Diamonds for Life: New on Conflict Diamonds, Blood Diamonds, Conflict Free Diamonds and the Kimberly Process

Archive for March, 2009

Probe Underway in Zimbabwe for Alleged Killings at Diamond Fields

by Admin on March 24th, 2009

Whiteflash Diamonds

An international team from the United Nations’ (UN) world diamond regulatory body, the Kimberley Process (KP), has arrived in Zimbabwe to investigate reports of mass murder at the hands of soldiers in the Chiadzwa mining fields. The team arrived earlier this week and are set to report back on the widespread accounts of killings in the Chiadzwa area, which has been the center of controversy since October when the army was called in to disperse thousands of illegal diamond hunters. The government had originally illegally seized the Chiadzwa diamond claim from British-based Africa Consolidated Resources in 2007 and set off a diamond rush when it encouraged locals to help themselves.

But the arrival of the army  resulted in violence and murder after the area was sealed off with military roadblocks and troops. Accounts from survivors of the military onslaught detailed the killings, speaking of machine-gun attacks by helicopter and armed attacks by troops on the ground. Civilians in the region also reported that anyone attempting to enter Chiadzwa was arrested and often tortured and killed.

Zimbabwe Lawyers for Human Rights have said that about 5,000 people were arrested during the army operation, with three-quarters of them showing signs of having been tortured severely. The Movement for Democratic Change (MDC) has also claimed that hundreds of people were buried in mass graves “to hide the regime’s murderous activities” and that the soldiers sent to “guard” the fields had become illegal diamond dealers themselves.

The probe by the KP has come on the back of a recent and damning report by a nongovernmental organization (NGO) involved in stopping the trade of conflict diamonds. The group, Partnership Africa Canada (PAC), earlier this month released a report titled “Zimbabwe, Diamonds and the Wrong Side of History,” and accused the KP of being unwilling and unable to deal with Zimbabwe. “The almost desperate insistence by some governments that the Kimberley Process has nothing to do with human rights is disgraceful,” said Ian Smillie, PAC’s research coordinator. The group has called for an immediate embargo on Zimbabwe diamonds and has demanded action by the UN Security Council.

Zimbabwe’s mining minister, Obert Mpofu, has meanwhile insisted that “no one was killed” in the army operation in Chiadzwa and this week said that Zimbabwe, a signed-up member of the KP, “is committed to the successful implementation of the Kimberley Process and will provide information on the situation on the ground.” The last inspection in Zimbabwe by KP officials was in 2006.

Kimberley Process review visit to Zimbabwe

by Admin on March 23rd, 2009

  

 

Kimberley Process review visit to Zimbabwe to assess implementation of scheme to combat conflict diamonds 

The Kimberley Process, chaired by the European Community in 2007, is sending a review visit to Zimbabwe from 29 May to 2 June 2007 at the invitation of its government. The team will assess the implementation of Kimberley Process rules in Zimbabwe. The team is led by the Russian Federation, with representatives from Norway, South Africa, the World Diamond Council and civil society (Partnership Africa Canada) and will meet relevant stakeholders in Zimbabwe.

 

European Commissioner for External Relations and Neighbourhood Policy, Benita Ferrero-Waldner, said “This review visit illustrates the determination of the Kimberley Process to ensure a robust monitoring system, and its determination to react swiftly and decisively and work with all member countries and partners to eliminate hiding places for conflict diamonds.”

Zimbabwe has invited a review visit from the Kimberley Process to assess its implementation of Kimberley Process rules. These rules require participating countries to implement effective controls over the production, import and export of rough diamonds. 

The review visit will assess the implementation of these measures in accordance with the standard terms of reference for such visits agreed by Kimberley Process participants in 2003. At their most recent Plenary meeting in Gaborone, Botswana in November 2006, Kimberley Process participants noted that the vast majority of participating countries had already invited review visits. The Plenary agreed to launch a second round of review visits; this visit to Zimbabwe is the first of the second round. 

During its visit the team will meet relevant stakeholders involved in KP implementation and go to the main mining areas of Zimbabwe. 

Following recent developments in the diamond sector in Zimbabwe, the Kimberley Process has been closely monitoring the situation. As part of this effort, the Government of Zimbabwe has provided regular reports and has invited a review visit. 

