framework, between US and India, announced in early February, under which zero tariffs will be applied to diamonds and coloured gemstones entering the US from India has been unanimously welcomed. Currently tariffs have been reduced to 18% (effective March 2026) which will provide immediate relief and once the agreement is concluded full zero tariff should revive competitiveness. The effect of tariffs last year resulted in a 60% fall in polished diamonds exports to the worlds leading market. It is expected that India may pause exports to the US, while final terms are discussed. Tariffs on finished jewellery will remain at 18%.

TAGS Tenders

We presented our latest tender from 16 th – 20 th Feb. The event consisted of a full range of size categories and qualities with an emphasis on +5 carats. The value was more than $16m, and we welcomed well over 100 companies to view. We concluded a sell through of 60% to a total of 46 international companies. As expected, the strongest bidding took place in the larger sizes and higher qualities.

Our regular tender of high quality Southern African production commences on 1 st March until 6 th March, and this will be followed by another Zimbabwe production from ZCDC, which will run from 8 th -12 th March.

Source: DCLA

Diavik and First Nation sign closure agreement as diamond mine winds down

 

The Tłı̨chǫ government and Diavik diamond mine have signed a formal closure agreement as the Northwest Territories operation prepares to end commercial production in March.

The agreement was signed on February 26 at a public ceremony at the Cultural Centre in Behchokǫ̀, attended by Tłı̨chǫ citizens, Elders, community members and staff. The event included opening and closing prayers, a community feast and a drum dance.

Diavik and the Tłı̨chǫ government first entered into a partnership agreement in 2000, recognising the importance of Tłı̨chǫ participation across all stages of the project. Over the life of the mine, that partnership has included commitments to employment, training, contracting and community investment.

Tłı̨chǫ citizens gained work experience and developed trades and technical skills during construction and operations, while Tłı̨chǫ businesses expanded capacity through contracting opportunities. Elders and community members also contributed Traditional Knowledge and feedback during construction, operations, closure planning and remediation activities.

With Diavik transitioning into closure following more than two decades of production, the new agreement outlines commitments to safe and responsible reclamation and long-term stewardship of Tłı̨chǫ lands. It includes funding for socioeconomic mitigation measures to support Tłı̨chǫ-led initiatives during the closure phase, as well as continued commitments to employment, training and business opportunities.

“Our partnership with the Tłı̨chǫ government has been foundational to Diavik’s success,” said Diavik COO Matthew Breen.

“We are proud to continue to strengthen those bonds as we move into closure, working together towards a positive future for Tłı̨chǫ members and communities. We will continue to treat the people, the land and waters with respect, to allow for traditional and cultural activities on the reclaimed land, and to leave a lasting and positive legacy in the NWT.”

Source: DCLA

Belgian Diamonds Lose US Tariff Exemption as Trump Reimposes 10% Global Duty

 

The global diamond trade is facing renewed uncertainty after Belgian diamonds lost their US tariff exemption under a newly imposed 10% global import duty announced by US President Donald Trump.

The move follows a ruling by the Supreme Court of the United States, which struck down the legal basis for earlier tariffs introduced under the Emergency Economic Powers Act. In response, the Trump administration enacted a blanket 10% global tariff under Section 122 of the Trade Act of 1974 — a provision that requires duties to be applied consistently to all countries.

Antwerp Diamond Industry Hit Hard

The removal of exemptions directly impacts Antwerp, one of the world’s most important diamond cutting and polishing centres. Antwerp World Diamond Centre confirmed that companies should assume the 10% global duty now applies to polished diamonds entering the US until further clarification is provided.

Previously, diamonds polished in Europe had been exempt from US tariffs under a negotiated EU-US arrangement. That exemption gave Belgium a competitive edge over rival trading hubs such as India and Dubai. Under the new regime, however, those carve-outs no longer appear to apply.

The economic consequences could be significant. While the affected EU trade represents approximately US$4.6 billion annually — less than 1% of the EU’s total exports to the US — the impact is highly concentrated in specific industries, particularly diamonds.

Matthias Diependaele, Minister-President of Flanders, described the development as a “shockwave in Antwerp,” warning that trade volumes are under pressure, volatility is rising, and predictability in US demand has virtually disappeared.

Legal Constraints Under Section 122

Legal experts note that Section 122 of the Trade Act of 1974 mandates consistent application of tariffs across all countries. This effectively prevents the US administration from granting country-specific exemptions, including those previously negotiated with the European Union.

According to independent trade monitoring body Global Trade Alert, while many globally applied product exemptions — such as those for electronics — have been carried over into the new tariff regime, hundreds of country-specific exemptions agreed with the EU last year, including those covering diamonds and cork, are absent from the latest published exemption list.

Economist Johannes Fritz, CEO of Global Trade Alert, stated that the use of Section 122 effectively “handcuffs” the administration, making country-specific carve-outs legally problematic.

What This Means for the Global Diamond Market

For the international diamond pipeline, the reimposition of tariffs adds another layer of complexity to an already fragile market. Supply chains that rely on cross-border polishing, trading and distribution may face increased costs and pricing pressures in the US — the world’s largest consumer market for natural diamonds.

From a certification and grading perspective, heightened market volatility underscores the importance of independent, transparent assessment standards. As Australia’s recognised authority and official CIBJO laboratory, DCLA continues to monitor global trade developments closely to ensure clarity, confidence and integrity within the diamond sector.

Further clarification from US and EU officials is expected in the coming weeks as discussions continue regarding the duration and scope of the new tariff regime.

Source: DCLA