NGO Report Finds Angola Fails to Hit Int’l KP Standards

by AGavin on October 30th, 2007

Source. Diamonds.net 

Partnership Africa Canada (PAC) contends that Angola has failed to effectively implement the  Kimberley Process despite having made extraordinary  progress with the diamond industry following five years of peace in the southern African country.

The government’s implementation of the Kimberley Process “ arguably a bedrock upon which the current peace is built” has been based on a misguided and ultimately futile attempt to criminalize garimpeiros (artisanal miners) on the one hand, and a slipshod, half-hearted chain of warranties system on the other, PAC said in its 2007 Annual Diamond Industry Review on Angola. As a result, in the crucial informal sector, the current Angolan Kimberley Process simply does not live up to international standards.

Sources in the Kimberley Process, not familiar with the PAC report, told Rapaport News that Angola was fulfilling its minimum requirements of implementation. He also reported œnervous rumors that Angola may take the vice chairmanship of the KP, and therefore the 2009 chairmanship, when members meet for the KP’s annual plenary in early November.

The non-governmental organization recommended that the government develop an effective, transparent, believable system for tracking informal alluvial diamonds from production to export, as the current system is non-functional and violates Angola’s commitments to the KP.

PAC called upon the KP to require Angola to submit a comprehensive report on its internal controls in the artisanal sector, ensure that better records are kept for rough diamond transactions, and to pressurize Angola to invite a follow-up KP review visit of the country.

Still, the country has come a long way since the days when UNITA guerillas, under Jonas Savimbi, took control of Angola’s diamond provinces, mining the diamonds illegally and using the proceeds to fuel the civil war.

PAC explained that implementation of international controls on these conflict diamonds helped starve the rebel forces of funds, leading eventually to the defeat of Savimbi and the end of the war.

PAC noted the significant progress that has been made by Angolas diamond industry during the past five years, which has seen production nearly double, from 5 million carats in 2002 to around 9.5 million carats in 2006.

Revenue from diamond sales have also doubled through the five years to $1.2 billion in 2006, while government income has more than tripled to $165 million. Similarly, state-owned Endiama went from being in the red by $2.1 million in 2001, to record profits of more than $3 million in 2003.

The number of active diamond projects has grown to 12 by mid 2007, with another 15 expected to come on line in the next few years, and 30 more beyond that engaged in large scale prospecting, PAC reported. These projects currently employ more than 10,000 people, of which some 90 percent are Angolans.

The statistics, however, have not helped to alleviate poverty in the country and the report said that local communities suffer disproportionately from the exploitation of the countrys diamond resources.

PAC explained that the government and Endiama have been known to give away large percentages of various joint venture projects to political friends and insiders who contribute little to the success of the joint ventures, and have done nothing to merit such largesse.

Worse still, the money they receive is effectively robbing the people of Angola of funds that could have been used for development, the report added.

U.S. Importers Must FAX Kimberley Certs for Arrival of Rough Goods

by AGavin on October 27th, 2007

Source: Diamonds.net 

Effective immediately, all importers of rough diamonds must fax a copy of the Kimberley Process Certification (KPC) arriving with the imported diamonds to the United States Census Bureau upon making any entry with U.S. Customs and Border Protection. The Census Bureau is responsible for collecting, compiling and publishing import and export statistics for the U.S. Copies of the foreign KPC must be faxed to
1-800-457-7328. Questions regarding the KPCS may be directed to Ms. Adria Gibson, 202-863-6057. 

The information was provided by the Jewelers Vigilance Committee (JVC.)  The Clean Diamond Trade Act  that was signed into law in 2003 and prohibits the “importation into, or exportation from, the United States on or after July 30, 2003 of any rough diamond, from whatever source, unless the rough diamond has been controlled through the Kimberley Process Certification Scheme (KPCS).” The Act requires the Census Bureau to maintain statistics on imports and exports of rough diamonds. 

For information about the Jewelers Vigilance Committee’s (JVC) products and services, including its new DVD series covering legal compliance and anti-money laundering, visit JVC’s Website: www.jvclegal.org. 

