The Return Of Blood Diamonds

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First Posted: 06-25-09 12:54 AM   |   Updated: 07-25-09 05:12 AM

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Diamonds

Daniel Howden | The Independent

The leading architect of the international system to stop the trade in blood diamonds has warned that the safety net is close to collapse with governments and the industry failing to act against gross violations.

Ian Smillie, the "grandfather" of the landmark Kimberley Process, that was agreed in response to appalling civil wars in Africa fuelled by illegal gems, said he had "stomped out" on his scheme as it was no longer working.

"It isn't regulating the rough diamond trade," the Canadian expert said yesterday. "It is in danger of becoming irrelevant and it's letting all manner of crooks off the hook."

The Kimberley safeguards came into effect in 2003 and helped restore consumer confidence in precious stones. Today they regulate 99.98 per cent of the rough diamond trade, but if the process loses credibility, experts say criminals will re-enter the trade with conflict diamonds quickly reappearing in shops in London, Paris and New York.

Mr Smillie was one of the authors of the Kimberley Process Certification Scheme (KPCS), the UN-backed agreement credited with breaking the link between the diamond trade and vicious conflicts, mainly in southern and western Africa. His comments came as the 49 members of the Kimberley Process - made up of governments, industry and civil society - met in Namibia with a growing list of concerns.

Top of those is Zimbabwe, where hundreds of diamond miners were massacred by the army as the government effectively militarised a key mining area late last year. Some in the industry have questioned whether Zimbabwe's gems match the definition of conflict diamonds as they are helping to fund a government, not a rebel army, but Mr Smillie rejected this: "They are blood diamonds, they have blood all over them."

Zimbabwe is not alone and a host of other cracks have emerged in the system of safeguards meant to "ensure that diamond purchases were not funding violence". Monitors have pointed to the illegal trade flourishing in Ivory Coast, Guinea, Venezuela and Lebanon.

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One-hundred percent of Venezuela's diamonds are being smuggled, according to the UK-based Global Witness; Guinea has reported an unfeasible 500 per cent increase in diamond production year on year; and Lebanon is exporting more rough diamonds than it imports despite having no local deposits. None of those countries have been suspended from the process and while inspection teams have been dispatched and reports commissioned, no action has been taken.

"The Kimberley Process is always the last to wake up and smell the coffee," Mr Smillie complained. It was claimed that he had "retired" from his role as one of the group's chief monitors earlier this year but the Canadian dismissed this report, saying he had "stomped out". "If it was working I would be there in Windhoek arguing with them or celebrating with them... but governments want to pretend that it is working." He said the mantra of KPCS has become "let's not do anything now" and accused them of "fiddling while Rome burns".

The KPCS is under strong pressure to act against Zimbabwe. "Hundreds of miners have been killed by their own government," said Annie Dunnebacke, lead campaigner from Global Witness. "How can that country still be part of the Kimberley Process? What's the point of having a stick if the stick is never used? Zimbabwe should be suspended."

The Namibia meeting which ends today has agreed to send an inspection team to the troubled southern African nation next week but it's unlikely they will be given serious access to the Marange area where the killings occurred. Inspectors have privately admitted that people they want to interview have been arrested or intimidated already.

Global Witness and Mr Smillie's Partnership Canada-Africa NGO were among the pressure groups who put blood diamonds on the agenda of the UN Security Council in 2000. At that stage rough gems were helping to pay for vicious civil wars in Sierra Leone, Liberia and Angola that cost hundreds of thousands of lives.

A UN resolution in December 2000 launched the Kimberley Process, and it was signed three years later. On its own website the organisation trumpets its success: "Diamond experts estimate that conflict diamonds now represent a fraction of one per cent of the international trade in diamonds, compared to estimates of up to 15 per cent in the 1990s. That has been the Kimberley Process's most remarkable contribution to a peaceful world."

The key to that success was ensuring that it reached all countries involved in the trade. Its future depends on ensuring there are no grey areas for blood diamonds to exploit. "Diamonds travel quickly," explained Mr Smillie.

The consequences of a collapse of the Kimberley Process would be twofold, he warned. "The diamond trade would go back to its criminal past and rebel armies would have no problem finding buyers for their blood diamonds. The potential for diamonds fuelling conflict would be back," he said.

Read more from the Independent.

