Category Archives: News

Conflict Gold to Peace Gold – part 1


Over the next three posts I will be reflecting from my journals on my trip to the Democratic Republic of Congo, where I had been invited by Peace Direct to explore a grass roots idea of using small-scale gold mining as a means of building a peace and reconciliation process. A bold plan in the face of the well recorded troubles.

Anyone who travels in Africa must be blessed with patience and an unswerving belief in the inherent goodness of humanity, not something I believe St Augustine (an African himself) the inventor of the doctrine of original sin had in abundance when he came up with that innately negative outlook. This belief was tested upon my arrival at Entebbe Airport where I was transiting to Bunia in the Eastern Democratic Republic of Congo. The immigration officer retains my passport and allows me the freedom of this singularly underwhelming airport. I then wait for four hours for what is increasingly looking like a mythical representative of the small airline company who will be flying me to Bunia to issue me with my pre-paid ticket. As I sit in almost solitude I have re-occurring visions of scenes of torture and abuse from the film The Last King of Scotland, grateful those days have long disappeared from Uganda. Eventually a lady arrives from the airline company and asks for my passport. For ten heart-stopping minutes the half-dozen immigration officials, who are all busy chatting, half-heartedly move piles of envelopes and papers from one side of their desks to the other, whilst telling me ‘I need to relax’. In this matter of humanities inherent goodness, I am vindicated as my passport turns up from another room, only to disappear again with the airline lady to be shown to another mythological person in an upstairs room.

The plane that will take me to Bunia.

The plane that will take me to Bunia.

After another two hours the small twin prop flight to Bunia dances through the clouds and over a scattering of lakes, rocky hills, bush and forest that keeps my aching body entertained. Bush fire smoke drifts across the landscape telling us the wind direction and that the land beneath is inhabited by, if you believe the popular media myths of the west, bandits, militia and smugglers of conflict gold. A narrative I have been guilty of perpetuating in my career as an ethical jeweller and not without a measure of truth attached to it.

Arriving at the Bunia airstrip is a small education in the challenges the DRC faces on a daily basis. After my passport is stamped with a date stamp similar to the ones you can buy in any stationary store, I collect my bag from the nose of the plane and take it to a room full of cardboard boxes and plastic chairs to be inspected by a customs official in a garish blue and yellow shell suit. As he opens my bag he spots my camera and removes it from its box and in an animated French Swahili diatribe, announces this is not permitted in the country. He declares it is a telescopic camera that can link to the Internet via a satellite and can also be used to film the local underwater wildlife which last appeared in this region during the Jurassic period. Others begin to emerge from small rooms off the main cardboard room and join in what rapidly conflates to a game of pass the parcel amongst eight grown men. Eventually the camera, in the mass confusion disappears into a back room and I am told through Henri Ladyi, the co-ordinator of The Centre for Resolution Conflicts (CRC) that they want a $100 tax to import the camera. I refuse to pay.

As I am clearly no longer part of the discussion I decide to adopt a stance of calm self-preservation, as I recognise I  am going to be here for a long time. I sit down, open my Bible and go into a state of Zen-Christian exhaustive Lectio-Divina. Eventually the commotion attracts the attention of the airport police and the situation becomes further magnified when the location of the camera cannot be determined. What had started as an attempt to bribe a visitor has now become a case of theft. Some one has stolen my camera. The volume increases again to a pitch that would rival Jimi Hendrix’s rendition of Wild Thing at The isle of Wight Festival in 1969, as the airport customs boss now realises that he has an incident on his hands that involves the Police. With the head of Airport Police involved the noise hits a new and more frenzied level. The original customs officer in the garish blue suit, has been found to have stashed the camera in his bag. He makes a statement to the Police and after much ‘tooing and froing’ between officials in the airport the offender turns out to have been drinking on the job and is now pleading to keep his job and not be charged by the Police. The noise has by this stage reached the District Head of Customs who has driven down to the airport to take personal control of what seems to have become a diplomatic incident. At the end of three hours, two police statements later and a very contrite and worried corrupt customs official I am given back my camera by the District Customs Officer in a ceremony that includes a photo shoot, a very formal verbal apology and a letter I have to sign, all during a long handshake. There is nothing low key about my arrival.

