Zimbabwe authorities surprised many last week when they ordered an   auction of of 300,000 carats of diamonds mined form the controversial Marange diamond field be suspended over suspected rights abuses by the military.

Many of Zimbabwe's diamond fields are still controlled by the military, where soldiers force the local residents to mine the precious gems. 
Global Witness, a UK-based human rights group that monitors  the exploitation of natural resources, welcomed the decision saying the sale would have constituted a violation of international guidelines forbidding trade in conflict diamonds, also known as “blood diamonds.”

According to Global Witness, previous statements by Zimbabwe's Mines Minister Obert Mpofu alleging the military was simply there to maintain order, were “not credible, ” as according to the group's information “It's very likely that (the military) is still forcing local people into mining syndicates." 

President of Zimbabwe, Robert Mugabe 

The eastern Marange diamond fields span some 166.08 acres. Diamond deposits were first discovered there in 2006. Global Witness is pushing for a trade ban on Zimbabwe over the human rights abuse they claim is perpetrated in Marange.

A Kimberley Process investigation found an "unacceptable and horrific violence against civilians by authorities", which according to various publications included forced labor, torture and abuse by soldiers against villagers. The Kimberly Process has given Zimbabwe six months to comply with its regulations before taking additional steps.

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The Kimberley Process has completely revolutionized the diamond industry over the past few years. The process, which allows trading only in diamonds which carry the Kimberley Process Certification – i.e. a certificate that verifies the stones were mined legally – has regulated diamond trade and improved the diamond industry's public image.  Israel, being a diamond industry leader, will assume chairmanship of Kimberley Process  in 2010, and will lead the fight against the use of conflict diamonds.

Israel proved its commitment to legal diamond trade    last week, when the Supreme Court affirmed a decision to confiscate a 14-carat, $71,500 diamond, seized by Israeli customs after it was found to be  lacking a Kimberley certification. All proceeds form the sale of the diamond will be donated to the International Kimberly Fund.

"Public interest calls for firm action in order to eradicate this phenomenon," Justice Edna Arbel wrote in the ruling. "Conflict diamonds have resulted in the gravest expressions of violence for the sake of mere profit, and by way of destroying the economical systems of the counties infected by it."

The 14.32-carat diamond was imported in February 2007 from Mali, a west Africa nation which is not a member of the Kimberley Process; hence the lack of certification. Israeli customs agents refused to allow the gem into Israel and it was deposited with the  Industry, Trade and Labor Ministry's Diamond Controller's Office.

Israel's diamond district. Trade only with members of the Kimberley Process.

In May of 2008, the Israeli company which order the diamond decided to cancel the deal, but claimed the diamond controller refused to release the stone for shipment back to sender; citing it would be a gross violation of Kimberley guidelines, to the extant that it may jeopardize the local diamond industry. The Diamond Controller's Office, however, claimed that it never ordered the diamond be returned to Mali and only gave the company the necessary additional time to try and acquire a Kimberley certificate – which it failed to do. 

The Supreme Court was eventually asked to rule on whether or not the controller's was given to wide a jurisdiction in the matter. It found that the decision was within reason, adding that in the future, should a company prove it was acting in good faith or that the certification failed to come through due to a technicality, it would be able to keep the gem. Should a significant factor be the cause for the lack of certification, the diamond controller would be within his rights to seize the diamond.

The Industry, Trade and Labor Ministry's customs guidelines note customs agents cannot release non-Kimberly certified diamonds. Customs agent can exercise their discretion and release the diamonds to the importer, who must provide sureties that a Kimberley certificate will be obtained. Should the importer fail to provide the certificate "within a time period determined by the comptroller," the latter may confiscate the gems.

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Ivory Coast, or formally "Côte d'Ivoire" in French, is a West African country with population of nearly 18 millions, and it's a minor diamond miner. Recently, it came to headlines with the acquisitions of some countries import diamonds from, although the UN embargo on diamonds from the country.

Among the countries that were mention, you can find UAE, Guinea, Lebanon and Israel. Israel was mention for unknown reason, while in the Israeli Diamond industry does not trade, never did, with diamonds from Ivory Coast, which is not a member of the Kimberley Process. Moreover, in 2010, Israel is to serve as the chairman of Kimberley Process, an entity whose declared mission is to eradicate trade in conflict diamonds worldwide as one of the biggest diamond center in the world.

Israel’s Diamond Controller Shmuel Mordechai told Rachel Lieberman from the Israeli Diamond Institute (IDI): “We categorically deny recent reports according to which Israel deals in conflict diamonds. The State of Israel has never dealt in diamond trade with the Ivory Coast.”

Ivory Coast - Not in our Industry

In response to a report filed by a UN investigative team regarding diamond smuggling into Israel from the Ivory Coast, Diamond Controller and the entity responsible for implementation of the Kimberley Process in Israel, Shmuel Mordechai, stated that the UN team visited Israel twice in recent years. Unequivocal proof was provided that Israel has never dealt in rough diamond trade from the Ivory Coast or any other country that is not a member of the Kimberley Process. 

The U.N. Security Council imposed an arms embargo and other sanctions in 2004 and an embargo on buying rough diamonds in 2005. It is expected to renew the sanctions on Thursday, said the AP report.

Ivory Coast is the world's largest cocoa producer and the government controls the largest share of cocoa production, in the south. In face, the experts noted suspicious cases linking cocoa revenue to the government's purchase of military material.

For now ,experts recommended that the Israeli government investigate the possible involvement of Israeli nationals and companies in the illegal export of Ivorian rough diamonds, and they called on Lebanon and the United Arab Emirates to regulate and monitor diamond polishing activities to deter the illegal import and processing of stones from Ivory Coast.

The experts also called on Guinea to ensure that Ivorian diamonds don't infiltrate their own production, and they urged Liberia to investigate Liberian companies suspected of violating the embargo.

Stay tune with IDI's blog because next time – I'll be reporting live from the international minerals trade show (Berlin – Mineralen) in Berlin, Germany. Live twitts and original pictures of the pieces will take place!

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