The kimberley process certification system - KPCS and diamond production changes in selected African countries and Brazil

Eduardo Gomes Dos Santos

doi:10.1590/0370-44672015680024

Abstract

After more than a decade since its creation, the KPCS is undergoing questioning as to efficiency in combating the irregular trade of diamonds, among the countries with significant production for the global market, mainly Angola, the Democratic Re public of the Congo and Zimbabwe. Governments and institutions are considering it to be conducive to serious violations of human rights. In Brazil all activities of the sector have been reduced drastically. It is estimated that there has been a loss in Brazilian production, after implementation of the KPCS rules, in the order of 8.1 million Kts, valued at more than $ 2.0 billion.

Highlights

In the 90’s, the illegitimate trade of diamonds became the main source of financing rebel groups in armed conflicts, especially in Angola, the Democratic Republic of the Congo, Sierra Leone and Liberia, who were involved with this trade to support the rebels in Sierra Leone
Another significant event was related to the United States, which faced problems with the diamond price control exercised by the De Beers Group
The publication directly accused De Beers, which controlled more than 80% of world production; Belgium, which held the capital arising from the trade of diamonds in the world through the trades carried out by Diamond Exchange in Antwerp (Antwerp World Diamond Centre-AWDC) and several other Nations for trade in diamonds produced by UNITA, under UN sanctions

Summary

Introduction

In the 90’s, the illegitimate trade of diamonds became the main source of financing rebel groups in armed conflicts, especially in Angola, the Democratic Republic of the Congo, Sierra Leone and Liberia, who were involved with this trade to support the rebels in Sierra Leone. The industry joined forces with Governments and civil society organizations to form an initiative which culminated in the creation of the Kimberley Process certification scheme – KPCS or, in abridged form, Kimberley Process – KP, implemented in 2003 At this same time, another significant event was related to the United States, which faced problems with the diamond price control exercised by the De Beers Group. At the end of 2003, after agreement and payment of a fine of $ 10 million, did the company re-enter this important market Note that to this day, the United States represents the largest market for diamonds, which in 2003, in the jewelry sector, its participation was greater than 50% of the world's total, with a value of around $ 15.00 Billion

KPCS and the system of diamond industry warranties

Reserves and production

A brief history

Findings

Discussion

Conclusions