Trans Hex sells first Laurica mine diamonds
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Nations in line with Kimberley process named
Resources Correspondent
SA DIAMOND mining company Trans Hex said yesterday that it had sold the first diamonds from its Luarica diamond operation in Angola. Also yesterday, Kimberley Process Certification Scheme officials issued a list of countries that were complying with the scheme.
The process was set up to try to end the trade in "conflict", or "blood", diamonds across the world.
Angola is one of the 53 countries that has met the requirements established through the Kimberley process.
During the civil war in Angola, which ended last year, diamonds were used to bankroll the fighting.
Angola is a key example of the countries that the scheme's initiators want to see involved in the effort to monitor more closely diamond mining and trading across the world.
"Angola is an excellent example of how a country, at some point barred from international trade in rough diamond, has moved to a situation today where it has complied with the minimum requirements of the Kimberley process," said Abbey Chikane, South African chairman of the Kimberley process.
Trans Hex said yesterday that it sold 20000 carats at an average price of more than $300 a carat.
The process was initiated three years ago when representatives of diamond producing and trading countries met in a hall in Kimberley.
Kimberley process officials yesterday issued a list of countries that have complied with the minimum requirements of the scheme.
Only two rough-diamond producing countries have not made it on to the list. These are Brazil and Ghana. Both countries failed to get legislation passed on time that would allow for local monitoring of diamond production and trading in their countries.
Being left out of the scheme club could be costly for these countries because trade sanctions will soon be introduced barring countries that are part of the scheme from trading with the countries that have not met the minimum requirements.
Countries such as the US, the biggest buyer of polished diamonds, and those of another major market, the European Union, have complied with the scheme.
India, which is a major centre for polishing of diamonds and therefore a buyer of rough diamonds, has also complied with the scheme.
By the end of August countries that are not accredited with the scheme will be ostracised from the global trade in diamonds. Chikane said, however, that Brazil and Ghana were both working to push through legislation that would see them added to the list of 53 countries complying with the scheme.
Originally 70 countries had said they wanted to be part of the process, but a number had failed to meet the standard.
Chikane said he was happy with how far the process had come.
"We had not expected so many countries to pass so quickly. In June only seven could qualify to participate," he said.
Of the other countries that had not complied with the scheme's requirements none of them actually produced rough diamonds, but until they get accreditation they could not import or export any polished diamonds.
SA will hand over the chair of the Kimberley process to another process member in October.
Aug 01 2003 08:59:13:000AM Julie Bain Business Day 1st Edition
Friday
01 August 2003
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