NOSIPHIWO MZAMOMANAGER: Mineralogy

ARE YOUR DIAMONDS CONFLICT – FREE?

THE DIAMOND FACTS

“ The diamond industry is vital to the Southern African economy.” — Nelson Mandela

• 65% of the world’s diamonds come from African countries

• Approximately $8.5 billion worth of diamonds a year come from African countries

• Approximately 5 million people have access to health care due to diamond revenues.

• An estimated 10 million people globally are directly or indirectly supported by the diamond industry.

• Revenues from the diamond industry help provide necessary counseling, testing, education, treatment programs, clinics and hospices for HIV/AIDS patients.

• Conflict diamonds have been reduced since the implementation of the Kimberley Process in 2003.

Source: www.diamondfacts.org

WORLD DIAMOND PRODUCTION AND SALES IN 2009

Source: Kimberley Process Certification Scheme

WORLD DIAMOND 2009 IMPORTS

Source: Kimberley Process Certification Scheme

Where are your diamonds from and what is their history?

WHAT ARE CONFLICT DIAMONDS?

• Conflict diamonds are diamonds illegally traded to fund conflict in war-torn areas, particularly in central and western Africa

• The United Nations (UN) defines conflict diamonds as "...diamonds that originate from areas controlled by forces or factions opposed to legitimate and internationally recognized governments”

• The diamond industry estimates that conflict diamonds represent 4% of the total trade in rough diamonds. Others have estimated that conflict diamonds could amount to as high as 15% of the total trade.

THE KIMBERLEY PROCESS

• Certification scheme to control movement of diamonds across borders

• Runs on consensus only – unique, but fragile too (SA played strong role in creation)

• Conflict and illicit diamonds not the same - KP mandate is ‘conflict diamonds’

• Several working groups making up the KP core; chaired annually by member states in rotation (Israel was the KP chair in 2010 and the current chair is the DRC)

• The Working Group of Diamond Experts (WGDE) represented by the South African Diamond and Precious Metals Regulator, with Mintek participation at their request

• WGDE often asked to review controversial parcels – current decisions based on shape / colour / surfaces : risky and qualitative

• SADPMR-Mintek Diamond Provenance Laboratory aims to develop a forensically sound method for KP and SA

MINTEK DIAMOND PROVENANCE PROJECT

• Diamond provenance seeks to identity the origin of a diamond by comparing diamond characteristics  to profiles for different sources

• Mintek and the SA Diamond and Precious Metals Regulator (SADPMR) have      launched a project in 2009 to study the possibilities of determining the origin of      rough diamonds

• The heart of the project is a new laboratory facility in Mintek's Mineralogy division,  funded by the SADPMR, which is using a two pronged approach by studying the physical as well as chemical characteristics of gem-quality diamonds

• The lab is equipped with a state-of-the art equipment including a Laser Ablation Inductively Coupled Plasma Mass Spectrometer (LA-ICP-MS) for trace element measurements

• Diamond provenance will be useful for the purpose of identifying conflict diamonds

Diamonds are composed chiefly of the element carbon – but can also contain nitrogen and tiny amounts of “trace elements”

Trace elements (TE) that may occur in diamonds

Carbon & Nitrogen

N

TE

N

N

N

C

C

C

C

C

C

C

C C

THE SCIENCE BEHIND…………………DIAMOND THEORY

C

OBJECTIVES OF THE PROJECT

•Build a SADC database from mainly alluvials, characterising shape, colour, surface features, breakage, infrared spectra, trace elements

•Develop a forensic method for diamond provenance, and ascertain if this can be used for discrimination

•Emphasis on real production type samples – gems not coated stones / boarts etc.

•Control ABSOLUTELY the provenance of the samples

•Share information with sample providers and the scientific community

•Build local skills and methods with all interested parties

SAPDMR PERSPECTIVE

Strategic Objectives Diamond Provenance Lab impact

SA resources “exploited and developed in the best interest

of the people of SA”

Illicit trade immediately removes benefit of mining and beneficiation to SA fiscus

and people of the land

KP compliance Greatest weakness, apart from poor import/export statistics, is inability to technically interrogate suspect parcel

Best practise operability Political gain from very public effort to support transparency / governance of

the KP

Hallmarking and branding Source profiling validated by scientific means is an extra buttress to any

hallmark/branded logo

Fair trade While KP may pivot on conflict diamond, illicit (unfair) trade is real area of heat

SA as major diamond hub Technical skills platform to support commercial skills efforts

WHERE ARE WE NOW?

• A standard procedure for diamond characterization has been developed

• Ten parcels of diamonds from various African localities have been fully characterized and the results analyzed

• Indications that subtle but distinct variations can be made between diamond parcels and that homogeneity exists in the diamond parcels

• Extension of the dataset is in progress: only with large numbers of characterized stones can we determine whether diamond discrimination can be a viable forensic process

 

MINTEK GOING FORWARD

• Approach diamond origin in a holistic manner :

• Building a comprehensive database to evaluate the source of diamonds

• Greater volumes of stones from different sources will be used to really comprehensively build up the database

• These will be used to further assess diamond discrimination potential.

• The knowledge gained in this study will be used for application with other conflict minerals

THE SADPMR-MINTEK PROVENANCE LABORATORY

Thank you