Zimbabwe to Sell Its Marange Diamonds

Thankful Musukutwa (left) and Zimbabwe Mining Minister Obert Mpofu Photo from the Diamond Guru blog

In a move that could wreak havoc on the diamond and jewelry industries, the government of Zimbabwe said it will sell diamonds from its controversial Marange fields, which has been the scene of past human rights abuses and, according to several organizations, where these violations still occur. The government has denied those allegations.

Responding to questions from a visiting Norwegian delegation, Thankful Musukutwa, Zimbabwe Mines and Mining Development Secretary, said Zimbabwe will not be stopped from trading its diamonds by Non-Governmental Organizations and “hostile” nations, according to a report in the state-controlled Herald newspaper.

The story headline is a quote presumably from Musukutwa that states, “We won’t be stopped from selling diamonds.”

“We have had a few problems with the Kimberley Process Certification Scheme and we have gone over them. We have worked our way up and we are very compliant,” Musukutwa reportedly said, according to the report. “We have resolved that we are going to sell our diamonds and that is what we are going to do. We feel we are compliant and have done more than other countries.”

Beginning in 2008, the Zimbabwe army took over the Marange fields, considered by many to be one of the largest diamond deposits in the world, forcing out tens of thousands of small-scale miners. These miners were massacred by soldiers and villagers have been beaten, raped and forced to work in the mines. The human rights abuses led to Zimbabwe to being suspended from the KP.

The KP voted to temporarily reinstate Zimbabwe in July, allowing two supervised exports of rough diamond from Marange held in August and September. However, the KP in November, based on continued reports of human rights abuses, failed to reach an agreement on whether Zimbabwe will be able to sell diamonds through the organization’s certification scheme, a system that tracks diamond sales from the mine to the market, which has led to a ban diamonds from the Marange field.

Musukutwa charged that the stalemate is the result of the Kimberley Process engaging in politics. He said the organization should stick to its mandate of preventing the trade of “blood” or “conflict” diamonds—terms used to describe diamonds mined in a war zone and sold to finance an insurgency, invading army's war efforts, or a warlord's activity.

The Norwegian delegation was led by Deputy Foreign Affairs Minister Ingrid Fiskaa, according to the report. When pressed on human rights abuses, Musukutwa questioned her motives. He then said these charges are from outsiders, such as non-governmental organizations and other countries. The newspaper said Fiskaa wasn’t clear about the visit but it charged that it is “reliably informed” that the group also intends to meet some NGOs.

“We run the place and we are there all the time,” Musukutwa said. “We are surprised that we get foreign people like you who tell us there are human rights abuses.”

Swiss Development Group Calls for Countrywide Ban in Zimbabwe Diamonds

The Marange diamond field  Photo by Tsvangirayi Mukwazhi, AP

A Swiss international development organization has urged its government to ban trade in diamonds from Zimbabwe's controversial Marange field because of continued reports of human rights violations, according to the Ecumenical News International.

Bread For All, the Development Service of the Protestant Churches in Switzerland, said the diamonds should not have a market in Switzerland based on reports of ongoing human rights abuses by its local partner, the Zimbabwe Advocacy Office.

Marlon Zakeyo, who heads the Zimbabwe Advocacy Office in Geneva, told ENI, that the ban in Switzerland is important because the country is a center for jewelry and watches, it is known for protecting human rights and it is a partner of the Kimberly Process, which is charged with preventing trade in “blood” of “conflict” diamonds—terms used to describe diamonds mined in a war zone and sold to finance an insurgency, invading army's war efforts, or a warlord's activity.

In addition, the two organizations said the definition of the terms “blood” or “conflict” diamonds should be updated by the KP to include human rights violations by forces of the state. The groups say the present definition refers to rebel forces, a loophole that had allowed the Zimbabwean government to sell Marange diamonds internationally under Kimberley Process supervision.

If Switzerland agrees to ban the diamonds, it will be the first country to do so. However, they will join a growing list of diamond dealers and jewelry industry officials who will not buy diamonds from Zimbabwe, most notably the Rapaport Diamond Trading Network (RapNet), U.K. jewelry company MasterCut, and the Company of Masters Jewellers, the U.K. retail organization that is the exclusive buyer of MasterCut diamonds.

Beginning in 2008, the Zimbabwe army took over the Marange fields forcing out tens of thousands of small-scale miners. These miners were massacred by soldiers and villagers have been beaten, raped and forced to work as virtual slaves. The human rights abuses led to Zimbabwe being suspended from the KP.

The KP voted to temporarily reinstate Zimbabwe in July, allowing two supervised exports of rough diamond from the Marange production held in August and September. However, the KP in November failed to reach an agreement on whether Zimbabwe will be able to sell diamonds through the organization’s certification scheme, a system that tracks diamond sales from the mine to the market, which has led to a ban diamonds from the Marange field.

Meanwhile, Zimbabwean Mines Minister Obert Mpofu has threatened to sell diamonds without Kimberley approval, saying Zimbabwe has met all of its requirements.