Daniel Howden | The Independent The leading architect of the international system to stop the trade in blood diamonds has warned that the safety net is close to collapse with governments and the indu...
Daniel Howden | The Independent The leading architect of the international system to stop the trade in blood diamonds has warned that the safety net is close to collapse with governments and the indu...
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I don't know what I can do about this. I can't afford even the smallest diamonds; not buying illegal diamonds isn't going to be helpful from me. What groups can I join? What efforts can I make? If nothing else, who can I give money to "...in support of..."? I don't know what to search for on Google, I don't know who how the average Jane can make a difference in something that is so horribly consumer-driven?

    Favorite    Flag as abusive Posted 04:52 PM on 07/04/2009
- NPA I'm a Fan of NPA 5 fans permalink
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The myth that gold, diamonds, and other precious metals are "rare". Then why does every jeweler in every strip mall and mall around the world full of this stuff? Conspiracy to keep the public buying.

    Favorite    Flag as abusive Posted 04:58 PM on 06/25/2009

gold is relatively rare when compared to other precious metals like Aluminum and Iron

    Favorite    Flag as abusive Posted 05:29 PM on 06/25/2009
- gabberwok I'm a Fan of gabberwok 3 fans permalink

Gold and other metals can be kind of rare. Diamonds are about to become as common as glass... There are already methods to manufacture real diamonds, the only way to distinguish manufactured diamonds from "natural" diamonds is that the real diamonds tend to be TOO perfect and the natural ones have minute imperfections.

With a little more research, it will be possible to make diamonds completely indistinguishable from "natural" diamonds, at which point a diamond will only be worth as much as it costs to make it, scarcity will no longer be a factor at all. (Most of the current scarcity is artificial anyway, since one company controls most of the diamond supply they can hoard it to raise the price artificial­ly.)

    Favorite    Flag as abusive Posted 05:48 PM on 06/25/2009
- norkas I'm a Fan of norkas 27 fans permalink

One person here is busy promoting the diamond businees that should be obvious who it is.

Please tell us about the multi billion dollard fraud that was covered up with consumers were bilked out of billion and over paid up to 400% on diamonds.

Please explain how De Beers continued to support those that comyyed this billion dollar fraud and prospered .

    Favorite    Flag as abusive Posted 06:59 PM on 06/25/2009
- gobeavs I'm a Fan of gobeavs 8 fans permalink
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We need to also look at China and Russia.
Word on the street is, they are combining forces to buy up mineral and oil rights all over Africa.
Heck China purchased oil leases in Iraq

    Favorite    Flag as abusive Posted 04:37 PM on 06/25/2009
- norkas I'm a Fan of norkas 27 fans permalink

Here is what i do not understand after many years of the civil war being over with which maimed and killed many children and others these IDIOTS make the Kimberly process that mostly the biggest criminals of a multi billion dollar fraud promote.

The GIA was bribed by many of the big supporters of the Kimberly Process and De Beers new about the fraud and most of there best clients were involved in payoffs for better dimaond grading reports from the GIA.

Legit diamond manufactures has to close up factories becaue the people bribing were able to pay 25% to 50% more for the rough so honest hard working people could not compete with the bribers.

Many of the bribers were De Beers clients and ket the rough diamond sky high for De Beers because they would compete with the other bribers for rough driving the prices up and getting diamonds grads that were foolish and not even close to the real grade.

De Beers benifited from this and diamond wholesalers were driven out of business or did only a fraction of business of what they could of.

Consumers were bilked out of billions over paying 30% - 200% and more for false grading reports.

The same large group of people bribing also bribed to pass TREATED diamonds through the GIA getting natural reports and seeling the treated diamonds for 200%-300% and more they what they were woth bilking many of their hard earned money and selling a treated fraud.

    Favorite    Flag as abusive Posted 05:06 PM on 06/25/2009
- norkas I'm a Fan of norkas 27 fans permalink

The GIA stands for Gemological Institute of America they are the number one diamond grading lab in the world. They allowed consumers to be defrauded for billions of dollars for false and bribed grading reports

    Favorite    Flag as abusive Posted 05:11 PM on 06/25/2009
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Please, blood diamonds haven't "returned", they've still been an issue. It's just that it's not viewed as important, especially by the consumers of diamond rings and such.

    Favorite    Flag as abusive Posted 03:45 PM on 06/25/2009

THE RETURN OF BLOOD DIAMIONDS;
They never left they the continued rape of Africa for its resources.

    Favorite    Flag as abusive Posted 03:18 PM on 06/25/2009

The Kimberly scheme is no more than a monopoly that enforces artificlly high prices for diamonds.

    Favorite    Flag as abusive Posted 03:14 PM on 06/25/2009
- luvronpaul I'm a Fan of luvronpaul 4 fans permalink

How to we help bring an end to this vio!ence? We need to curb our insatiable desire for diamonds and stop supporting Debeers.

