“Conflict-free” or “Blood”
Diamonds
Unravelling Sierra Leone’s diamond industry
Introduction
Sierra Leone
History & Actors
Content
Diamonds 1935 – 1991
Diamonds 1991 – 2002
Diamonds 2003 – today
Conclusion
1. Introduction
2. Sierra Leone
a. General Diamond Chain
3. History & Actors
a. Diamonds from 1935 – 1991
b. Diamonds from 1991 – 2002
c. Diamonds from 2003 – today
4. Conclusion
2
Thesis
This analysis will show through
defetishising, that the “ethical” commodity
chains of “conflict-free” diamonds
reproduce the former distribution of
benefits and harms between the population
of Sierra Leone in the mining node.
3
Background
Why diamonds?
◦ Violent conflicts
◦ High value
Why Sierra Leone?
◦ 65% of yearly production of rough diamonds from Africa
◦ Financing the civil war
Why the extraction node?
◦ Main source of conflict
◦ “Conflict-free” diamonds not solving conflicts in extraction
Why defetishise?
◦ Defetishise “conflict-free” diamonds “ethical” image of
“conflict-free”
4
Concepts
Fetishism of commodities (Marx):
◦ Exchange of commodities reduce social
relations in production
◦ Producers perception of relations
Conflict diamonds
◦ Diamonds used by rebels Blood diamonds
◦ Conflict-free diamonds = (-) conflict
diamonds
5
SIERRA LEONE
http://new.stellar-diamonds.com/wp-content/uploads/2012/03/sierra_leone_map.jpg
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Sierra Leone
Population: 5.7 million
Areas where can be found covers 20,000 sq
km.
HDI ranking number 180 of 187
20 % of children die before their fifth
birthday
40 % of adults can read and write
2/3 of the people live on less than $ 1.25 a
day
7
THE SIERRA LEONE
DIAMOND COMMODITY
CHAIN
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1) Exploration process
It involves the search for Kimberlites and alluvial
sources using various kinds of technologies
Diamond mining companies and diggers search for
diamonds deposits alike
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2) Mining Process
Different mining
operations employed
depending on the
operator/actor.
Industrial mining using
heavy and sophisticated
equipment
• Artisanal mining involves individuals, families and
communities using simple equipment (shovel, bucket
and sieve) and mostly done on alluvial deposits.
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3) Sorting process
rough diamonds are bought from the mines by big
companies are delivered to sorting experts to be sorted
and valued into different categories for the gem market.
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4) Cutting and polishing
Gem quality diamonds are usually distributed to cutting
and trading centres in Antwerp, India (Mumbai.
Experts cut and polish Rough diamonds into different
shapes.
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5) Jewellery Manufacturing
Companies produce diamond jewellery designed and
commissioned by a retailer or other jewellery designer.
6) Retailing of Jewellery Manufact.
The diamond jewellery is sold to the final consumers.
The USA represents the largest market (50%), followed
by Japan(15%), Italy (5%) and other countries (30%).
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HISTORY & ACTORS
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Diamond in the colonial era (1800-1961)
In 1930, the first crystal of diamond was discovered on
the Gboraba stream in the Kono district.
By 1935, the colonial authorities leased the diamond
fields the colony of De Beers for 99 years for income
tax 27%.
The 1950’s was characterised by illicit mining, illicit
trade and smuggling of rough diamond through
Monrovia, Liberia.
Lebanese and Mandingo traders emerged as the key
players on the illicit.
Alluvial Mining Scheme in 1956, gave indigeneous
miners right to trade and diamond..
15
Post colonial era before 1991
A weak post-independence democracy
was subverted in the 1960s and 1970s by
dictatorship, corruption and despotism.
De Beers was still the key player.
In 1971, the National Diamond Mining
Company (NDMC) took over the
management of the industry from De
Beers.
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Post colonial before 1991(Cont’d)
Lebanese tycoons played a key role in mining
and trade of legal and illegal diamond.
Shrinking export based economy
characterised by increasing Illegal mining,
illegal diamond trade and smuggling across
the country.
From as high as two million carats in 1970,
legitimate diamond exports dropped to
595,000 in 1980 and fell to only 48,000 carats
in 1988.