RJC Warns Members not to Trade in Marange Diamonds

A watchdog organization for the sustainable and conflict-free sourcing and sales of gemstones, precious metals and jewelry has told its members not to trade in diamonds from the Marange mine in Zimbabwe until it receives Kimberley Process approval.

“No trade of Marange diamonds can currently take place under the Joint Work Plan until an agreement can be found. Participants are therefore reminded of the need for vigilance and ask Participant to notify the WGM chair in the event of receipt of an irregular shipment of Marange diamonds, until new arrangements are agreed that will allow continued implementation of the Joint Work Plan, including the supervised export mechanism,” The Responsible Jewellery Council said in a statement to its members.

The RJC is a non-profit organization promotes responsible ethical, human rights, social and environmental practices in a transparent and accountable manner throughout the industry from mine to retail. Zimbabwe wants to export diamonds from its controversial Marange field, where human rights groups allege it is the scene of forced labor, torture, beatings and harassment by government troops. The southern African country denies all allegations.

The Kimberley Process is charged with preventing trade in “blood” or “conflict” diamonds, the term used for diamonds mined in a war zone and sold to finance an insurgency, invading army's war efforts, or a warlord's activity. It operates a certification scheme designed to eliminate these issues in the trade of diamonds by identifying the source of a diamond’s origin. After four days of closed-meetings I early November, the KP was unable to reach a decision on the trade of these diamonds.

The KP suspended diamond trading from the Marange mine, then instituted a Joint Work Plan where diamonds could be sold under KP supervision. Two diamond sales were held in August and September. But NGOs and some diamond traders are not convinced that the alleged human rights abuses have been eliminated.

The RJC statement reads as follows:

As is known to all Kimberley Process (KP) Participants, and as is stated in the Draft Communiqué, circulated to all participants on November 12th, 2010, the Plenary did not come to an agreement regarding KPCS arrangement for diamonds from the Marange area (Zimbabwe). Consultations are ongoing and I am confident that we will find a consensual way forward which recognises the progress made by Zimbabwe in terms of compliance with KP requirements, whilst offering sufficient reassurance that there would continue to be progress in all areas under the Joint Work Plan, so that we can eventually bring the whole of Marange – and indeed Zimbabwe as a Participant - into full KP compliance. Meanwhile, it is of utmost importance that all Participants remain vigilant and ensure that the terms of the Joint Work Plan and Saint Petersburg agreement are respected these consultations are ongoing. As a consequence, no trade of Marange diamonds can currently take place under the Joint Work Plan until an agreement can be found. Participants are therefore reminded of the need for vigilance and ask Participant to notify the WGM chair in the event of receipt of an irregular shipment of Marange diamonds, until new arrangements are agreed that will allow continued implementation of the Joint Work Plan, including the supervised export mechanism. I very much count on your support and will keep you informed of developments.

Update: KP Fails to Approve Zimbabwe Diamond Sales, Country Official Defiant, Says it will Sell them Anyway

Photo by Tsvangirayi Mukwazhi, AP

After four days of closed-door meetings, officials representing the Kimberley Process have failed to reach an agreement on whether Zimbabwe will be able to sell diamonds through the organization’s certification scheme.

“An agreement has not yet been finalized,” Boaz Hirsch, KP chairman reportedly told a news conference Thursday in Jerusalem, where the KP plenary meeting was held. “We are still working with Zimbabwe and other countries.”

Meanwhile, Zimbabwe's mines and mining development minister, Obwet Moses Mpofu, said the country would sell diamonds "immediately" from Marange.

“Zimbabwe will sell diamonds without any conditions,” he reportedly said. “There is no opposition to that.”

Zimbabwe wants to export diamonds from its controversial Marange field, where human rights groups allege it is the scene of forced labor, torture, beatings and harassment by government troops. The southern African country denies all allegations.

The African nation has threatened to flood the world market with underpriced diamonds if it is not allowed to export, The Associated Press reports.

The Kimberley Process is charged with preventing trade in “blood” or “conflict” diamonds, the term used for diamonds mined in a war zone and sold to finance an insurgency, invading army's war efforts, or a warlord's activity.

Foreign and domestic human-rights organizations have criticized Zimbabwe for violence against civilians in the Marange diamond fields of eastern Zimbabwe. The criticism led to investigations by the Kimberley Process over the past year. Zimbabwe was allowed to hold two diamond sales in August and September under the watch of the KP.

Report: Kimberley Process Officials Debate Zimbabwe Diamonds

Photo by Tsvangirayi Mukwazhi, AP

Kimberly Process Certification Scheme officials are at a stalemate on whether to remove all restrictions on Zimbabwe's s sale of diamonds from the controversial Marange field, Voice of America and other media agencies reports.

KP officials meeting in Jerusalem are expected to reach a final decision today, according to the reports. The Kimberley Process is charged with preventing trade in “blood” or “conflict” diamonds, the term used for diamonds mined in a war zone and sold to finance an insurgency, invading army's war efforts, or a warlord's activity. There is debate on whether there are human rights abuses in Marange field and, if so, whether the diamond industry should continue to trade in one of the largest diamond areas in the world.

