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Conflict Minerals and
Diamonds
Leonie Kermarrec, Clemence, Helene Gaudin,
Fanta Diop, Doris Kirui, Natalia Fonseca, Laura
Gondelmann
Origins of Conflict
Minerals and Diamonds
Origins Diamond Gold Coltan Solutions
½ carat = $1000-$2000
Diamonds are more expensive than gold
A part of the diamonds are too
small sounexploitable
Diamonds are the hardest
natural substance on
Earth
1 carat cancost $1 million
Diamond Facts
Origins Diamond Gold Coltan Solutions
Diamond Uses
Diamonds are used in:
Industry
Petro chemistry
Surgery
Jewellery
Origins Diamond Gold Coltan Solutions
Diamond Trade History
Antiquity 17th c.:
India
The route to India
From 18th c. 19th c.:Brazil
“Diamantina”
Christopher Colombus
From 19th c. Today:
Africa
Colonialism/Wars
Origins Diamond Gold Coltan Solutions
Diamond - Key Players
The World’s top Diamond
Mining Companies
1. De Beers
2. Rio Tinto
3. Alrosa
4. Harry Winston Diamond
5. BHP Billiton
6. Petra Demonds
Origins Diamond Gold Coltan Solutions
Diamond - Origins of Conflict
The history of De Beers
Creation in 1880
Monopoly in the world (95% of world reserve)
Creator: Cecil Rhodes (British)
Successor: Oppenheimer (German naturalized British)
War to recover Namibia
Origins Diamond Gold Coltan Solutions
Diamond - Origins of Conflict
… diamonds that originate from areas controlled by forces or
factions opposed to legitimate and internantionally recognized
governments, and are used to fund military action in opposition to
those governments, or in contravention of the decisions of the
Security Council.
The United Nations’ definition of conflict diamonds
“
”
1990’s: Conflict Diamonds rose in Central
and Western Africa
Violence, smuggling, worker exploitation,
and environmental degradation
Origins Diamond Gold Coltan Solutions
Minerals - Origins of Conflict
Tantalite
(Ta)
Coltan
Tin
(Sn)
Cassiterite
Tungsten
(W)
Wolframite
Gold
(Au)
1970s: 3Ts enter in the normal used in industry
65% for chemical and metallurgical industry
25% electronical application
5% medical purpose
Today is used all electronic products
Chemical and Metallurgical
Industry69%
Electonical Application
26%
Medical Purpose5%
Origins Diamond Gold Coltan Solutions
Mineral - Origins of Conflicts
Origins Diamond Gold Coltan Solutions
What is in your mobile phone?
Origins Diamond Gold Coltan Solutions
Mineral - Origins of Conflicts
Focus on Coltan in Congo
Democratic Republic of Congo in North and South Kivu
Main issues:
Humanitarian
Crisis
Political
Conflicts
Natural Resource
Exploitation
Origins Diamond Gold Coltan Solutions
Mineral - Origins of Conflicts
Where can Coltan be extracted?
− National parklands
− Forest
− Agricultural land
Why did the conflict start?
− Financing Rwandan Rebel Army
− individual enrichment
Origins Diamond Gold Coltan Solutions
Mineral - Origins of Conflicts
Origins Diamond Gold Coltan Solutions
Gold – Origins of Conflict
Tied to currencies
A reference in stock exchange
Used in jewelry, new technology,
medicine (radiation), Aerospatiale…
Origins Diamond Gold Coltan Solutions
Gold - Key Players
The World’s top Gold Mining
Companies
1. Goldcorp
2. Barrick Gold
3. Newmont
Mining
4. Polyus Gold
5. Newcrest
Gold
6. Yamana
Gold
Origins Diamond Gold Coltan Solutions
Economics of Diamonds
Origins Diamond Gold Coltan Solutions
Market State
Flat Supply Growing Demand
Origins Diamond Gold Coltan Solutions
Supply Chain – The diamond pipeline
65%
Of
the world’s
diamonds
come from
Africa
Industrial vs.