    Favorite    Flag as abusive Posted 02:34 PM on 06/25/2009
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http://www.idexonline.com/image_bank_banners/2004_Diamond_Pipeline.pdf
http://www.diamondfacts.org/

Please get your facts straight.

    Favorite    Flag as abusive Posted 02:36 PM on 06/25/2009

Well, I guess if others are dying for the same reasons, it doesn't matter.

    Favorite    Flag as abusive Posted 02:53 PM on 06/25/2009
- DivideZero I'm a Fan of DivideZero 2 fans permalink
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Well I can just as easily link to the website for the Zimbabwean Government where it says they're not killing people. You linked to industry trade websites. Of course they're going to say what they say.

It still doesn't explain why Lebanon exports more diamonds than it imports yet has no diamonds in their ground or the 500% increase in production out of Guinea. I think those are 2 smoking guns right there.

It's not news that the Kimberly Process isn't working, Amnesty has been saying this for years. What is news is that it's creator and chief inspector has come out ans said this. Good for him. The more traction in the media this gets, the better.

    Favorite    Flag as abusive Posted 05:09 PM on 06/25/2009
- DSOTM I'm a Fan of DSOTM 87 fans permalink
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DeBears is one of the most corrupt corporations in the world and is not allowed to have an office in the US because they violate US Anti-trust laws.

The biggest joke about diamonds is they are not even rare, DeBears keeps so many of them in vaults to keep their value over inflated.

If DeBears released all of their diamonds into the market place, the demand would be so low that most diamonds would have the same value as quartz.

Buyer beware, you pay about 900% mark-up on every diamond you buy.

    Favorite    Flag as abusive Posted 02:24 PM on 06/25/2009
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You're wrong. The DeBeers vs. US anti-trust lawsuit was settled in April of 2008, and they do not have vaults and vaults of diamonds.

Also the mark-up is around 3.5-3.7. Here's a handy chart that was produced from the papers released during the DeBeers lawsuit:

http://www.idexonline.com/image_bank_banners/2004_Diamond_Pipeline.pdf

Also some facts to help you out: http://www.diamondfacts.org

    Favorite    Flag as abusive Posted 02:36 PM on 06/25/2009
- CigarGod I'm a Fan of CigarGod 112 fans permalink
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I know of a diamond property in the foothills to the east of Chico, California.
It is owned by DeBeers. Their signs are on the fences. When diamonds were discovered, they bought it and shut it down. It has been shut down for several decades at least.

    Favorite    Flag as abusive Posted 04:43 PM on 06/25/2009
- norkas I'm a Fan of norkas 27 fans permalink

De Beers is a joke and when it comes to ecthics they are a bigger joke. Do not sell anyone honest or smart on how honest De Beers is futhermore because there are sheep and lowlifes that represent the diamond industy they allowed them to come in by making sure the laders fough for them

The leaders of the dimond and jewlers industry are whores who have no backbone and did not put up a fight to protect Jewelers across America and wholesaler­s..

    Favorite    Flag as abusive Posted 05:21 PM on 06/25/2009
- nomorefed I'm a Fan of nomorefed 3 fans permalink

hat tip to http://www.makeitbrief.com/avupq for the good articles

*****
Glass-Steagall Act
A 1933 act that prohibited commercial banks from undertaking investment banking activities such as underwriting the securities of private corporations. The legislation was passed to keep banks from entering into nonfinancial businesses (for example, owning corporate stock) and more risky activities. The Glass-Steagall Act was repealed in 1999. Also called Banking Act of 1933.

    Favorite    Flag as abusive Posted 01:34 PM on 06/25/2009
- Dragash I'm a Fan of Dragash 9 fans permalink
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Um...Dear Daniel...y­ou don't perchance represent the New York-Antwerp diamond merchants cartel, do you?

    Favorite    Flag as abusive Posted 01:02 PM on 06/25/2009
- Kassandra I'm a Fan of Kassandra 98 fans permalink
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Now, that's a BAD diamond! Look at all that carbon in it.
No, not ALL diamonds are "blood diamonds" GAD

    Favorite    Flag as abusive Posted 01:01 PM on 06/25/2009
- joyf1 I'm a Fan of joyf1 18 fans permalink
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That's what I thought!! That's not even promotional grade!

