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Posts tagged ‘car’

Kimberley Process under fire again as watchdog coalition launches boycott

November 18th, 2015

by Greg Klein | November 18, 2015

Angered by the upcoming leadership of the United Arab Emirates, an alliance of watchdog groups plans to boycott the Kimberley Process next year. The Civil Society Coalition made the announcement November 17 at a KP meeting in Luanda, Angola. The UAE, home to the world’s third-largest diamond trading centre but accused of lax policies towards conflict stones, takes over the rotating position of chairperson next year.

Through its diamond certification scheme, the KP works to eliminate the trade in conflict stones that finance rebel violence against legitimate governments. Enforcement is left to its 81 member nations.

Judging by UAE’s favoured status as the go-to place for illicit gold and diamonds, it would appear Dubai is not only a tax-free haven, but an ethics-free haven as well.—Jaff Napoleon Bamenjo,
Civil Society Coalition

“In the last year, repeated concerns have been raised by Partnership Africa Canada, Amnesty International, the United Nations Panel of Experts on the Central African Republic and others about negligent import controls that allow illicit diamonds from conflict areas such as the Central African Republic to enter the legitimate supply chain,” Civil Society stated.

“Judging by UAE’s favoured status as the go-to place for illicit gold and diamonds, it would appear Dubai is not only a tax-free haven, but an ethics-free haven as well,” coalition representative Jaff Napoleon Bamenjo told KP members. “From the Bangui to Kinshasa to Marange, the UAE’s policy of not checking values on imported parcels, or applying added vigilance on diamonds emanating from problematic areas, has had grave implications on the integrity of the entire diamond chain.”

Bamenjo also accused UAE companies of “the obscene theft of African diamond revenues” by undervaluing imports, then exporting stones at prices 40% higher. “With competing trading centres averaging a 10% mark-up on re-sorted and re-exported parcels, it does make one wonder what Dubai knows about ‘value addition’ that competitors in Antwerp and Tel Aviv don’t know.”

Bamenjo said his group had been working with the KP to prevent the UAE from assuming the leadership role. The KP’s contrary decision “will send a message to the world that the KP no longer has standards, that the lowest common denominator still gets to lead, whatever the reputational and long-term impacts to this initiative.”

The 11-member Civil Society’s founder and co-ordinator is Partnership Africa Canada, whose 1998 study was one of three seminal reports that launched the campaign against conflict diamonds, according to the coalition. The KP was established in 2002.

The boycott follows charges that the KP is being used to certify conflict diamonds from Brazil and allegations from Amnesty International that the process “camouflages” conflict stones from the Central African Republic.

Illicit diamonds

October 16th, 2015

The industry pledges further reform as more accusations hit the Kimberley Process

by Greg Klein

Confidence in the Kimberley Process took another blow with allegations that it’s being used to certify conflict diamonds from Brazil. Environmental degradation and corrupt practices of illegal miners and traders threaten indigenous tribes with “cultural genocide,” journalists Fellipe Abreu and Luiz Felipe Silva wrote in Folha de S.Paulo late last month. An English translation appeared on InsightCrime.org on October 14, two weeks after Amnesty International released a report alleging KP failings in the Central African Republic.

If anything, Brazil’s ban on outsiders mining native lands merely demonstrated the persistence of illegal miners. Having been expelled previously, diamond hunters poured back into the territory of the Cinta-Larga people in the country’s northwest. The rush peaked at over 5,000 miners in 2004, then subsided after natives killed about 29 intruders, Abreu and Silva write. “Since then, mining operations in the area have been closed and re-opened several times.”

The industry pledges further reform as more accusations hit the Kimberley Process

The reporters quote state prosecutor Reginaldo Trindade, who calls the current situation worse than 2004. “In March of this year, there were no less than 500 armed miners who told the Cinta-Larga that they would not leave the indigenous land.” Although natives managed to halt mining in May, “in July the area was retaken by armed miners,” according to Abreu and Silva.

The miners are garimpeiros, mostly working small alluvial operations. Some bring families with them, others bring drugs, guns and prostitutes. Investors supply equipment, bribe state officials and sell the contraband stones, the reporters say.

Collaborating with the illegal industry are Cinta-Larga leaders, the article adds. As for other natives, illegal mining and the sharp practices of those who control it introduce “a systematic process of acculturation. At first grudgingly, the indigenous permitted the mines with conditions, but the large sums of money and their growing consumer habits led to corruption and generated insurmountable debts for the indigenous communities.”

The reporters quote Trindade saying, “The Cinta-Larga people are on the brink of genocide, if not physically, then at least ethnically and culturally.”

Abreu and Silva say the illicit stones can be advertised online, then sold to buyers who sneak into the country on a light plane. Or the diamonds can be smuggled into Venezuela or Guyana. “The advantage in Guyana is that one can get the Kimberley seal—stones that enter a certified legal zone are registered as if they were extracted from there.” Another route to KP certification is to mix the diamonds with those from legitimate mines within Brazil, the reporters allege.

