Diamond black market not stamped out

JOHANNESBURG – A black market in diamonds continues despite a certification programme intended to stamp out a trade that fuelled civil wars, the head of diamond giant De Beers says.

In a tough speech at the World Diamond Congress in Tel Aviv, De Beers chairman Nicky Oppenheimer said some diamond traders were still buying uncertified rough diamonds in West Africa and many jewellery stores were not tracing the source of gems. Trade in these stones helped finance civil wars in Sierra Leone, Liberia and elsewhere, giving rise to the terms “blood diamonds” or “conflict diamonds”.”We as an industry are failing to live up to our commitments.That is unacceptable,” Oppenheimer said in the speech given on Wednesday.Oppenheimer said the Kimberley Process, launched in 2000 to certify rough diamonds, has been largely successful, but added that a review by the United Nations and the US government later this year would highlight shortcomings.”These include some failure of intergovernmental systems, discrepancies in official import-export statistics and the illegal shipment of rough diamonds from non-participant countries,” he said.While these were mostly issues for governments, the diamond cutting and retail sectors also largely have failed to trace the origins of diamonds, he said.Under the Kimberley Process, participating governments provide certificates for exports of rough diamonds to show they were mined from legitimate operations.De Beers historic Kimberley mine launched South Africa’s diamond rush over a century ago, but was closed last year.Oppenheimer cited a survey by non-governmental organisations (NGOs) that showed many shops in the United States and Britain were not following a voluntary warranty system.”Their survey showed an abysmal ignorance of the system of warranties by jewellers’ store personnel and an appalling low level of compliance by many of the companies themselves,” he said.”Research carried out by the DTC demonstrated that the findings of the NGOs were very largely correct.”De Beers marketing arm, the Diamond Trading Company (DTC), accounts for sales of around half of the world’s diamonds.The Oppenheimer family owns 40 per cent of De Beers, mining group Anglo American, 45 per cent and the government of Botswana 15 per cent.Oppenheimer warned of severe penalties for any DTC client caught buying uncertified diamonds, especially from troubled African countries Liberia and Ivory Coast, which remain under United Nations sanctions.”How can any decent member of the diamond industry allow themselves to gain from the misery of others, or turn a blind eye and pretend that they are unaware?” he said.”We owe it to Africa, from whence we have derived so much of our wealth and our comfortable lives.”The issue of conflict diamonds was likely to be highlighted in coming months by the high-profile war crimes trial of ex-Liberian president Charles Taylor and the “Blood Diamond” movie staring Leonardo DiCaprio, Oppenheimer added.- Nampa-ReutersTrade in these stones helped finance civil wars in Sierra Leone, Liberia and elsewhere, giving rise to the terms “blood diamonds” or “conflict diamonds”.”We as an industry are failing to live up to our commitments.That is unacceptable,” Oppenheimer said in the speech given on Wednesday.Oppenheimer said the Kimberley Process, launched in 2000 to certify rough diamonds, has been largely successful, but added that a review by the United Nations and the US government later this year would highlight shortcomings.”These include some failure of intergovernmental systems, discrepancies in official import-export statistics and the illegal shipment of rough diamonds from non-participant countries,” he said.While these were mostly issues for governments, the diamond cutting and retail sectors also largely have failed to trace the origins of diamonds, he said.Under the Kimberley Process, participating governments provide certificates for exports of rough diamonds to show they were mined from legitimate operations.De Beers historic Kimberley mine launched South Africa’s diamond rush over a century ago, but was closed last year.Oppenheimer cited a survey by non-governmental organisations (NGOs) that showed many shops in the United States and Britain were not following a voluntary warranty system.”Their survey showed an abysmal ignorance of the system of warranties by jewellers’ store personnel and an appalling low level of compliance by many of the companies themselves,” he said.”Research carried out by the DTC demonstrated that the findings of the NGOs were very largely correct.”De Beers marketing arm, the Diamond Trading Company (DTC), accounts for sales of around half of the world’s diamonds.The Oppenheimer family owns 40 per cent of De Beers, mining group Anglo American, 45 per cent and the government of Botswana 15 per cent.Oppenheimer warned of severe penalties for any DTC client caught buying uncertified diamonds, especially from troubled African countries Liberia and Ivory Coast, which remain under United Nations sanctions.”How can any decent member of the diamond industry allow themselves to gain from the misery of others, or turn a blind eye and pretend that they are unaware?” he said.”We owe it to Africa, from whence we have derived so much of our wealth and our comfortable lives.”The issue of conflict diamonds was likely to be highlighted in coming months by the high-profile war crimes trial of ex-Liberian president Charles Taylor and the “Blood Diamond” movie staring Leonardo DiCaprio, Oppenheimer added.- Nampa-Reuters

In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch. It’s an essential way to stay informed. Subscribe and join our newsletter community.

The Namibian uses AI tools to assist with improved quality, accuracy and efficiency, while maintaining editorial oversight and journalistic integrity.