    Favorite    Flag as abusive Posted 01:21 PM on 06/25/2009
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Well if you want to promote bad diamonds..­.. @_@

    Favorite    Flag as abusive Posted 01:50 PM on 06/25/2009
- globality I'm a Fan of globality 19 fans permalink

All diamonds are blood diamonds.

They want to control the cartel so that Israel and South Africa can keep control.

There are hundreds of wharehouses full of diamonds, plus they can now make diamonds just as good without the horrible stories of mining, corruption, etc..

Boycott diamonds don't be a sheeple

    Favorite    Flag as abusive Posted 11:48 AM on 06/25/2009

I totally agree. Ladies, owning a diamond does NOT make you special when everyone else has fallen prey to the same line of brainwash. Please seek alternatives. Be special because of the gifts you bring to the world! Make your vows "forever" because you actually plan on working at the marriage.

    Favorite    Flag as abusive Posted 12:26 PM on 06/25/2009

Lonsdaleite > Diamond :D

These days the diamond means little, huge rocks are exchanged for marriages that don't last. If you "love her" or "love him" give them a lifetime of happiness, a shiny lattice of carbon isn't gonna do it for you.

    Favorite    Flag as abusive Posted 12:36 PM on 06/25/2009
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Agreed, but if they want a diamond then what's stopping them from purchasing a diamond that they know isn't a blood diamond. Hell, the last time there was a massacre in Canada was sometime in the 1800s in Quebec, and it definitely wasn't about diamonds (Yay! Religion!)

    Favorite    Flag as abusive Posted 01:43 PM on 06/25/2009
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WOW, wharehouses full of diamonds? You haven't been watching too much Moulin Rogue lately and mixed up the Diamond Dogs with diamonds?

Israel isn't even in the top ten of diamond production, much less second place, oh and South Africa is in 4th place!

Here, check out this chart, all of the data on it was based on the numbers uncovered in the DeBeers anti-trust case with the US that has been settled:

http://www.idexonline.com/image_bank_banners/2004_Diamond_Pipeline.pdf

P.S. For those of you who don't know Alrosa is the National Russian Company for Russian Diamond Production. They're the big kid in Industrial Diamonds, but also produce gem grade diamonds.

    Favorite    Flag as abusive Posted 01:49 PM on 06/25/2009
- Malkin71 I'm a Fan of Malkin71 26 fans permalink
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Are you a diamond miner?

There are lobbyists who are not as tirelessly dedicated to their causes...

    Favorite    Flag as abusive Posted 07:45 AM on 06/26/2009

I might be mistaken but I don't think the Debeers family is actually involved in the business anymore. Didn't they sell and the buyer just kept the name?


Either way, Moissanite is much prettier than diamonds and it's man made. It's also less expensive and almost as hard as a diamond. It'd be my choice of 'bling'.

    Favorite    Flag as abusive Posted 11:43 AM on 06/25/2009

Double post. Doh!

    Favorite    Flag as abusive Posted 11:44 AM on 06/25/2009
- joyf1 I'm a Fan of joyf1 18 fans permalink
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Yes, they are but not completely. They control a little over 50% of the supply.

    Favorite    Flag as abusive Posted 01:25 PM on 06/25/2009
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Here's are some facts compiled into a handy chart from the papers released during the DeBeers vs. US anti-trust lawsuit that was settled over a year ago:

http://www.idexonline.com/image_bank_banners/2004_Diamond_Pipeline.pdf

DeBeers controls less than 40% of the diamond production and MOST of that comes from deals they have with the countries that produce for them and keep a big chunk of the profit (Botswana).

    Favorite    Flag as abusive Posted 02:39 PM on 06/25/2009

I might be mistaken, but I don't think the Debeers family is even involved in the business anymore. Didn't they sell and the buyer just kept the name?


Either way, Moissanite is so much prettier than diamonds and it's man made. It's less expensive and almost as hard as a diamond. That'd be my chice of 'bling'.

    Favorite    Flag as abusive Posted 11:39 AM on 06/25/2009
- JScott I'm a Fan of JScott 20 fans permalink

Nice to look at but digusting to own. Of course the rich who buy em are cluless or don't care---apa­lling!!!!!­!!!

    Favorite    Flag as abusive Posted 11:37 AM on 06/25/2009
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Obviously, because the KPCS is only following their rules and going through their process to determine if these countries have acted illegally. Smillie's angry because things aren't moving fast enough for him.

I find it funny how people can claim that the rich are clueless - because to become rich you have to be clueless..­.?

note: I'm firmly stuck in the middle-middle class.

    Favorite    Flag as abusive Posted 01:39 PM on 06/25/2009
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