Development Diamond Standards (DDS)

SHIFT IN CONSUMER PREFERENCES New Trends:  Organic Foods (Health)  FairTrade Products (Coffee, Clothing, etc.)  Green (Environmentally friendly, recycled goods including recycled metals)  Ethical Products (produced with specific social standards)

MARKET REALIGNMENT INITIATIVES: Responding to Consumer Preferences WHOPURPOSE Large Companies: Various CSR initiatives. Responsible Jewelry Council (RJC) Code of Practice Various company guidelines and practices; RJC certification system sets a code of practice to guide production and trade for all its members IRMA Standards (Initiative for Responsible Mining Assurance) Ensure through a system of certificates that all shipments of rough diamonds are conflict-free FairTrade Standards (FLO) (FairTrade Labeling Organization) Support sustainable development of small-scale producers and agricultural workers in world’s poorest countries

MARKET REALIGNMENT INITIATIVES: Responding to Consumer Preferences WHOPURPOSE FSC Certification (Forestry Stewardship Council) Forest certification and labeling system for paper and wood products that come from responsibly managed forests, and verified recycled sources Standard Zero (Alliance for Responsible Mining, ARM) Supports & enables producers to deliver “fairminded” certified metals & minerals (improved working conditions, environmental mgmt, gender equality, elimination of child labor, benefits to local community, improved governance) MiscellaneousVarious conscientious, green, organic, ethical consumption initiatives; halal and kosher foods: Religious standards relating to food and its preparation Development Diamond Standards (DDS) (Diamond Development Initiative) minimum performance standards in regards to social; econ; environmental; labour; trading and/or governance issues for artisanal diamond mining operations in developing countries.

ETHICAL DIAMOND PRODUCTION Ethical Diamond Production Conflict-Free Diamonds (Kimberley Process) Environmental STANDARDS Social STANDARDS Community Beneficiation KP Conflict-free Certification

DDS: PRODUCING “DEVELOPMENT DIAMONDS” ResponsiblySafelyRespect of Human & Communities’ RightsIn Conflict Free Zones Beneficiation to Communities & Payment of Fair prices to Miners

DDS: PRODUCING “DEVELOPMENT DIAMONDS” Responsibly, means mining that is carried out using methods which minimize harmful effects on the environment, and encourages practices among the miners that promote good community relations and development. Safely, means that mining activities should not endanger the health and well being of miners, diggers, and the community. With Respect of Human Rights, means mining activities should be consistent with the basic rights and freedoms of workers. For example, mining operations should neither involve forced labour nor discriminate among workers on the basis of their gender, tribe etc. Labour rights should also be upheld, including the freedom for workers to organize, and the elimination of child labour. With Respect of communities’ rights means mining activities should respect the culture and heritage of local communities. For example, mining activities should not force communities or individuals off their land. Mining activities should not interfere with the right of local communities to be part of the consultations and decision-making.

DDS: PRODUCING “DEVELOPMENT DIAMONDS” In Conflict-free zones means that mining activities should not be carried out in areas of armed or militarized conflict. With Beneficiation to the community means that individual and small- scale mining operations should promote broad and inclusive consultations for community decision-making on the development priorities to benefit the entire community. These include demonstrable development benefits like infrastructure, schools, wells, roads, providing adequate equipment for artisanal diamond mining, employment and training for artisanal miners on diamond processing activities including diamond valuation, cutting/ polishing, etc, and for environmental remediation. Payment of fair prices to miners means that remuneration for artisanal miners and diggers should be an even-handed reflection of their role in contributing to the diamond value chain. The determination of these prices should be transparent.

H OW DDS C OMPLEMENTS THE OTHER I NITIATIVES 1.Accessible & doable by small-scale and individual ADMs 2.Designed for ADMs who largely operate in the informal sector, without formalized cooperatives as in the case of FairTrade and organic standards 3.Focuses on Social & Environmental Standards, as well as the conflict-free objectives 4.KP WGAAP governments are active & key stakeholders in proactively establishing DDS

DIFFERENT POINTS AT WHICH GOVERNMENT IS PRESENT IN ADM PRODUCTION B EFORE P RODUCTION Regulation Registration of Actors Registration of Sites O VERSIGHT OF P RODUCTION Enforcing health & Safety Respecting Human & Communities’ Rights Increasing Productivity through Facilitation Distribution & Channeling Ensuring the integrity of “development diamonds” throughout the diamond pipeline

C ONSULTATION Q UESTIONS What are the main benefits of Development Diamond Standards to KP WGAAP governments? What is the role of governments in facilitating the application of Development Diamond Standards? Which other government agencies or branches, & stakeholders need to be consulted, in order to establish the Development Diamond Standards?