The organization is going over a report about trade in the diamond fields in the Southern African country. Bloomberg News, quoting KP chairman Boaz Hirsch, said the report offers mixed results.

Foreign and domestic human-rights organizations have criticized Zimbabwe for violence against civilians in the Marange diamond fields of eastern Zimbabwe, Bloomberg News reports. The criticism led to investigations by the Kimberley Process over the past year. Zimbabwe was allowed to hold two diamond sales in August and September under the watch of the KP.

Human Rights Watch, the New York-based advocacy group, alleged in June 2009 that Zimbabwe’s military may have killed as many as 200 informal miners working at Marange. The group had called for a ban on Marange diamonds unless Zimbabwe adheres to Kimberley Process standards, Bloomberg reports. Zimbabwean Mines Minister Obert Mpofu, who is attending the Kimberley Process meeting in Israel, denied there were any remaining areas of non-compliance.

Ractliffe Charged with Possessing Rough Diamonds

The man who allegedly concealed a diamond gift to supermodel Naomi Campbell has been formally charged by South African authorities, according to media reports.

The National Prosecuting Authority of South Africa has charged Jeremy Ractliffe (pictured left), the former chief executive of the Nelson Mandela Children’s Fund, with violating the Diamonds Act of 1956, under which it is illegal to possess uncut diamonds, according to the report.

During the Charles Taylor war crimes tribunal in The Hague, Netherlands, Campbell testified in August that after dinner at Nelson Mandela’s house in 1997, which Taylor, who was the Liberian president at the time, also attended, she later received a mysterious package with uncut diamonds from people she didn’t know. Taylor gave the diamonds to Ractliffe who kept it in a personal safe without anyone’s knowledge. After Campbell’s testimony, Ractliffe, a South African resident, gave the diamonds to country's authorizes.

Since the testimony, Ractliffe’s life has been turned upside down. He was forced to resign from the Mandela charitable organization and he is now being prosecuted by South African authorities.

Taylor is charged with 17 counts of war crimes and crimes against humanity while president of Liberia. Specifically, he is accused of backing the rebel Revolutionary United Front in the Sierra Leone Civil War and assisting them through weapon sales, which were smuggled illegally, in exchange for blood diamonds. These weapons were used to commit atrocities against civilians that left many thousands dead or mutilated, with unknown numbers of people abducted and tortured.

GIA Opens Lab in Hong Kong

The Gemological Institute of America formally opened its fifth international laboratory in Hong Kong with a quick ribbon-cutting ceremony on Sept. 15 attended by more than 125 industry leaders and media members.

“The Hong Kong trade is so vibrant, it’s essential to be here,” said Donna Baker, GIA president and CEO, as she officially opened the lab. “Hong Kong is home to a thriving and sophisticated gem and jewelry industry.… We believe our lab will make it even more convenient for those professionals to access our services and promulgate the international gemological standards.”

Officiating at the opening were Lawrence Ma, the founding chairman of the Diamond Federation of Hong Kong; Gregory So, undersecretary of Commerce and Economic Development for the Hong Kong Special Administrative Region; Cheng Yu Tung, chairman, New World Group; Ephraim Zion, managing director of Dehres Ltd. and GIA board member; Thomas Moses, senior vice president of GIA Laboratory and Research; Wai Man Cheng, director of the Hong Kong laboratory; and Kathryn Kimmel, GIA chief marketing officer.

The lab, located in New World Tower, 18 Queen’s Road Central, will offer on-site services for GIA Diamond Grading Reports and Diamond Dossiers, laser inscription and diamond sealing services. Prior to opening the new lab, GIA operated a diamond and gemstone take-in facility there for four years and a school for nearly 20 years.

Second Zimbabwe Diamond Sale Date Kept Secret

The Zimbabwe government said it will not disclose the date of its next diamond auction citing security reasons, according to a published report.

The diamond sale was scheduled for September 6, but apparently has not happened. Mines and Mining Development permanent secretary, Thankful Musukutwa, reportedly refused to disclose the dates when Abbey Chikane Kimberley Process appointed monitor is expected in the country to certify another batch of diamonds for the second sale.

Zimbabwe sold 1.1 million carats of diamonds on Aug 11 from the two companies mining in the Marange diamond fields. It was the first diamond sale since diamond sales from Zimbabwe were banned by the Kimberly Process, an organization of governments, diamond dealers and non-government organizations that attempts to combat “conflict” or “blood” diamonds by using a certification process to trace rough diamonds to their origins.

Beginning in 2008, the Zimbabwe army took over the Marange diamond fields forcing out tens of thousands of small-scale miners. These miners were massacred by soldiers and villagers have been beaten, raped and forced to work as virtual slaves.

Some diamond traders and jewelers are still skeptical whether the diamond fields are free from abuse and have instituted their own ban on the purchase of diamonds from  Zimbabwe. Among them are the Rapaport Diamond Trading Network, UK-based diamond jewelry company MasterCut and the Company of Masters Jewellers, the exclusive buyer of MasterCut diamonds

Sierra Leone Diamond Exports Up 43%

Photo from AFP

Diamond exports from Sierra Leone increased by 43 percent in the first half of 2010 over the same period last year, reaching $51 million, the Government's Gold and Diamond Office reportedly said Wednesday.