Background

The Kimberley Process grew out of discussions in May 2000 in Kimberley, South Africa among interested governments, the international diamond industry and civil society, as a unique initiative to combat ‘conflict diamonds’ – rough diamonds used to finance devastating conflicts in the 1990s in some of Africa’s diamond-producing countries. The Kimberley Process is backed by the United Nations; in December 2000, the UN General Assembly adopted a resolution supporting the creation of an international certification scheme for rough diamonds, renewed most recently in December 2006. 

In November 2002, an agreement was reached on the Kimberley Process Certification Scheme (KPCS): an innovative system imposing extensive requirements on all Participants to control all imports and exports of rough diamonds and to put in place rigorous internal controls over production and trade to ensure that conflict diamonds could not enter the legal diamond trade. In four years, the Kimberley Process has helped to reduce the amount of conflict diamonds to a tiny fraction of world trade. 

The Kimberley Process Certification Scheme now has 46 Participants (representing 72 countries, with the European Community counting as a single Participant), including all major diamond producing, trading and polishing centres, and counts on the active participation of civil society and industry groups. Its most recent addition was Liberia, admitted on 4 May 2007, following the positive assessment of Kimberley Process experts and the decision of the UN Security Council to lift diamond sanctions. 

To increase the effectiveness of the Kimberley Process, its requirements – including effective internal controls over diamond production and trade – must be applied in full by all Participants. The Kimberley Process has developed a number of tools to enable assessment of implementation and to address any issues which may arise. These tools include regular statistical reporting, annual reports and other compliance verification measures, such as review missions to participants who show ‘credible indications of significant non-compliance’. In October 2003, the Kimberley Process members agreed a comprehensive system of peer review. Since then, virtually all Participants have invited peer review visits. To date, nearly 40 review visits have been carried out, as well as a number of ad hoc monitoring missions, expert missions to applicant countries and review missions in cases of suspected non-compliance. Peer review teams are composed of representatives of governments, industry and civil society. 

For further details, please see: 

The EU & the Kimberley Process:
http://ec.europa.eu/comm/external_relations/kimb/intro/index.htm 

www.kimberleyprocess.com 

 

De Beers to Partner on Mining Projects

by Admin on March 23rd, 2009

South Africa-based De Beers Group has expressed intentions of forming a partnership with Zambian gemstone mining firms with a view of developing the country’s gemstone industry. The Emeralds & Semi-precious Miners Association of Zambia general secretary Victor Kalesha said on Wednesday that members from his association were ready to work with De Beers to tap potential for the export market.

“The association has already opened negotiations with De Beers who have promised to come back in due course,” Kalesha said. He added however, that the association was still waiting for De Beers to explain in detail what type of partnership it wanted before the association takes the next steps. The partnership would maximize production of gemstones through the injection of operating capital by both partners. More than 400 small-scale miners are expected to benefit through the partnership initiative which will help bring life to the sector currently lacking operating capital.

Sierra Gold Corp. Expands Operations to Diamonds in Sierra Leone

by Admin on March 16th, 2009

Sierra Gold Corporation, which mines gold in Sierra Leone, entered into two new joint venture agreements in the Zimmi region of Sierra Leone for diamond mining. Sierra Gold explores for and develops  gold and diamond properties in West Africa and produced more than 70 troy ounces of gold in February.

Doug Evans, chief executive officer (CEO) of Sierra Gold, said,  “We are pleased to expand our operations to the diamond sector of Sierra Leone. This area is well known for colored diamonds including canary yellow stones. The country is well known throughout the world for the size and quality of its diamonds and we hope to take advantage of this opportunity.”

Target Suspends Diamond Operations in Sierra Leone to Mine Gold

by Admin on March 12th, 2009

With rough diamond prices  at half of what they were mid-year 2008,  Target Resources placed diamond mining activity in Sierra Leone on hold to focus on gold projects, according to a note to investors.  Target Resources has 4,262 acres of diamond and gold leases in Sierra Leone’s  Kono District. The junior mining company also has an exclusive marketing agreement with Tiffany & Co., under which the luxury retailer has the right of first refusal on diamond output at market price.