Botswana: Country’s Diamonds Under Spotlight

by AGavin on October 25th, 2007

Source: AllAfrica.com
As the country embarks on taking centre stage in the world’s diamond trade through the opening of the Diamond Trading Centre (DTC) in Gaborone in the New Year, Botswana should start hosting major international conferences on the diamond trade in accordance with the country’s new status, says Akanyang Tombale, the Permanent Secretary in the Ministry of Minerals, Energy and Water Resources.
The country should use such conferences as a forum to tell its undiluted story regarding what it has to offer the world as a key player in the global diamond trade, Tombale said.
 He was speaking ahead of next week’s international diamonds conference in Antwerp, Belgium, where DTC Botswana and its ancillaries in Namibia and South Africa will be on the agenda.
He was also responding to a statement released by the conveners of the conference questioning Botswana’s capacity as the new centre of the diamond trade.
“Perhaps we should host several of these conferences ourselves in the future not only to lure diamond companies to Botswana, but to reassure (ourselves) that Botswana has the capacity to deliver as the new world diamond center,” says Tombale.
He admits that European powers that have been centres of the diamond industry may feel threatened by steps taken by Botswana; he assured them that Botswana does not intend to upstage anyone.
“Diamonds are not infinite resources,” Tombale observes. “But when they finally run out, we do not want to remain with just empty pits. Diamonds can help us diversify the future of the industry and De Beers has supported us in our move to diversify our economy from just being a diamond producer,” Tombale says.
“We wish European countries dependent on the diamond industry would help us achieve this dream because we need them on board. We do not want to be viewed as a threat to anyone.” Botswana will be represented by Minister Ponatshego Kedikilwe and key officials from the Ministry of Minerals, Energy and Water Resources at the Antwerp conference.
Tombale is hoping that Botswana’s cutting and polishing companies, four of which originate from Belgium, will also be in attendance.
Sixteen cutting and polishing companies have so far been registered in Botswana, while more are expected to be licensed in the New Year.
Tombale was asked to respond to a press statement released in Belgium casting doubt on Botswana’s capacity to be the new centre of the diamond trade.
“Questions have been raised about the viability of the fledgling African cutting industry, which faces stiff competition from India and China, and currently lacks the physical and financial infrastructures available elsewhere,” the statement reads in part.
It is feared that a number of invited speakers at the conference will dismiss the Botswana project and discourage any further interest in investing in the country. Notable among such speakers will be representatives of Canadian and Australian diamond companies, which have resolutely placed themselves to compete with Botswana.
“We are witnessing the beginning of a process that we know will change the way in which the diamond industry has operated for more than a century, but there are very real questions about the degree of change and what effects it will have on the business and the diamond market,” Freddy J. Hanard says in the statement. “These changes are forcing members of our industry to question how and where they will obtain rough supply in the future, and where they will process the diamonds. All these issues will be addressed at the conference in Antwerp.”
Hanard is the CEO of the Antwerp World Diamond Centre, the organiser of the Antwerp Diamond Conference.
The strident statement warns that the need to secure a greater portion of the diamond value chain is an issue of critical economic and political importance in Botswana, South Africa, Namibia and Angola, which together supply more than 50 percent of the rough diamonds flowing into the world pipeline each year.

Reports Call for Ban on ‘Blood’ Rubies

by AGavin on October 23rd, 2007

The European Union and Jewelers of America are now calling for a ban on “blood rubies.”  Cartier & Tiffany & Co. have both also joined the ban (related story).  Also visit Diamond Play Ground for this story and similar ones.

Gary Roskin, Senior Editor — JCK-Jewelers Circular Keystone, 10/18/2007 6:57:00 AM 

Since early October international news agencies from CNN to the Australian Broadcasting Corp., have been reporting that gemstones from Burma are financing the Myanmar military government, and that selling Burma rubies is equivalent to selling conflict diamonds. The following is a listing of some of the reports: 

* Two early reports, Reuters’s “Blood Rubies Bankroll Burmese Junta,” reported on ABC’s Web site, and CNN Jonathan Mann’s video report, “Myanmar Gems; Trade keeps military junta amply funded in Myanmar“  both focus on international response to the brutal crackdown on “civil disobedience,” peaceful pro-democracy rallies. The reports note that the European Union is considering a trade ban on gems from Burma, and that the US Congress has been asked to amend its ban to include gems “mined” in Burma. Current U.S. policy bans all Burmese products but allows Burmese gems cut and polished elsewhere to be legally imported. 

* In a feature story titled “US Jewelers Want Myanmar Gem Loophole Plugged,” from Agence France-Presse, the conditions at Burmese gem mines is also reported. “The stones are mined at a huge human cost, with reports of horrific working conditions in Myanmar’s ruby mines, whose access is forbidden to outsiders. Groups of Myanmar exiles have called for a boycott of the gem auctions held by the ruling junta, claiming that the mines rely on forced labor.” 

* Jeremy Woodrum, director of an organization called the U.S. Campaign for Burma was quoted as stating “Burma’s gem industry is dominated by the military regime and its cronies. No one with a conscience should buy a ruby because it is almost assuredly from Burma.” 

As CNN’s Mann states, “In Myanmar, they have Blood Rubies. The ring on your finger could be helping keep the Junta in power there.” 

Mann also talks about the U.S. ban on Burmese products, and how Burmese gems are legally sold here because of the “loophole you could drive truck through,” says Mann. 

* In their press release, Peggy Jo Donahue, director of Public Affairs for Jewelers of America notes that JA has asked Congress to amend the Burmese Freedom & Democracy Act of 2003, which bans the importation of products from Burma, so that it includes gemstones “mined” in that country. This would effectively close the loophole which allows the purchase and sale of Burmese gems which are cut, polished, and sold once outside of Burma. 

“Please note, JA has made it very clear that members should seek, on all future orders placed, written assurances from their suppliers that they will not knowingly supply any gems mined in Burma, until the process of democratic reform has started in that country.” 

While there are many in the gem business who can easily justify and defend the buying and selling of Burmese gems as helping the Burmese people and not the military government as these reports state, the jeweler is going to be hard pressed to overcome the power of the international press. 

* As Dave Federman, editor-in-chief of Colored Stone magazine writes, “looks like we’re going to have a ruby-less Christmas.” 

* Running ads in the Washington Post, Tiffany & Co. has noted it had already instituted a ban of all gems mined in Burma. Tiffany’s ad reads: 

“Tiffany’s Ban On Rubies From Burma Continues
Since 2003, Tiffany & Co. has not purchased rubies or other gemstones of known Burmese origin. Today, we are more committed than ever. We will continue our ban on the purchase of Burmese gemstones until democratic processes are restored in Myanmar.” 

* Cartier released its own statement on the issue, which reads: 

“Given the current crisis, and in accordance with our commitment to continuous improvement, Cartier has stopped buying gemstones which may have been mined in Burma (wherever those stones have been cut and exported from) until further notice. Cartier has issued instructions to this effect to its suppliers, requesting that they confirm on all relevant shipments that the gemstones provided have not been mined in Burma.”