In the first six months of 2009 exports totaled more than $35.8 million, Agence France-Presse reports the government saying in a press release. 

This is the highest amount of exports from the West African since the Kimberley Process Certification Scheme  was implemented in 2000, according to the Sierra Leone government.

The Kimberley process seeks to ensure the sale of diamonds does not fund violence.

Deputy Mining Minister Ignatius Koroma told AFP the figures are the result of a recent decision to reduce the fee for the export license for diamond dealers from $40,000 to $35,000, due to a slowing in the diamond market.

Sierra Leone's government has stepped up efforts to control the trafficking of diamonds across its borders, AFP reports.

The illegal trading of so called blood diamonds was rife in the country's decade-long civil war, which ended in 2002.

UK Diamond Firm, Jewelry Buying Group Ban Zimbabwe Diamonds

UK-based diamond jewelry company MasterCut is refusing to buy rough diamonds from the Marange fields in Zimbabwe because the company said it doesn’t believe the human rights abuses that forced an international  ban on the diamonds hasn’t ended, according to media reports. The company has gone so far as to rally others to support its effort.

In addition, the Company of Masters Jewellers, which is the exclusive buyer of MasterCut diamonds, supports MasterCut's ban. CMJ is the largest independent jewelry buying group in the UK.

“We believe industry leadership is required to maintain consumer confidence, and would call on other diamond brands to confirm no Zimbabwean diamonds are being used in their diamond jewelry,” James Maxwell, MasterCut group marketing and strategy director, reportedly said. “Diamonds should be a force of good for Africa. Botswana has been a role model in sub-Saharan Africa, where it has demonstrated how diamond revenue can be channeled back into infrastructure, healthcare and education.

“We look forward to the time when we can buy from Zimbabwe, when diamonds are shown to be demonstrably beneficial to the country.”

Willie Hamilton, CMJ chief executive, reportedly added: “I support the ban one hundred percent. We jointly made this decision."

He continued, “There is too much uncertainty over whether the diamonds coming out of that country will be ethical. What constitutes ‘ethical’ also needs to be more comprehensively defined.”

The two groups have now joined the Rapaport Diamond Trading Network (RapNet), which has also banned diamonds from Zimbabwe. Martin Rapaport, who owns and operates the international diamond trading network, has warned its members that trading diamonds from Zimbabwe's Marange diamonds fields will result in expulsion from the network and having their names disclosed.

Beginning in 2008 the Zimbabwe army took over the Marange fields forcing out tens of thousands of small-scale miners. These miners were massacred by soldiers and villagers have been beaten, raped and forced to work as virtual slaves. The human rights abuses led to Zimbabwe's being suspended from the Kimberley Process, an organization of governments, diamond dealers and non-government organizations that attempts to combat “conflict” or “blood” diamonds by using a certification process to trace rough diamonds to their origins.

The KP voted to reinstate Zimbabwe in July, allowing two supervised exports of rough diamond from the Marange production. The first auction of 90,000 carats was held August 11and reportedly raised $72 million.  The second sale is scheduled for September 6.

Charles Taylor 'Blood Diamond' Trial Takes Its First Victim

Jeremy Ractliffe, head of the Nelson Mandela Children's Fund, has resigned that position following testimony at The Hague war crimes trial of former Liberian leader Charles Taylor, the charity said in a statement Thursday.

Ractliffe secretly kept three rough diamonds that were given to supermodel Naomi Campbell 13 years ago following a dinner at Nelson Mandela’s house. Campbell and then newly elected Liberian president Charles Taylor were among the guests at the dinner. Prosecutors are trying to tie those rough diamonds to Taylor, who is charged with five counts of war crime, five counts of crime against humanity, and violation of international humanitarian law. The prosecutors charge that the so-called blood diamonds were used to finance Taylor’s crime

Campbell testified two weeks ago that after the dinner she was preparing to go to sleep in one of Mandela’s bedrooms when strangers came to her door and gave her three rough diamonds. Campbell said she gave them to Ractliffe. Following the testimony, Ractliffe reportedly admitted that he took the stones from Campbell and kept them in his safe. He has since turned them over to South African authorities and may face criminal charges for harboring blood diamonds.

Ractliffe has said he secretly kept the diamonds because he feared she might be breaking the law if she took them out of the country and to protect the Mandela charity, according to media reports. Campbell seemed to believe that the stones were going to be used for the charity.

RapNet Bans Zimbabwe's Marange Diamonds

In two strongly worded statements, the Rapaport Diamond Trading Network (also known as RapNet), has warned its members that trading diamonds from Zimbabwe's Marange diamonds fields will result in expulsion from the network and having their names disclosed.

Martin Rapaport (pictured), who owns and operates the international diamond trading network, wrote the statements on August 12 and 15, which are on the Rapaport Web site.