Meeting Henri and hearing his story is both inspiring as will as very distressing. Distressing because he like so many in this war torn country he has suffered. Having lost his father to a rebel attack, he joined a local militia in order to protect his family from other similar events. Inspirational because his wife persuaded him to turn from being militia to becoming a peacemaker when she threatened to pack up and leave for her parents. The insecurity of living with violence was too much for her to cope with, especially with a young family. In 2003 he and his family found themselves in the Mukulia IDP camp as they fled the ethnic violence that had erupted at the time. Whilst in the camp he started to work across the ethnic divides and to build a local peace movement by facilitating dialogue, interaction and mutual understanding between historic rival groups.

I am to be based in Bunia for the week, one of the main towns in the Ituri district of Oriental Province. Bunia is the home to the recently re-opened United Nations MONUSCO mission. Re-opened, as a few months ago it was attacked by students from the next-door University as an outpouring of anger and frustration at the unsettling and accidental death of a student at the hands of the UN, which forced the UN to move out of Bunia for a short period of time. My first job is to register at the UN and to receive a security briefing. The guards seem slightly confused as I ask them where to go to register myself for security purposes, but eventually, after visiting three separate offices I am introduced to a man, who points to a map and informs me that the road is ‘green all the way to Aru in the north, anywhere south of Bogoro you will need a military escort and do not head west, (he points to a huge space on the map that is effectively empty), as it is full of poachers and militia’. I am instructed to keep my satellite phone with me at all times and stay in radio contact. I am told as I leave that the current security situation is ‘Calm but Volatile’. I confess to being slightly nervous now as I do not have a satellite phone and I am rather reliant on a mobile phone signal and the wisdom of Henri and team who know how to navigate this region with aplomb. Next we visit the Congolese security service office, where after a hour of French chit chat, we are issued our travel stamp on the requisite document, I am given a lecture by the Chief of Security in why I should not be doing this, and we are sent on our way. My next stop is one of the artisanal mining sites that is part of the peace building process.

FJA’s Greg Valerio talks to Ambassador Gillian Milovanovic – the Chair of the Kimberley Process


Gillian Milovanovic

GV: Can I start by asking what the role of the Kimberley Process is in the diamond industry and specifically what your role is as the KP Chair?

GM: The Kimberley Process Chair organizes the work of the KP for the year, chairs the Intersessional and Plenary meetings, and helps ensure that prior KP decisions are implemented. A main focus of my term as Chair is to provide the full support of the U.S. government to the KP’s ongoing reform efforts, including through consultations with civil society groups, the diamond industry, and participating countries.

Greg Valerio meeting Sierra Leone war victim 2011

GV: Can you ever envisage a day when there will be no conflict diamonds in the diamond supply chain?

GM: The joint efforts of governments, industry leaders and civil society representatives have enabled the Kimberley Process (KP) to curb successfully the flow of conflict diamonds in a very short period of time. Diamond experts estimate that conflict diamonds now represent a fraction of one percent of the international trade in diamonds, compared to estimates of up to 15% in the 1990s. That has been the KP’s most remarkable contribution to a peaceful world, which should be measured not in terms of carats, but by the effects on people’s lives.

GV: What do you think about the relationship between Zimbabwe and China? For many jewelers selling diamonds from Zimbabwe is the biggest threat to our industry. State sponsored oppression being paid for by the sales of diamonds that are then manufactured into jewelry in China and sold to western consumers?

GM: On Zimbabwe the KP Plenary in Kinshasa decided on a way forward for exports from the Marange diamond fields in Zimbabwe.  As Chair, we work to ensure that the terms of the decision continue to be respected. However, the pre-November 2011 impasse in which the KP found itself showed the limitations of the KP and the need for overall KP reform, which the KP itself decided, at the Kinshasa plenary, to begin to address. It is the KP’s decision, by consensus, to review the KP’s core documents and definitions and to evaluate the need for reform, that forms the core of the US Chair’s agenda for our chairmanship.   I visited China as Chair and had excellent meetings with KP industry and government representatives in Beijing, Shanghai and Guangzhou.  China agrees that reform and modernization are needed to deal with future challenges.  China is an active participant in the KP, including in its Working Groups and we encourage China to take an active leadership role in the KP during this period of growth.  China’s diamond market is growing rapidly and industry there is facing enormous challenges.  We look forward to collaborating with China throughout our Chairmanship and beyond.
GV: Can you explain what the deadlock is concerning Human Rights within the KPCS and their inclusion into the definitions of what constitutes a Blood Diamond? Many jewelers fail to understand what the problem is, all they see is bureaucracy and an avoidance of dealing with the truth in Zimbabwe.

