Tamper-resistant containers for the import and export of rough diamonds
- De Beers only sells diamonds from its own mines so guarantees that its diamonds are 100% conflict free, accounting for around 35% of the world’s supply of rough diamonds.
- Furthermore, the Kimberley Process ensures that more than 99% of the global production of rough diamonds is certified to be from conflict free sources.
- We support calls by the World Diamond Council and civil society for participating Governments to ensure that the Kimberley Process is properly supported and rigorously enforced.
- We recognise that meeting the goal of ensuring that all diamonds are legitimately sourced requires a concerted effort by the governments of diamond producing countries, the diamond industry and civil society.
- We are actively engaged in industry initiatives, such as the Responsible Jewellery Council certification programme, that are aimed at providing consumers with assurances that the diamonds they purchase are legitimately sourced and managed throughout the supply chain.
- De Beers also maintains its own third party verification programme, which ensures that all of De Beers operations, its Sightholders and their contractors, adhere to the Best Practice Principles.
- De Beers has recently launched Forevermark, an innovative diamond brand. Each Forevermark diamond comes with a promise to the consumer of exceptional quality and integrity.
Conflict Diamonds
The United Nations (UN) defines conflict diamonds as “diamonds that originate from areas controlled by forces or factions opposed to legitimate and internationally recognised governments, and are used to fund military action in opposition to those governments, or in contravention of the decisions of the Security Council.”
Conflict diamonds were used by rebel movements, mainly during the 1990s, as a source of funding for wars against legitimate governments in countries such as Angola, Côte d’Ivoire, the Democratic Republic of Congo (DRC) and Sierra Leone.
The Family of Companies works in full compliance with the letter and spirit of all UN resolutions. De Beers guarantees that 100% of the diamonds we sell are conflict free and are purchased in full compliance with national law, the Kimberley Process and our Best Practice Principles (BPPs).
De Beers has played a leadership role in seeking to eliminate conflict diamonds from global diamond flows. We have also actively worked with members to ensure the Kimberley Process is continuously strengthened and that weaknesses identified are rectified through constructive engagement and the lending of our expertise where it is helpful.
Kimberley Process Certificate
The Kimberley Process Certification Scheme
The Kimberley Process was established by the UN, governments, Non-Governmental Organisations (NGOs) and the diamond industry to prevent conflict diamonds from entering the legitimate diamond supply chain. Today, about 99.8% of world diamond production is from countries that participate in the Kimberley Process Certification Scheme (KPCS).
The Kimberley Process and Zimbabwe in 2010
In 2010, KP participants failed to reach a consensus on the export of diamonds from Zimbabwe’s Marange Region. Following a deadlock in the first half of 2010, an interim agreement was reached in July allowing Zimbabwe to export two tranches of production in August and September. However, talks broke down again in November and, as a result, no further exports from Marange were permitted by the end of the year.
Since its inception, the KP has been effective in preventing ‘conflict diamonds’ from being used to fund rebellions against legitimate governments. In recent years, however, the KP has come under increasing pressure to address in-country human rights abuses such as those alleged to have taken place in Zimbabwe. This has not enjoyed the universal support of KP members, some of whom argue that it opens the door for the politicisation of the KP. They argue that Zimbabwe’s treatment by the KP demonstrates this. The Zimbabwe issue is the sternest challenge yet encountered by the KP. Its eventual resolution will clearly have considerable influence in shaping the future of the KP itself.
The KP helps diamond producers to access important consumer markets and to this extent plays an important role in ensuring that diamonds are able to generate revenues to support social and economic development in African producer countries. Thus, while De Beers does not operate in Zimbabwe, we continue to work with stakeholders to resolve the Zimbabwean issue within the framework of the KP
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Requirements for participants
The KPCS is a joint government, diamond industry and NGO initiative that imposes requirements on participants to certify that international shipments are free from conflict diamonds. The KPCS came into effect on 1 January 2003 and requires all participating governments to enact laws and regulations to this effect.
Today, diamonds are one of the most monitored and audited of any natural resource in the world. Under the KPCS, all international rough diamond shipments must be traded in tamper-proof boxes and accompanied by a forgery proof certificate that states they are conflict free.
The certificate is issued by the exporting country governments. Certification is backed by a system of internal controls in the producing countries, as well as those countries that trade, cut and polish rough diamonds.
The System of Warranties
The international diamond industry also developed a system of warranties to support implementation of the Kimberley Process. The Kimberley Process is restricted to the trading of rough diamonds between countries.
The System of Warranties is a business to business scheme that applies to both rough and polished diamonds. It requires companies to implement a system that ensures all invoices for the sale of diamonds, and jewellery containing diamonds, include a written guarantee that the diamonds are conflict free. Records of all warranty invoices given and received must be kept and externally audited on an annual basis.
The Family of Companies was instrumental in developing the system of warranties through its work with the World Diamond Council. The Kimberley Process and the system of warranties are also embodied in the BPPs and our Principles.
Rough Diamonds from our Venetia Mine in South Africa
Recovering from conflict
Evidence demonstrates that diamonds have provided significant economic and social benefits where De Beers operates. We recognise the same has not always been true for some countries home to small-scale informal diamond mining. These countries include Angola, Central African Republic, the DRC, Côte d’Ivoire, Sierra Leone, Liberia, Ghana and Tanzania.
De Beers has exploration operations in Angola and in the DRC. We are taking every precaution to ensure our activities in these countries contribute positively to political stability and development. All operations also comply with our Environment, Community, Health and Safety (ECOHS) Guidelines for Exploration. They are also subject to the BPP Assurance Programme.
The BPPs include criteria relating to the KPCS, anti-money laundering and counter-terrorism financing as well as human rights. We contribute to economic stability through our social investment initiatives in partnership with local stakeholders and NGOs.
In 2000, De Beers established a Diamond Task Force (DTF) to provide technical services to those countries rebuilding their post conflict diamond industries. The DTF facilitates technology transfer and professional cooperation in partnership with stakeholders such as governments, international organisations, NGOs and local communities.
More about the Best Practice Principles>
More about Conflict Diamonds >
Case Study - Liberia >