He warned members that even though the diamonds sold August 11 were cleared by the Kimberley Process certification program—an international organization that attempts to ban the sale of “blood” or “conflict” diamonds (which refers to a diamond mined in a war zone and sold to finance an insurgency, invading army's war efforts, or a warlord’s activity)—trading these diamonds may still be illegal in the US, UK and EU.

Beginning in 2008 the Zimbabwe army took over the Marange fields forcing out tens of thousands of small-scale miners. These miners were massacred by soldiers and villagers have been beaten, raped and forced to work as virtual slaves. The human rights abuses led to Zimbabwe's being suspended from the Kimberley Process. The KP voted to reinstate Zimbabwe in July.

“Rapaport strongly advises all diamond buyers not to trade in KP-certified diamonds from Marange and to request written assurance from their suppliers that their diamonds have not been sourced from Marange, Martin Rapaport wrote August 12. “RapNet, the Rapaport Diamond Trading Network, will not allow the trading of any diamonds sourced from Marange, Zimbabwe. Members found to have knowingly offered Marange diamonds for sale on RapNet will be expelled and their names will be publicly communicated.”

On August 15, he wrote a letter to the dealer network, which he also made public on his Web site, stating that anyone who wishes to cancel their membership because of the restriction can do so within 30 days and receive a refund for the unused portion of their RapNet subscription.

Zimbabwe Opens Auctions of Diamonds from the Controversial Marange Fields

Zimbabwe held the first sale of diamonds from its Marange fields since international regulators partially lifted a ban imposed after the military violently seized control of the mines, Agence France-Presse reports.

Update: Estimates of the value of the sale vary from £48 million ($74.7 million) to £1.2 billion ($1.8 billion), according to the UK newspaper, The Independent.

About 900,000 carats valued at about $72 million were on sale Wednesday, according to Abbey Chikane, the monitor from the international Kimberley Process, which is charged with preventing trade in "blood diamonds," the term used for diamonds mined in a war zone and sold to finance an insurgency, invading army's war efforts, or a warlord's activity.

Buyers from the United States, Israel, Russia, Lebanon and India were at the auction at Harare's airport, some with pilots waiting to jet them out of the country afterwards. Read more

Naomi Campbell, Mia Farrow, Charles Taylor, ‘Blood Diamonds’

Now that I have fulfilled my search engine optimization requirements let’s discuss the impact this high profile, star-studded war crimes tribunal will have on the jewelry and diamond industries. It isn’t good.

Right now, the focus is on the world’s most famous fashion model, Naomi Campbell, and her vague testimony on mysteriously receiving rough diamonds late at night in her room at Nelson Mandela’s house after having dinner there with Taylor and others. The event took place in 1997. Taylor served as president of Liberia from 1997 till 2003.

Acclaimed actress and high-profile activist, Mia Farrow, who also testified at the trial, disputed important parts Campbell’s testimony as to events of that dinner, which she attended. Campbell’s former agent, Carole White, another dinner guest, also disputed some of Campbell’s testimony, but her story has come under attack by the defense as inconsistent.

For the tribunal in The Hague, Netherlands, Campbell’s testimony is vital as the court is trying to determine the direct link of “blood diamonds” to Taylor. For the majority of the world, it’s another celebrity story. However, the celebrity involvement in this highly technical trial has opened the issue of blood diamonds to the world more than the fictional Blood Diamond movie could ever have done.

This means that more people will be aware of diamonds and their past and present use in fueling wars and human atrocities. After all, Taylor is charged with 17 counts of war crimes and crimes against humanity while president of Liberia. Specifically, he is accused of backing the rebel Revolutionary United Front in the Sierra Leone Civil War and assisting them through weapon sales, which were smuggled illegally, in exchange for blood diamonds. These weapons were used to commit atrocities against civilians that left many thousands dead or mutilated, with unknown numbers of people abducted and tortured.

Along with diamonds, the spotlight will again be focused on The Kimberley Process—the joint governments, industry and civil society initiative to stem the flow of “conflict diamonds”—the term used by the industry as opposed to “blood diamonds,” through a certification process. In particular, its recent controversial decision to allow the sale of rough diamond exports from the Marange diamond fields in Zimbabwe, where diamonds are still fueling conflict and human rights abuses in that country. There are also problems with the diamond trade in Angola and Côte d’Ivoire.

Whatever you want to call these diamonds, even though they account for a minuscule part of diamond sales, they will be attracting plenty of attention for a long time to come. It’s important that distributors, retailers and consumers are vigilant in making sure the diamond jewelry they buy or sell is conflict free. More to come.

Second update 6/25/11: Kimberley Process Allows Zimbabwe to Sell Diamonds from Marange, Or Did it?

Miners at the Marange diamond fields.

The Kimberley Process ended its ban of Zimbabwe diamonds from the controversial Manage diamond fields— which has been the source of murders, human rights abuses and diamond smuggling—according to media reports.It is also the source of what is believed by many to be the largest deposit of diamonds in the world.

Update, 6/24/11, 6:30 p.m. EDT: Apparently these reports may have been issued too soon. After several Twitter exchanges with jewelry industry reporters Michelle Graff of National Jeweler and Rob Bates of JCK, apparently this may not the case. Please read on.