17
Diamonds from 1991 – 2002: The
Civil War in Sierra Leone
March 1991 RUF launched war from
east of Sierra Leone (border with Liberia)
vs. the government
RUF:
◦ Foday Sankoh (corporal in Sierra Leone army)
◦ Fight for democracy “No More Slaves, No
More Masters. Power and Wealth to the
People”
◦ Allied with Liberia (Charles Taylor)
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The RUF and Diamonds
Why diamonds?
◦ High value
◦ Easy to hide and
smuggle
◦ Alluvial extraction
◦ Smuggling diamonds as tool to weaken
the military reduce protection to
civilians
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What diamonds brought to the RUF
Finance for the RUF
Controlled of major diamond mining
areas
High yearly profit
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Labour conditions in mining for the RUF
Slave labour
Child labour and exploitation
Amputee camps
Women exploited
Bad health conditions
21
22
The Breaking Point - Kimberley Process
Certification Scheme
Initiated in 2000 by South African government and
institutionalised by UN resolution in December
2000
KPCS includes requirements for controlling
rough diamond production and trade:
◦ export, import and internal controls and transparency
of rough diamonds
54 participants, representing 81 countries,
including Sierra Leone since 2003
KP members account for approximately 99.8% of
the global production of rough diamonds
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The Diamond Industry post 2002
artisanal mining dropped from 90% in 2003 to
46% in 2013
legal diamond trade rose from $ 24 Mio. in 2001
to $187 Mio. in 2013 (EU, Switzerland and USA)
diamond export tax increased from 3 % to 15 %
in 2009 for diamonds worth above $ 500,000
artisanal diamond exports are still under major
control of Lebanese, whereas the industry has
found other channels
granting mining licenses is unclear
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“Development Diamond” - Conditions at
the extraction node
Continuous illegal mining, smuggling and child
labour
corruption and unreliable rule of law
environmental and health damage
slavery-type (poor) working conditions
Unequal economic exchange
forced evacuation, relocation and resettlement
lack of community participation and development (no
electricity grid in Kono
increased involvement of armed private security
forces
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Case Study of Koidu Holdings Limited
(KHL)
granted mining rights for 25 years
$ 300 Mio. investment and financial
support from World Bank
Realoctaion of 4,500 people (involvment
of 13,734 people)
2007 and 2012 two people shot dead by
private security forces, while striking over
poor working conditions and forced
eviction
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KHL Impacts
Environ- • Biodiversity loss (wildlife, agro-diversity),
mental • Loss of landscape/aesthetic degradation
• Noise pollution,
• Soil contamination,
• Surface water pollution
• Decreasing water quality
• potential future food insecurity (crop damage)
Health • Violence related health impacts (homicides, rape, etc..)
• No health clinic at resettlement area
Socio- • Displacement
economic • increase in violence and crime,
• militarization and increased police presence
• violations of human rights
• land dispossession
• loss of landscape and sense of place
• no school at the resettlement site
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CONCLUSION
Unravelling Sierra Leone’s diamond industry
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“Conflict-free” or “Blood” Diamonds
The “ethical” commodity chain of “conflict-
free” (certified) diamonds reproduces the
former distribution of social, economic and
environmental benefits and harms, between
the people in Sierra Leone
formalization and certification might even
cover up, new conflicts arising
people in power are still the Lebanese trades
for the artisanal mining and in transparent
licensing by government
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Not just a mere marketing tool
◦ tax increase from diamond exports
◦ Legalising the industry and rise of official
diamond export
“conflict free” certification is a good start,
but by far not enough
◦ it doesn't consider violence, child labor,
extreme poverty, worker exploitation, and
environmental harm
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Sources of Pictures
Page 7: http://www.professionaljeweler.com/archives/articles/2004/nov04/1104dn1.html
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Page 9: http://www.un.org/News/dh/photos/large/2012/January/01-25-roughdiamonds.jpg
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beginning/#.VL-dUS6LI2Y
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Page 23:
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◦triplepundit.com201108photo-essay-diamond-mining-sierra-leone
Page 29
◦http://www.reuters.com/article/2012/04/04/us-sierraleone-diamonds-idUSBRE83311520120404
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sind/48/
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Discussion
Why can't we escape the fetish, even
though people tried????????
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