Diamond Producer De Beers Hopes to Shine in Canada

VANCOUVER -- Consumers have long been dazzled by the glitter and glamour associated with diamonds. Perhaps it's because buyers have lusted so greatly for these precious stones that they've overlooked their origins. But in a day and age when lobbyists have turned fur coats and Nike cross-trainers into politically charged material items, it's not surprising that diamonds have finally come under the gun from human rights activists.

The industry has been beset by the controversy surrounding "conflict" or "blood" diamonds, gems that come from war-torn countries in Africa. In addition to activists, the United Nations, the World Bank and Washington politicians also are taking a stand against the trading in illicit diamonds -- which helps to finance many of the civil wars on the continent. On Monday, campaigners in the U.S. called for an embargo on stones from six countries: Zimbabwe, Liberia, Burkina Faso, Ivory Coast, Togo, and the Democratic Republic of Congo.

Not wanting to get caught up in a consumer backlash, the industry has been quick to respond and is poised to establish tougher standards for the diamond-trading business. At the center of all of this activity has been De Beers Consolidated Mines (DBRSY Quote), the world's largest and oldest diamond producer. Last week, the company announced a number of measures intended to maintain consumer confidence, increase worldwide demand for the gems, and establish "globally recognized distribution channels." ...