Zimbabwe authorities say the violence and smuggling no longer exists. Human rights group say violence and smuggling continue under the country's military, which is tied to the Zimbabwe ruling party, Zimbabwe African National Union, Patriotic Front (ZANU-PF), led by Zimbabwe president Robert Mugabe.

Mathieu Yamba, the current Kimberley Process chairman told reporters of the decision following a closed-meeting of the organization Thursday in Kinshasa, Democratic Republic of Congo.

Update, 6/24/11, 6:30 p.m. EDT: Yamba did say that the Kimberley Process approved mining in the Mbada and Kanadai mines in the Marange region and that exports from Zimbabwe’s Marange fields will be monitored by two representatives of the Kimberley Process until the organization’s next meeting, as confirmed by media reports. However, as he has done in the past, Yamba gave the approval without the consensus of Kimberley Process members that is needed to approve such a measure.

The Kimberley Process is made up of diamond industry representatives, government officials from 75 countries and non-governmental organizations. The Kimberley Process is charged with preventing trade in illicit diamonds—commonly called “blood” or “conflict” diamonds, depending on whether you have a vested interest in the diamond industry. Illicit diamonds under the organization’s mandate are the result of diamonds being used to fund brutal civil wars where innocent people are being killed and mutilated by those involved in these conflicts.

The Kimberley Process Certification Scheme imposes extensive requirements on its members to enable them to certify shipments of rough diamonds as “conflict-free.”

Update, 6/24/11, 6:30 p.m. EDT: The U.S. Department of State issued a statement saying that there is no consensus among members on the Zimbabwe issue.

"Contrary to some reporting, the Kinshasa Intersessional did not reach a consensus text. The Chair has circulated a text to participants which did not attract consensus," the statement read. "We believe that work toward a solution must continue, and that until consensus is reached, exports from Marange should not proceed."

As reported Thursday, the civil society coalition, which includes Global Witness and Partnership Africa Canada, reportedly walked out of the meeting charging that the KPCS is not meeting its most basic commitments to prevent diamonds from fueling violence and human rights violations, and to provide guarantees to consumers that they are buying clean diamonds.

For its part, Zimbabwe has said it will sell diamonds from Marange with or without KP approval and countries, including China and South Africa, said they will accept their diamonds. There are several other countries willing to do the same.

So regardless of what the KP does, Zimbabwe will sell its diamonds and countries will accept them while NGOs and other countries will protest. So after two days of meetings, nothing has changed.

Here are links to reports on the issue from National Jeweler and JCK.

Update 6/25/11, 6:10 p.m.: Here is a link to a Voice of America story that attempts to explain further what happened at the closed-door meeting.  VOC has consistently provided the most impressive coverage of this long-running issue.

The Collapse of the Kimberley Process Appears Imminent

A Kimberley Process certificate, which ensures that diamonds are conflict-free. Photo credit: De Beers

The Kimberley Process, which has been in a stalemate during the past two years over whether to allow Zimbabwe to sell diamonds from its controversial Marange diamond field, now appears to be breaking apart, according to published reports.

The civil society coalition, one of the three pillars of the Kimberley Process Certification Scheme, walked out of a meeting of KP members in the Democratic Republic of Congo Thursday saying negotiations with Zimbabwe were harming the scheme’s credibility, according to a report on the Rapaport website, Diamonds.net.

The coalition, which includes Global Witness and Partnership Africa Canada, reportedly said that the KPCS is not meeting its most basic commitments to prevent diamonds from fueling violence and human rights violations, and to provide guarantees to consumers that they are buying clean diamonds.

The latest proposal to allow exports from two Marange concessions operated by Mbada Diamonds and Marange Resources while other concessions would be subject to a Kimberley Process monitoring team until the next plenary meeting in November, was rejected by the U.S., Canada and Israel at the meeting in Kinshasa, the DOC’s largest city, Diamonds.net reports.

The Kimberley Process requires full consensus from all members to pass a resolution, Diamonds.net reports. Civil society, and the World Diamond Council, which represents the diamond industry, have observer status in the meeting.

Of course, according to the reports I’ve been reading, the KP meeting is being held behind closed doors, typical of how the organization operates even though it exists to ensure consumers that the diamonds they buy have been mined through legal means and without human rights abuses. The public portion of its website hasn’t been updated since February 18.

On Wednesday, Voice of America reported that Zimbabwean Mines Minister Obert Mpofu divided Kimberley Process members saying that his country will keep selling diamonds from the Marange field with or without the Kimberley Process. In speech that was described as a “diatribe” by some KP members, accussed “racist” Western nations of trying to obstruct Zimbabwe from realizing its diamond revenues.

Mpofu also boycotted an earlier meeting of a working group on Zimbabwe, VOA reports. Also in its report, it notes that Anjin, a Chinese firm, is developing parts of Marange in a joint venture with the Zimbabwean government. Mpofu reportedly said Anjin will soon begin to export rough diamonds from Marange.

