WDC Conference: Second and Closing Day

On the second and final day of the World Diamond Council (WDC) congress in Catania, delegates heard reports about the Diamond Development Initiative (DDI), issues regarding value notation on the Kimberley Process Certificates, the state of KPCS implementation by participants and the latest activities regarding the movie 'Blood Diamonds'.

Four reports were made to the WDC delegates on Tuesday. Ian Smillie of Partnership Africa-Canada (PAC) opened the day by detailing the activities of the DDI.

He told the gathering that the DDI’s objectives are to gather and disseminate information about artisanal diamond mining. This includes: a better understanding of, and possible solutions for government regulation and mining regulation; distribution and marketing channels; organizational aspects of artisanal production; legitimate and transparent distribution channels; organization among artisanal miners, and free and open markets for artisanally mined diamonds. The DDI also seeks to promote wide participation in the process, including the participation of governments, donors, industry and development organizations.

A steering committee is being initiated to establish DDI as a charitable organization. The committee will also adopt an organizational framework that will allow for complete transparency, thereby avoid any hints of commercial interests. With the World Bank and the Canadian Foreign Ministry as early sponsors, the DDI has several goals for the coming year: to establish initial projects, raise more money, and ensure that the DDI is in sync with the Kimberley Process.

Smillie was followed by Mark Van Bockstael of the HRD and chairman of the WDC technical committee, who discussed possible problems arising from the value notation on the KP certificates. "We know that there is no such thing as the value of a diamond," he told the delegates. As an example he said that in the Republic of Congo, values as low as 5 percent of the real value have been noted on certificates. "That is fraud. We are talking, clearly, about money laundering," he warned.

"Anti-money laundering is the problem we are facing now. The value of exports jumped not due to the existence of more diamonds in the system, but because of the increased value. The figure continued to climb and the money went to the state coffers. This is a better situation."

However, discrepancies in value between noted value and valuations at destination countries are resulting goods being confiscated, resulting in a technical barrier of trade.

With the WTO waiver up for renewal, Van Bockstael suggested that the term 'value' should be replaced by another word on the certificates. "We need to confront customs classifications problems. We are urging the taking care of this. It has the ability of stopping the [Kimberley] Process," he said.

Rory More O’Ferrall, De Beers director external affairs reported on the production of the movie 'Blood Diamonds'. The film does not mention that the industry has addressed the issue of conflict diamonds through the Kimberley Process. "Audience might leave the film deciding to help by not buying diamonds," warned O'Ferall. There is a concern that with screenings of the movie expected in November-December, holiday season sales might be hurt.

O'Ferall suggested embracing the movie and showing how diamonds help Sierra Leone today. Other efforts include trying to get a post script added giving information about the current situation in Sierra Leone and arranging a meeting between actor Leonardo DiCapprio, who stars in the film, and the movie's director, Ed Zwick, with former South Africa President Nelson Mandela.