“We have always believed powerful people are involved in the mining,” Trindade tells the journalists. “There are many reports about the involvement of officials from different agencies, politicians, businessmen and even multinationals in [diamond] exploration.”

Obviously there’s money to be made in a country still reeling from the Petrobras scandal, even if few Cinta-Larga benefit. Following the Portuguese conquest, Brazil was the world’s leading supplier of diamonds until the great South African discoveries of the mid-19th century. Abreu and Silva cite highly speculative numbers that claim the native lands might still hold the world’s richest diamond resources.

But if the journalists are accurate about the stones’ journey to market, the article provides another indictment of the Kimberley Process after Amnesty International argued that states and companies use KP “as a fig leaf to reassure consumers that their diamonds are ethically sourced.”

The World Diamond Council is the first to agree that there is more work to be done when it comes to managing the global diamond supply chain. While the vast majority of diamonds contribute a significant benefit to the countries in which they’re produced, as an industry we are committed to staying the course until we reach the goal of zero conflict diamonds.

Amnesty’s claims drew strong criticism, however, with the Antwerp World Diamond Centre challenging the group’s accuracy. The centre said its expert staff conduct thorough checks on all diamonds moving in and out of Belgium. As a result, the AWDC seized two shipments last year from the Central African Republic, focus of the Amnesty report. The companies involved later lost their right to trade in Antwerp, the world diamond capital.

World Diamond Council president Edward Asscher credited KP with removing more than 99% of the world’s conflict diamonds from the market, Bloomberg reported. But in a formal statement the WDC stated it’s “the first to agree that there is more work to be done when it comes to managing the global diamond supply chain. While the vast majority of diamonds contribute a significant benefit to the countries in which they’re produced, as an industry we are committed to staying the course until we reach the goal of zero conflict diamonds.”

The council said it welcomed Amnesty’s recommendations. Among them is a call to broaden the definition of conflict stones, which KP limits to “rough diamonds used by rebel movements to finance wars against legitimate governments.” Diamond Development Initiative executive director Dorothée Gizenga told Rapaport Magazine that Russia and some Asian countries resist broadening the KP’s mandate. “There are those that don’t even want to hear about human rights,” she said.

Next March representatives of the industry supply chain from miners to retailers will take part in a forum on sustainability and responsible sourcing at the three-day Jewelry Industry Summit in New York.

Read Kimberley Process indicted: Tougher measures needed to end conflict diamond trade, says Amnesty International.

UN fails to staunch flow of blood diamonds, gold from Central African Republic

November 5th, 2014

by Greg Klein | November 5, 2014

Even after the Kimberley Process banned diamond imports from the Central African Republic last year, the country exported an estimated 140,000 carats worth $24 million, according to a November 5 Reuters story. As violence escalates again, a UN panel wants mining sites monitored by troops and drones.

Following an outbreak of sectarian fighting in late 2012, Muslim Seleka rebels established regional strongholds. Between December 2013 and last August, about 3,000 people were killed amid reports of looting, kidnapping and rape. Mining licences and commodity taxes help fund the carnage, the UN found.

About 8,000 peacekeepers out of a 12,000-strong commitment are currently deployed in the CAR, Reuters added.

Diamonds are a rebel’s best friend in CAR, as armed groups smuggle blood diamonds and trade them for arms.—Sasha Lezhnev,
senior policy analyst
with the Enough Project

In August at least 25 illegal miners died after an open pit collapsed at or near AXMIN Inc’s (TSXV:AXM) Passendro gold project in the south-central CAR. It was the second such accident in the area since June 2013, when at least 37 people died. AXMIN had already suspended its exploration and pre-development work at the location, declaring a force majeure in December 2012.

“The victims of the deadly collapse were artisanal miners, who use their hands and cheap tools to dig minerals out of the earth in illicit operations that help finance the violent conflicts in the war-ravaged country,” the Globe and Mail reported.

French uranium giant AREVA pulled out of the CAR in 2012, where its 90%-held Bakouma project began test mining in 2010 and was scheduled for full production in 2014 to 2015.

A May report from the Enough Project blamed illicit diamonds, oil and ivory for funding weapons, fuel and poaching equipment.

“Diamonds are a rebel’s best friend in CAR, as armed groups smuggle blood diamonds and trade them for arms,” said Sasha Lezhnev, the project’s senior policy analyst.

CAR diamonds “are sold to traders in the Darfur region of Sudan, as well as Chad, Cameroon and the Democratic Republic of Congo,” the report stated. “The traders circumvent the international Kimberley Process certification scheme and [the diamonds] are likely sold on the world market in the United Arab Emirates, Belgium, India, South Africa, Saudi Arabia and Qatar.”