During the decade-long civil war in Sierra Leone, the Revolutionary United Front (RUF) rebel army committed widespread atrocities against innocent civilians, drawing global condemnation by governments, human rights groups, and concerned citizens. The RUF was partially funded by the country’s diamond resources, bringing the issue of conflict diamonds in Sierra Leone to world attention in the late 1990s. Meanwhile, similar diamond-funded conflicts were being waged in Angola and the Democratic Republic of Congo. This unacceptable situation led to the Kimberly Process for certifying diamonds from mine to market, which was implemented in 2002. And with the signing of the Lomé Peace Agreement between the Sierra Leonean government and the RUF earlier that year, peace has returned to the country.
In August 2006, G&G contributor Ric Taylor traveled through the Sierra Leone diamond mining areas of Koidu, Tongo, Kenema, and Bo, some of which were once controlled by the rebels. He saw no evidence of continuing conflict, and residents and journalists in these areas confirmed that there is no desire to return to war. In the town of Koidu, in the diamond mining district of Kono in eastern Sierra Leone, one can still see the bare walls of buildings that were looted and burned, but many others have been rebuilt and have roofs of corrugated metal or plastic sheeting. There are several large new mosques that were built with donations from Pakistan.
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Figure 1. Most diamond mining in Sierra Leone exploits alluvial deposits. Here, diamond-bearing gravels are screened by independent miners. Photo by Ric Taylor.
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Once a thriving town, Koidu is still struggling to return to status quo. Today, it houses an office of the Integrated Diamond Management Program (IDMP), formerly The Peace Diamond Alliance, a group organized by the U.S. Agency for International Development (USAID) in 2002 to end the role of diamonds in funding the Sierra Leone conflict. According to Dr. Sahr Tongu, the head of the Koidu office, the name was changed because the organization’s original purpose of ending conflict diamonds in Sierra Leone has been achieved. Now, the IDMP works to develop the diamond industry for the benefit of Sierra Leone’s people. The organization operates a school in Koidu that trains students to grade rough diamonds. In a two-week course, students learn to grade diamonds by shape, clarity, color, and size. Determining value, however, is much more difficult than grading and requires at least three to five years of experience. Fortunately, Sierra Leone’s Ministry of Mineral Resources provides a valuation service for miners in Koidu, which allows them to earn a higher wage.
While most of Sierra Leone’s production comes from alluvial deposits (figure 1), diamonds are also being recovered from three small kimberlite pipes in the Kono district. The major producer is Koidu Holdings, which mines the No. 1 Pipe at Koidu by open-pit methods (figure 2). Development of the mine began in 2002, with the first production in January 2004. Approximately 20,000 tonnes of kimberlite are processed each month, yielding 6,000–10,000 carats, depending on grade variations within the pipe. The largest rough diamond recovered to date weighed 84 ct.
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Figure 2. In 2002, Koidu Holdings began mining this kimberlite pipe, which today produces several thousand carats of diamonds every month. Photo by Ric Taylor.
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According to the Sierra Leone government’s Gold and Diamond Department, there has been a steady increase in the annual legal export of diamonds since 2000. Official figures for 2001 were approximately 222,520 carats; by 2004, exports had increased to nearly 691,760 carats (figures for 2005 dropped slightly to 668,700 carats). Interestingly, the value per carat has risen dramatically. In 2001, the overall value was $116.94/ct.; by 2005 it reached $212.26/ct. According to Frank Karefa-Smart, diamond business advisor to the IDMP, this improvement in value and total exports is due to the fact that higher-quality diamonds that were once smuggled out of the country are now exported legally.
The possession of rough diamonds is strictly controlled, and three different types of licenses are required for their handling. A mining license allows miners to dig for diamonds but not to buy them from other miners. A dealer’s license is for those who buy from the miners, but it is not sufficient to export the stones; this requires an export license, which costs Sierra Leoneans $40,000 (U.S.) a year. Foreigners who purchase diamonds in Sierra Leone can export them using a local exporter’s license for a fee of about 1.5% of the government-declared value.
Diamonds are evaluated for export at the Gold and Diamond Department, which assesses a 3% export tax (based on the value of the diamonds on the international market). The stones are then packaged and the paperwork completed according to the Kimberly Process.
Peace has been restored in Sierra Leone, and the Kimberly Process seems to be effective in bringing Sierra Leone’s diamonds into legal channels. However, further development at the mining level is an important next step in bringing economic benefit to the people who need it most.
Ric Taylor
GIA Education
Carlsbad, California
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