Kimberley process helps protect diamond industry

The Botswana government, anxious to protect its diamond industry from the taint of conflict diamonds, has been an energetic supporter of the Kimberley process, aimed at stamping out the unofficial trafficking in the lucrative gems. A global certification system, identifying the origin of all rough diamonds, is the cornerstone of the Kimberley process. Sixty countries involved in the production, export and import, and trade in rough diamonds have signed up to the Kimberley agreement, pioneered by South Africa. "We are Kimberely process compliant," Jacob Thamaga, director of mineral affairs in Botswana's Ministry of Minerals, Energy and Water Resources, told IRIN on Wednesday. "We have to now look at the issue of sustainability, and to make sure that the process achieves what it was intended to achieve. We will not allow conflict diamonds to infiltrate our system." Botswana is the world's largest producer of gem-quality diamonds, in terms of value of output, and the second largest volume producer in the world after Australia. It began issuing certificates at the beginning of last year. The Kimberley certification system is based on national control systems. In the case of Botswana, that is the Precious and Semi-Precious Stones (Protection) Act of 1969, which regulates the purchase of rough diamonds by unauthorised persons. "Our diamonds industry is auditable and diamonds are protected at source, making sure that illegal diamonds are contained," said Thamaga. Diamonds account for around 90 percent of Botswana's exports. Exploration began in 1955 and since then over 100 kimberlite pipes have been discovered, including the Orapa pipe, one of the world's largest. The industry is dominated by Debswana, a joint venture owned equally by De Beers and the Botswana government. Given the slow pace of economic diversification, the government is reportedly concerned that the "blood diamonds" campaign, led by the London-based NGO, Global Witness, could impact on its exports. "Our sales, which are determined by the Diamond Trading Company's sales prospects, are largely dependent on the timing and scale of global economic growth, a recovery in consumer confidence and the level of stocks that the trade pipeline will be comfortable to hold," said Louis Nchindo, Debswana's managing director. "Unlike certain cases, where diamond mining has financed civil wars, the diamonds in Botswana have financed economic growth, and it is this distinction which the government would like to highlight," explained business analyst Leutlwetse Tumelo. Botswana is often hailed as a model of democracy, stability and prudent economic policy in sub-Saharan Africa. "Although conflict diamonds constitute a very small percentage of the global rough diamond trade, they compromise international peace and human security, and hamper economic and social development in affected countries," a statement on the official Kimberly process website notes. "Consumer awareness of the situation led to actions which could have endangered the entire diamond trade, thereby jeopardising the economies of many countries which rely heavily on the diamond trade. This pointed to the need to find a solution which could balance the need to stop conflict diamonds, while promoting diamonds that contribute to economic development," it added.