1. Kimberley Process the Diamond Development Initiative and the Mwadui Community Diamond Partnership
Andrew Bone,
Head of Public Affairs
De Beers Group, External Affairs
CASM
6th annual conference,
12 November 2006
Antsirabe, Madagascar

2. Conflict Diamonds

3. Conflict Diamonds & The Kimberley Process
What are Conflict diamonds?
Conflict diamonds are rough diamonds used by rebels to finance armed conflict aimed at undermining legitimate governments.
Where are Conflict diamonds found?
At its height, the issue centred around African states such as Angola, Democratic Republic of Congo (DRC) and Sierra Leone… these countries are now in the process of post-conflict redevelopment
Today, conflict diamonds are found in northern regions of the Ivory Coast. Liberia, which, while at peace, remains under UN sanctions.

4. Conflict Diamonds & The Kimberley Process
What has been done to stop Conflict diamonds?
The Kimberley Process Certification Scheme (KPCS) imposes extensive legally binding requirements on participant countries to certify that shipments of rough diamonds are free from conflict.
Who is involved in the Kimberley Process?
The KP is composed of 71 Participants, which includes members of the European Union.  KP participants trade approximately 99.8% of the global production of rough diamonds.
Are there still conflict diamonds?
Conflict diamonds still exist in small quantities having been smuggled out of Ivory Coast. UN sanctions prohibit the trading in rough diamonds Ivory Coast and Liberia.

5. Conflict Diamonds & The Kimberley Process
How Does The KP Work?
EXPORTING COUNTRY (must be a member of the KP)
IMPORTING COUNTRY
(must be a member of the KP)
Export
Rough Diamonds
Government
validated KP
certification
Rough Diamonds +
KP Certificate accompanying rough shipment
Resistant to forgery
Permitted to trade, divide or mix diamonds if warranty invoices are issued for each transaction as diamonds pass downstream
Sealed in a tamper-resistant container
Uniquely numbered
Containing data with
shipment contents
Confirm receipt of rough diamonds

6. Conflict Diamonds & The Kimberley Process
What does the KP require of the trade?
Diamond polishers, manufacturers, dealers & retailers
Mining companies & rough diamond buyers
Recipients of rough
Diamonds
Must be KP participants & shipment must come from KP participant country
If a shipment crosses a national border it must be accompanied by a KP Certificate. In turn, the receiving nation must confirm reception
If a shipment is traded within a country it must be accompanied by the System of Warranties declaration
Recipients must keep records of warranties for auditing
Country in which company operates and desired country of export must be KP participants
Must keep auditable records to demonstrate that diamonds were mined or purchased from legitimate source
Need to provide an industry System of Warranties declaration to accompany all transactions
Polished diamonds do NOT need a KP Certificate for export however…
Each sale of polished diamonds requires an industry System of Warranties declaration
Must keep records of warranties for auditing by own accountants
To re-export, recipients must apply for Re-export Certificate and show that all previous transactions were accompanied by a System of Warranties declaration

7. Conflict Diamonds & The Kimberley Process
Who is Involved in the KP?
WORKING
GROUPS
Industry
MINING
SHIPPING
CUTTING &
POLISHING
Technical
Working Group
World
Diamond
Council
KIMBERLEY
PROCESS
PLENARY
Working Group
on Statistics
Civil Society
NGO
Coalitions
Campaign to Eliminate
Conflict Diamonds &
Fatal Transactions
Working Group
on Monitoring
Global
Witness &
Partnership
Africa Canada
COMMITTEES
States/regional economic zones e.g the EU
Selection
Committee
CHAIR
(1 yr term accorded
to 1 country, Chairs until now:
South Africa, Canada, Russia &
Botswana)
45 in total
all representing
themselves
Participation
Committee

8. The Kimberley Process
“The nature of our disagreements is such that the Kimberley Process emerges from them stronger. The nature of the points of agreement is unparalleled, and thanks to them, we are changing the world”.
Mr. Karel Kovanda, in-coming Chair of the Kimberley Process, on behalf of the European Commission, Gaborone Kimberley Process Plenary, November 2006.
“We came to this meeting with deep concerns about the future of the Kimberley Process. We are very pleased with the great amount of progress made in dealing quickly and effectively with serious problems”.
Ian Smillie, Partnership Africa Canada, Gaborone Kimberley Process Plenary, November 2006.

10. Diamond Development Initiative
Where does the DDI fit into the diamond pipeline?
Formal
Mining
Export
Import
Polishing
Manufacturing
Retail
‘Informal’
Mining
KPCS
SoW
DDI

11. MISSION STATEMENT
To gather all interested parties into a process that will address, in a comprehensive way, the political, social and economic challenges facing the artisanal diamond mining sector in order to optimize the beneficial development impact of artisanal diamond mining to miners and their communities within the countries in which the diamonds are mined.

12. Diamond Development Initiative
OBJECTIVES
To gather and disseminate information on artisanal diamond mining.
To promote better understanding of, and possible solutions for:
Government regulation and mining regulation;
DEVELOPMENT: e.g. creation of alternative livelihoods;
Accessible distribution and marketing channels;
Organisational aspects of artisanal production and mining community;
To promote wide participation in the process including governments, donors, industry and developmental organisations.