Zimbabwe is a founding member of the Kimberley Process, an international organization made up of diamond industry representatives, government officials from 75 countries and non-governmental organizations. It is charged with preventing trade in illicit diamonds—commonly called “blood” or “conflict” diamonds, depending on whether you have a vested interested in the diamond industry. Illicit diamonds under the organization’s mandate are the result of diamonds being used to fund brutal civil wars where innocent people are being killed and mutilated by those involved in these conflicts.

The Kimberley Process Certification Scheme imposes extensive requirements on its members to enable them to certify shipments of rough diamonds as “conflict-free.”

The Marange diamond field, which many say contain the largest deposit of diamonds in the world, has been the scene of murders and other human rights abuses by Robert Mugabe’s government and its military, as well as illegal smuggling of diamonds. The Zimbabwe government insist those abuses have stopped but human rights advocates say they continue; that money from mines is being used to finance the ruling party’s operations, including upcoming elections; and diamond smuggling continues.

To learn more use the search option on this site and plug in the keyword terms "Kimberley Process,"  "Zimbabwe," or "Marange."

Is the Kimberley Process Dead? Does Anybody Know or Care?

A miner holds the fruit of his labor at the Marange mine.

While the international jewelry industry was meeting in Las Vegas this week, the big news was coming out of Africa as the Voice of America and other publications reported that the Kimberley Process Certification Scheme is in “turmoil” after South Africa announced that it will purchase diamonds mined at the controversial Marange diamond field in Zimbabwe.

A spokesman for South African Mineral Resources Minister Susan Shabangu, said the country’s position is the same as that of Kimberly Process Chairman Matthieu Yamba, who issued a statement in January saying Zimbabwe can freely sell its diamonds from Marange, even though there was never a consensus among Kimberley Process members.

Meanwhile, the World Federation of Diamond Bourses, which protects the interests of the world’s diamond bourses, held a dog-and-pony show at the JCK Las Vegas jewelry trade show last week. I didn’t bother to attend, opting instead to keep scheduled appointments with jewelry manufacturers and designers who were actually doing something relevant. Prior to its event, the WFDB stated that it supports the exports of diamonds from Marange.

Again a little backtracking is needed. Please forgive me if you read this before. The Kimberley Process is an international organization made up of diamond industry representatives, government officials from 75 countries and non-governmental organizations. It is charged with preventing trade in illicit diamonds—commonly called “blood” or “conflict” diamonds, depending on whether you have a vested interested in the diamond industry. Illicit diamonds under the organization’s mandate are the result of diamonds being used to fund brutal civil wars where innocent people are being killed and mutilated by those involved in these conflicts.

The Kimberley Process Certification Scheme imposes extensive requirements on its members to enable them to certify shipments of rough diamonds as “conflict-free.”

I’ve been wondering what the KP does besides hold closed-door meetings, which to me is its biggest failure. How can an organization that exists primarily to ensure consumers that its products have been mined through legal means and without human rights abuses can provide that assurance while meeting in private. In fact, the KP does such a poor job of communicating with consumers that I would doubt that one in 20 jewelry shoppers know what the hell a “Kimberley Process” is, much less what it does.

The Marange diamond field, which many say contain the largest deposit of diamonds in the world, has been the scene of murders and other human rights abuses by Robert Mugabe’s government and its military. The Zimbabwe government say those abuses have stopped but human rights advocates say they continue; that money from mines is being used to finance the ruling party’s operations, including upcoming elections; and diamond smuggling is rampant. However, the country is not involved in a civil war, therefore under the KP’s mandate, Zimbabwe’s government and its allies believe they can sell its diamonds. Expanding that mandate to include human rights abuses not funded by civil war is one of the sticking points.

The human rights abuses eventually led the Kimberley Process to suspend buying diamonds from Marange. The KP voted to reinstate Zimbabwe in July, 2010, allowing two supervised exports of rough diamond from the Marange production in August and September. The date of the second sale was changed and the sale was held without public knowledge.

The issue of reinstating Zimbabwe into the KP Certification Process was the main item on the agenda when the organization met in November, 2010 in Jerusalem. After four days of closed door meetings (of course), participants failed to reach a conclusion. The issue is still unresolved with communications being issued only among KP participants and no information being presented to the public, unless it is leaked.

For its part, Zimbabwe government officials insist that it received approval to sell diamonds from Marange through the KP certification scheme. In addition, it has made statements that if the organization refuses to allow it to sell its diamonds it will do so anyway, possibly flooding the market with diamonds and reducing their value.

Meanwhile, a variety of organizations have already either banned its members from dealing in diamonds from Marange or have encouraged their members not to do so, including the Responsible Jewellery Council, RapNet, and MasterCut and the Company of Masters Jewellers in the U.K.

Now that South Africa will reportedly buy diamonds from Marange, there is no doubt in my mind and others that India and China will follow. So the market will either be flooded with diamonds that are not KP certified, or the KP will cave to the pressure and certify the diamonds. The first scenario should create a quick end to the KP while the second scenario will probably lead to a much slower demise.

In the end I wonder if it matters, since the general public has no idea that this organization ever existed in the first place.

WFDB and Local Zimbabwe Group at Odds Over Diamond Sales

The Marange diamond fields.