GM: The KP was created both to prevent illegal diamond revenues from funding insurgencies against legitimate governments and to ensure the continued health of the market for diamonds worldwide.  The KP’s founders took far-sighted steps to ensure that the diamond resource within their borders would continue to attract customers and provide both much-needed revenues for development and equally needed jobs in many countries around the world. Today we call on KP members to be equally far-sighted in modernizing the KP’s definitions and functioning to ensure that the economies of diamond producers – many of them in Africa— as well as those of cutting and polishing and of consuming countries, continue to benefit from a sound market for their product.  Ensuring that consumers worldwide continue to seek out this exceptional gem stone requires that we all look at and prepare the KP for today’s and tomorrow’s challenges.  If we do so, and do so together, not only will no sector or region be targeted unfairly but all will benefit.

GV: As I understand it, the KPCS is a customs procedure for tracking the flow of rough diamonds around the world. Yet for the jewelers it acts as a  consumer confidence mechanism that helps to bolster the public’s confidence in the diamond value chain. What steps does the KPCS need to take in order to restore jewelers and consumer confidence in the diamond story?

GM: Only rough diamonds are accompanied by KP certificates. Once diamonds are cut and polished, KP certificates are not required to trade them internationally. Moreover, the KP is a tool that currently addresses one specific problem: the use of diamond revenues to fund civil wars. If consumers want to know more about the diamonds they purchase – for example, whether the diamonds were associated with violence or human rights abuses, or have been used to fund corruption or suppression of democracy – then they need to ask tough questions of retailers.

GV: Institutionally what steps do you believe have to be taken to make the KPCS a stronger and more democratic and publicly accountable organization?

GM: The need for an administrative support mechanism, which is much smaller and less complex than a Secretariat, has been identified within the KP for some time, and the full KP Plenary mandated in November 2011 that the ad hoc KP review committee pursue this effort.  We continue to believe that such a permanent support mechanism is needed for the KP to truly serve its membership – and the broader public – and we will work to support the review committee’s engagement with existing international institutions to evaluate options for this.  We’re excited about improving internal communications, creating institutional memory and making the KP website up-to-date with the newest technologies.  We’re also seeking to strengthen cooperation on enforcement and encourage a greater focus on domestic implementation.
GV: As I understand it the KPCS is constituted as a tripartite arrangement between Governments, Diamond Industry and Civil Society. Do these groups have an equal say in the KPCS and if not why not?

GM: Governments, the diamond industry, and civil society make up the KP. All three have valuable roles to play and we seek to harness everyone’s talents to improve the KP.  This is a consensus-based process in which, though only governments have the right to vote in the formal decision-making process, everyone’s participation is needed in the shaping of the consensus and in finding solutions to improve the KP.  The diamond industry and civil society have been an integral part of the KP from its outset. Formally, they are designated as “Observers,” but they take a very active role in the day-to-day work of the KP. Their contributions are essential to the KP’s working groups – where most of the KP’s functioning occurs – and to the peer review system that monitors compliance. As with other aspects of the KP, their role will be one of the topics addressed in the review process being led by Botswana.
 
GV: What is the one thing that the KPCS can do for the small-scale diamond miner who is after all the majority stakeholder (when employment and livelihoods are considered) in this industry and also the most vulnerable to exploitation, corruption and abuse at the hands of rebels or unscrupulous and coercive governments?

GM: KP members, working in the spirit of the KP, have been focused on improving the development outcomes associated with diamond mining, including via a stronger focus on local communities and artisanal miners in producing countries.  KP members worked together to improve artisanal miner registration in Ghana and the Democratic Republic of the Congo. Experts within the KP have enhanced understanding of diamond valuation and improved diamond mining techniques in Sierra Leone and Guyana.  A KP member project has secured land tenure and stable incomes for artisanal miners in the Central African Republic and Liberia.  Most recently, members of the KP banded together to hold a development conference in an attempt to keep all of the players in a holistic mindset, become improving the lives of small-scale miners is a key goal of the KP.

