Buying Diamonds with Confidence

What are ‘blood’ diamonds?

A blood or conflict diamond is a diamond mined in a war zone and sold to fund conflict or civil war.  They have mainly been used to fund conflicts in Africa and have also helped to finance terrorist groups and for money laundering purposes. 

In the mid 1990s, conflict diamonds represented as much as 15% of the world’s total, but the Kimberley Process has cut that to less than 1% worldwide.

As with all consumer goods produced in developing countries, there are also issues about slave labour and exploitation.  An ethical diamond is therefore at the other end of the scale, whereby no exploitation has occurred during its extraction and journey from rough mined stone to finished jewellery.

How has the diamond industry responded?

In January 2003 an international certification scheme known as the Kimberley Process was instituted to prevent the trade in conflict diamonds. 

All sectors of the diamond industry have committed to a voluntary system of self-regulation to support the Kimberley Process and help stem the flow of conflict diamonds. The self-regulation requires all sectors of the diamond industry to implement a code of conduct to prevent buying and selling of conflict diamonds.

Is the diamond business good or bad for Africa?

Some African countries are working hard to re-establish a legitimate diamond trade.  In Botswana for example, people are directly benefiting from the export of diamonds, profits from which are being used to fund health care and schooling. 

The legitimate diamond trade provides jobs for over 10 million workers and brings prosperity to areas where this activity occurs. Support of the Kimberley Process by all nations and consumers can convert slavery into jobs and smuggling into respected commerce.

And what about other sources of diamonds?

Botswana and Russia are the world’s leading diamond producers.  Another main source is Canada which, from the first discovery in 1991, now ranks as the world’s third largest supplier, and growing.

These top three producers supply the vast majority of the diamonds sold across the world.

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© Copyright Rubinstein Keightley, May 2007

The United Nations first identified the conflict diamond issue in 1998 as a source of funding for war. In May 2000, the diamond industry convened a meeting in Kimberley, South Africa, to plan a process by which diamond origin could be certified, and plan a method by which the trade in conflict diamonds could be halted, and diamond buyers be assured that their diamonds have not contributed to violence.

In July 2000, the World Diamond Congress adopted a resolution to strengthen the industry’s ability to block sales of conflict diamonds. This called for an international certification system on the export and import of diamonds, legislation in all countries to accept only officially sealed packages of diamonds, for countries to impose criminal charges on anyone trafficking conflict diamonds and a ban on any individual found trading in conflict diamonds, from the World Federation of Diamond Bourses.

The World Diamond Council was formed in January 2001 and set out to draft a new process whereby all diamond rough could be certified as coming from a non-conflict source.

In 2002, after two years of negotiation between governments, diamond producers and non-government organisations, the Kimberley Process Certification Scheme was created.

The Kimberley Process has succeeded in cutting the flow of conflict diamonds from as much as 15% in the 1990s, to less than 1% worldwide today - none of which, it is thought, now reaching the main western markets of America and Europe.

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© Copyright Rubinstein Keightley, May 2007

Angola

In 1998, the UN placed Angola under sanctions forbidding countries from buying diamonds from them. At that stage, Angola was in civil war which was partly being funded by diamond trading. This was the first time that diamonds were identified as being a source of war funding. Angola’s civil war has now ended and the country is again a legitimate part of the diamond trade.

Sierra Leone

In July 1999, following over eight years of civil conflict, negotiations between the Government and the Revolutionary United Front led to the signing of a peace agreement. In 2000, a ban was imposed on the import of rough diamonds from Sierra Leone, other than those which were Government controlled.

Liberia

2003 saw the end of nearly 25 years of civil war. Liberia today is at peace and is attempting to construct a legitimate diamond mining industry. However, UN sanctions have not yet been lifted.

Ivory Coast

The Ivory Coast began to develop a fledgling diamond mining industry in the 1990s. A coup overthrew the government in 1999, starting a civil war. The country became a route for exporting diamonds from Liberia and Sierra Leone and foreign investment began to withdraw. To curtail the illicit trade, the nation stopped all diamond mining, and in December 2005, the UN banned all exports of diamonds from the Ivory Coast.

Democratic Republic of the Congo (formerly Zaire)

Suffered numerous civil wars in the 1990s, but has become a member of the Kimberley Process and now exports about 8% of the world’s diamonds. De Beer’s most celebrated and priceless diamond, the flawless D-colour 200-carat ‘Millennium Star’ was discovered in the DRC.

Republic of Congo

Faced UN sanctions in 2004 because, despite having no official diamond mining industry, the country was exporting large quantities of diamonds, the origin of which it could not detail.

Read more about the Kimberley Process Certification Scheme which has succeeded in cutting the flow of conflict diamonds detailed above and increased consumer confidence in buying ethical diamonds.

Interested in Rubinstein Keightley’s policy on buying diamonds?

© Copyright Rubinstein Keightley, May 2007