In February, Tiffany agreed to advance Target Resources an additional $1 million loan facility, bringing the total outstanding amount of debt provided by Tiffany  and its subsidiaries to $9 million. The loan allows for commencing trial gold mining in Yele.

“As an alternative source of income, Target intends shortly to commence alluvial gold production along the Teye River and its tributary streams,” according to the mining company.  The gold licence area includes auriferous active streams and alluvial terraces as well as greenstones of the Kambui Supergroup, the largest greenstone belt in Sierra Leone which is highly prospective for hard rock gold mineralization. An operation is also being put in place to recover gold from the slimes discharged during diamond production in Kono.

Botswana Diamond Manufactures Lay Off Workers

by Admin on March 5th, 2009

 

  

The economic fallout is reaching all the way down to line workers in Africa’s diamond producing countries, as miners and manufacturers are curtailing and sometimes even closing their operations. According to a recent report, an estimated 1,800 people have lost their jobs in Botswana’s diamond mining and mining related industry. 

 

The Botswana press reported that eight cutting and manufacturing companies have retrenched 441 workers. According to a report that appeared in Mmegi, the manufacturers are Diamonds Manufacturing Botswana, DDA of Botswana, Suashish Diamonds Botswana Steinmertz Diamonds Botswana, Leo Schachter Botswana and Lazare Kaplan Botswana. In addition to them, DTC Botswana has reportedly laid off a number of workers. 

 

Most of these cutting and manufacturing companies opened their operations in Botswana as part of the local beneficiation effort to generate more of the diamond revenues in Botswana. Many of diamond manufacturers have received local rough diamond allocations to provide the local work. 

 

But with limited demand in the global market for polished diamonds and falling prices for those goods that are traded, diamond manufacturing around the globe has taken a blow, and everywhere workers are losing their jobs. 

 

In addition to the hurting manufacturing operations, many local diamond miners have limited their output, leading to an additional 1,400 job losses. So far, nine mining and exploration companies have retrenched workers this year: DiamonEx, BCL, Moolman, Mowana, Gope Exploration, Mine Tech, Mupane Gold Mine and Dewet Drilling. 

 

The number of job losses is expected to increase if Debswana will cut jobs as well. The company is currently in negotiations with worker unions over the issue.

 

The number of job losses is expected to increase if Debswana will cut jobs as well. The company is currently in negotiations with worker unions over the issue.

Botswana Diamond Manufactures Lay Off Workers

by Admin on March 5th, 2009

 

  

The economic fallout is reaching all the way down to line workers in Africa’s diamond producing countries, as miners and manufacturers are curtailing and sometimes even closing their operations. According to a recent report, an estimated 1,800 people have lost their jobs in Botswana’s diamond mining and mining related industry. 

 

The Botswana press reported that eight cutting and manufacturing companies have retrenched 441 workers. According to a report that appeared in Mmegi, the manufacturers are Diamonds Manufacturing Botswana, DDA of Botswana, Suashish Diamonds Botswana Steinmertz Diamonds Botswana, Leo Schachter Botswana and Lazare Kaplan Botswana. In addition to them, DTC Botswana has reportedly laid off a number of workers. 

 

Most of these cutting and manufacturing companies opened their operations in Botswana as part of the local beneficiation effort to generate more of the diamond revenues in Botswana. Many of diamond manufacturers have received local rough diamond allocations to provide the local work. 

 

But with limited demand in the global market for polished diamonds and falling prices for those goods that are traded, diamond manufacturing around the globe has taken a blow, and everywhere workers are losing their jobs. 

 

In addition to the hurting manufacturing operations, many local diamond miners have limited their output, leading to an additional 1,400 job losses. So far, nine mining and exploration companies have retrenched workers this year: DiamonEx, BCL, Moolman, Mowana, Gope Exploration, Mine Tech, Mupane Gold Mine and Dewet Drilling. 

 

The number of job losses is expected to increase if Debswana will cut jobs as well. The company is currently in negotiations with worker unions over the issue.

 

The number of job losses is expected to increase if Debswana will cut jobs as well. The company is currently in negotiations with worker unions over the issue.

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