GV: What will be legacy of  the US holding the KP chair be?

GM: Our overarching objective for the year is to achieve an array of reforms to make the KP more effective, efficient, and relevant.  To achieve these reforms, we are promoting open, transparent, and broadly consultative processes.

GV: Thank you for taking the time to talk with me, I trust that some of the structural issues within the KPCS will be resolved at the next full plenary and we will see a stronger system emerge that will restore faith across the entire industry.

Purity of Fairtrade Gold at Risk


I am writing to all the subscribers of my blog to ask them to download and sign (see bottom of blog post for link) an open letter from Ethical Metalsmiths and Fair Jewellery Action in support of the purity of the Fairtrade Fairmined chain of custody on the gold from certified mines.

Currently the Alliance for Responsible Mining and Responsible Jewellery Council are moving towards a partnership that MAY lead to the mass-balancing of certified Fairtrade Gold to RJC members (refiners, jewellery brands etc).

Mass balancing is endemic in the gold industry, a process where by you can mix different sources of gold so that the origin of that gold becomes lost. Currently this practice is not permitted within the spirit of the Fairtrade Fairmined standard.

Ameriko is one of the Oro Verde Fairtrade Fairmined certified miners

The strength of the Fairtrade Fairmined Gold standard has been its purity from source, the excellent standards created by ARM and FLO and minimum price and premium paid to the miners to secure community development. In just one year SOTRAMI, one of the Peruvian certified mines received in excess of £70000 in FT premiums that has gone to education and the creation of a community co-operative store.  The system is working, albeit still small, but growing. For example we are currently putting the finishing touches to a UK and Ireland Fairtrade Fairmined gold campaign that over its three year duration is targeting one ton of FT Gold into the UK by 2015. Fair Jewelry Action and Ethical Metalsmiths are actively working on introducing the certified gold to the USA, as well as Sweden and Holland being the latest countries to adopt the product.

The risk to the system lies squarely in the lack of clarity and transparency around the deal that ARM and RJC are about to do on (the potential) mass balancing of gold from certified sources. As things stand at the moment (and they could change) RJC members could buy from a certified source, call it responsible (which it would be) mass balance it with gold from other large-scale or recycled sources (to increase volumes) and NOT pay the Fairtrade premium. They big companies would benefit from everyone’s hard work and not reward the miners.

Let us be clear and honest. Not all the gold currently being mined from certified sources is being sold into the Fairtrade Fairmined system. This is true. What is also true is that all the certified sources are selling their gold into the normal supply chain regardless. So no miner is stock piling their gold, it is all being sold. The real issue here is not sales of gold, it is that the volume of Fairtrade sales needs to climb and that is a market issue not a gold sales issue.

As the open letter states very clearly;

We actively encourage RJC members to become a part of the FT/FM certification system by purchasing FT/FM gold, paying the FT Premium, and thereby making a positive contribution to future development and security of the certified communities.

If RJC members do this, all is good, volumes increase, miners are rewarded for their diligence in becoming certified and consumers will benefit from being able to buy Fairtrade gold in their jewellery.

If this does not happen and mass balancing takes place through RJC members, the miners will not benefit from premiums, (they will just have different customers), the traders will make more money as they benefit from the volume game, the consumer will be denied choice in the gold jewellery purchase and the possibility of a heavy weight corporate company buying up all the production and denying others the possibility of paying the miners a premium and having access to certified production, becomes a very real possibility.

Therefore I am asking every jeweller, jewellery company, Fairtrade Fairmined license holder, industry activist, NGO and concerned consumer, (if you have not done so already) to sign the Open Letter by downloading it here and then emailing Marc Choyt directly at reflective@cybermesa.com and he will add your name to the growing list (54 jewellers in the first 4 hours) of jewellers from around the world who have a different vision for the future of our industry.

ARM-RJC_Community_Letter_FINAL (Download here).

I want to thank you for your support in this. Rome was not built in a day, but to quote Ervin Renteria a small-scale miners from Colombia and one of the co-founders of ARM, alongside myself, ‘We will keep walking’.