Two organizations are sending different messages on whether Zimbabwe should sell diamonds from its controversial Marange diamond fields, where human rights abuses and smuggling have happened in the past and are alleged to be continuing, according to reports from Zimbabwe newspapers. 

The World Federation of Diamond Bourses is urging the Kimberley Process Certification Scheme to allow the country to sell diamonds from the mine, which is considered by many to contain the largest deposit of diamonds in the world. 

Meanwhile, the Zimbabwe Blood Diamonds Campaign, an advocacy group, warned against any rushed decision to allow Zimbabwe to resume diamond trading, saying the local industry is still not compliant with international standards. 

Zimbabwe, for its part, has maintained that it adheres to the guidelines of the Kimberley Process and will sell its diamonds with or without its permission or certification scheme. 

The Kimberley Process, for its part, is divided over the issue and has been at a stalemate that is threatening to bring down the entire organization, which is charged with ending the trade in "blood" or "conflict" diamonds, which have fueled decades of devastating conflicts.

To read stories from the Zimbabwian newspapers, go to the Jewelry News Network Twitter feed, @JewelryNewsNet. To read more about the issue go to the Jewelry News Network search engine on the home page and do a search with the words "Zimbabwe" or "Kimberley Process."

Report: Kimberley Process Allows Zimbabwe to Sell Marange Field Diamonds

Mathieu Yamba,  Kimberley Process chairperson. Photo credit: www.israeldiamond.co.il

The chairman of the Kimberley Process is allowing Zimbabwe to sell diamonds from the controversial Marange Fields, according to a report from Rapaport News.

The diamond publication said it has obtained a copy of the letter written by Mathieu Yamba, from the Democratic Republic of the Congo and letter sent to Kimberley Process participants and observers. It reads in part: “With immediate effect, Zimbabwe is hereby authorized to resume exports from the compliant mining operations of Mbada and Canadile (Marange Resources).”

The exports will include the stockpile of diamonds held from the two concessions as well current production, according to the online publication. He did not authorize exports of diamonds mined between 2007 and 2009, held by various other sources.

The publication also reports that the United States and European Union has objected to the decision. U.S. officials reportedly sent word to KP authorities in India and the United Arab Emirates stating that it would view any shipments proceeding as a result of the decision as non-compliant.

The U.S. also warned that it would publish the names of companies taking delivery of these goods on the State Department website to ensure that U.S. companies are aware of potential non-compliant goods that may be in their supplier’s stocks, and ask the Office of Foreign Assets Control, which administers U.S. sanctions, to look more closely at the issue of these transactions, the publication reports.

To read more on this ongoing story, please go to the search engine of the blog and type the words "Kimberley Process" or "Zimbabwe."

De Beers Issues Kimberley Process Support Statement

The Kimberley Process Certification Scheme received an important statement of encouragement by the world’s largest diamond company.

The De Beers Group reiterated its support in the Kimberley Process—a global effort to end the trade of “blood” or “conflict” diamonds—in a statement at the end of its annual financial report Friday. The international organization of diamond industry representatives and non-governmental organizations has come under a great deal of criticism (including from this publication) in its handling of the situation at the controversial Marange diamond field in Zimbabwe.

“De Beers is committed to the highest ethical and environmental standards so that consumers can be proud of the diamonds that they own and wear,” the diamond giant said in its statement. “Furthermore, the DTC (Diamond Trading Company) has offered guidance to its sightholders on the identification of potentially illegal and unethical exports from Zimbabwe’s Marange region. While De Beers has no mining interests in Zimbabwe, the group supports the ongoing dialogue between the Government of Zimbabwe and the Kimberley Process Chair.”

The Marange diamond field, which many say may contain the largest deposit of diamonds in the world, has been the scene of murders and other human rights abuses by Robert Mugabe’s government and its military. The Zimbabwe government say those abuses have been settled but human rights advocates say that these abuses continue; that money from mines is being used to finance the ruling party’s operations, including upcoming elections; and diamond smuggling is rampant.

The human rights abuses eventually led to Zimbabwe's suspension from the Kimberley Process. The KP voted to reinstate Zimbabwe in July, 2010, allowing two supervised exports of rough diamond from the Marange production in August and September. The date of the second sale was changed and the sale was held without public knowledge.

The issue of reinstating Zimbabwe into the KP Certification Process was the main item on the agenda when the organization met in November, 2010 in Jerusalem. After four days of closed door meetings, participants failed to reach a conclusion. The issue is still unresolved with communications being issued among KP participants and very little information being presented to the public.

For its part, Zimbabwe government officials insist that it is been approved to sell diamonds from Marange through the KP certification scheme. In addition, it has made statements that if the organization refuses to allow it to sell its diamonds, it will do so anyway, thus, possibly flooding the market with diamonds and reducing their value.

Meanwhile, a variety of organizations have already either banned its members from dealing in diamonds from Marange or have encouraged their members not to do so, including the Responsible Jewellery Council, RapNet, and MasterCut and the Company of Masters Jewellers in the U.K.

You can read about this issue on this blog by doing a search for “Kimberley Process” or “Zimbabwe.”