Amma Group Announces Its ESG Intention With Launch of New Partnership
The term conflict diamonds is well known and for a long time now, mines have signed up to the Kimberley process, ensuring diamonds are conflict free. However less well known are the Environmental, Social and Governance (ESG’s) concerns surrounding the industry.
In a desire to only work with organisations that are respectful of the environment, ensure positive social impact and gender equality, within a framework of governance, Amma Group has created a longterm ESG intention.
To team up with partners to create an ecosystem that aims to improve social, economic and environmental factors within the diamond and precious stone industry by 2030.
During the formation of its ESG goal, Amma Group was introduced to The Loudhailer, the African partner for the Global Start Up Awards. The African continent makes up around 40% of all diamond production. In a desire to ensure traceability of our diamonds, Amma Group has partnered with The Loudhailer to support and connect digital futureshapers whose innovations might address the ESG concerns surrounding the diamond mining industry.
“In looking for a partnership, it was important to Amma Group that we worked with an organisation that promoted innovation, self-sufficiency and growth, but also looked to ‘challenge the norms’ - all principles that have helped to shape our organisation”, said Mahyar Makhzani, Managing Director and Co-Founder of Amma Group
“With an ESG intention to work with partners to improve social, economic and environmental factors within the diamond and precious stone industry, Amma Group through is partnership with The Loudhailer is developing a fund structure to further support winners of the African based Global Startup Awards, also providing the business tools needed to succeed. Inevitably these digital disruptors will pave the way in addressing climate change, Environmental, Social and Governance metrics and energy”, said Philip Baldwin, Managing Director and Co-Founder of Amma Group.
Decrease in global diamond production creates demand amongst India’s super rich
It is well-known that the primary source of the rarest pink diamonds in the world, Rio Tinto’s Argyle mine in Australia, will close its operations imminently. Less well-known is the pre-pandemic expected decline of around 8% of total rough diamonds mined, starting in 2021. In Bain’s 2019 Global Diamond Industry Report, it states annual production of rough diamonds is expected to decline in Canada, Botswana, Australia and South Africa.
The anticipated reduced production, combined with the estimated 20% Covid-related drop in rough output this year, may push up diamond prices further in the near future. And with coloured diamonds representing just 0.001% of the total rough diamonds mined, the value of these exceptionally rare stones is foreseen to skyrocket as supply falls.
Indian based diamond traders have commented that the demand for Argyle pink diamonds has shot up by three times amongst high net worth Indians compared to the same period last year.
Over the last decade up to 2017, the average price paid at auction for coloured diamonds increased by 122% with Argyle diamonds demanding a further 10 - 20% on top. Argyle diamonds can reach in excess of $5 million per carat depending upon the size and clarity. The mine holds an annual invitation-only Argyle Pink Diamond Tender in which it showcases its best pink, red, and blue stones from the preceding year. Over the last decade, Philip Baldwin and Mahyar Makhzani have been invited to the Tender and have previously purchased three Argyle red diamonds, the Argyle Isla, Aurora and Prima, one of which sold with a Gross Return of 1.6x, with a 38% IRR (internal rate of return).