Artisanal
Mining 90%Of
all diamond
pieces cut in
were cut in
Gujarat, India
Key hubs:
Antwerp
Tel Aviv
New York
>50%
Origins Diamond Gold Coltan Solutions
Supply Chain – The diamond pipeline
Origins Diamond Gold Coltan Solutions
Economic Constributions
Direct Economic Contributions
Provides financial security
Employment
Protects the wealth of nations
Indirect Economic Contributions
Forward and backward linckages
Infrastructure, roads
10
million people globally
are supported by
the diamond
industry
Diamond
industry
represents 33% of Botswana’s
GDP and 20%of Namibia’s
GDP
Origins Diamond Gold Coltan Solutions
Social Issues of
Diamonds
Origins Diamond Gold Coltan Solutions
Social Issues
Origins Diamond Gold Coltan Solutions
Diamond used to fuel civil war
Child Labor/Child Soldiers
Brutal Atrocities
Workers Exploitation/
Slavery
Mostly in Africa
Blood Diamond
Origins Diamond Gold Coltan Solutions
Child Labor/Child Soldiers
Easy to manipulate and terrorise
Produce more result
Easy to re-educate and can do any
kind of work they are given
First victim of the civil war
Source of cheap labour
Origins Diamond Gold Coltan Solutions
Brutal Atrocities
Kidnapping
Mass Killing
Torture Rape
Origins Diamond Gold Coltan Solutions
Brutal Atrocities
Origins Diamond Gold Coltan Solutions
Government Violence - Zimbabwe
Origins Diamond Gold Coltan Solutions
Government Violence - Zimbabwe
2006: Discovery of alluvial diamonds in
Marange
• Settlement of artisanal miners, merchant, dealers
• Beginning of violence on workers and thepopulation of Marange
2008: Deployment of the national army at Marange
• Massacres of artisanal miners, dealers, villagers
• The government owns the diamond field
• The government decides to relocate the population to another village
• Villagers protest and try to find an arrangement
2009: The population of Marange is relocated by force to another village
Origins Diamond Gold Coltan Solutions
DIAMONDS
THE DEMOCRATIC REPUBLIC OF
CONGO
SIERRA LEONE
ANGOLA
CENTRAL AFRICAN REPUBLIC
LIBERIA
IVORY COAST
THE REPUBLIC OF
CONGO
Results of Diamond conflicts
Rich mineral resources
Outside formal market
The centre of unsafe, unhealthy
and badly-paid piecework
Economical, political, social and
historical constraint
Civil war
Origins Diamond Gold Coltan Solutions
Loss of Infrastructures
Origins Diamond Gold Coltan Solutions
Dangerous Work Condition
Health
Mining Pits Sex Trade
Health
Origins Diamond Gold Coltan Solutions
Environmental Issues of
Diamonds
Origins Diamond Gold Coltan Solutions
Environmental Issues Impacts
WaterPollution
DeforestationSoil
Pollution
Air Pollution
Loss of biodiversity
Origins Diamond Gold Coltan Solutions
Quiz Time!
1. How much toxic waste do mining corporations dump into oceans, rivers, and lakes around the world each year?
a. 180 million tons
b. 120 million tons
c. 80 million tons
2. On average, how much tons of ore and waste rock is generated by a single wedding ring (18-karat)?
a) 35 tons
b) 20 tons
c) 5 tons
3. How many mines produce 86% of all the toxic waste from mining dumped in the sea?
a. 24
b. 14
c. 4
Origins Diamond Gold Coltan Solutions
Regulations
International Regulations
National Regulations
National regulation are being eroded by amendments and exemptions
2009: US Supreme court vs Coeur D’Alene Mines
Origins Diamond Gold Coltan Solutions
Victor Mine - Canada
Origins Diamond Gold Coltan Solutions
…leach chemicals
into surrounding
water
Waste rock…
…dumped in the
surrounding area
28.7 million tons of rock dug from the ground…
2.5 million tons of rock processed per year
Land Impacts from Canadian Victor Mine
Origins Diamond Gold Coltan Solutions
Noise of the explosives + 60 trucks per day
Easier motorized access
Impact on habitat for woodland caribou and migratory birds
Water table affected : 260,000 hectares surrounding the mine
Wildlife Impacts from Canadian Victor
Mine:
Origins Diamond Gold Coltan Solutions
Economics of Gold
Origins Diamond Gold Coltan Solutions
Market State Stable Supply
Origins Diamond Gold Coltan Solutions
Market State
Inelastic and widely dispersed demand
52%Of gold demand
come from
China and India
alone!
Origins Diamond Gold Coltan Solutions
Supply Chain
Top gold producers:
1. China
2. Australia
3. USA
Origins Diamond Gold Coltan Solutions
Economic Contributions
Direct economic contributions
Provides financial security
Employment
Protects the wealth of nations
Indirect economic contributions
Forward and backward linckages
Infrastructure, roads
70%of total
expenditures
remain in
producing
country
Origins Diamond Gold Coltan Solutions
Social Issues of Gold
Origins Diamond Gold Coltan Solutions
Social Issues - Gold
Origins Diamond Gold Coltan Solutions
Physically demanding work – Involvement of Women
• Guinea: 75% women work in artisanal mining
• Child labor
Low level of occupational safety and health care
Inefficiency in exploitation and processing of mineral production
• low recovery value
Insufficient consideration on environmental issues
Presence of terrorist groups
Exploration Construction Exploitation Closure
Small Scale/Artisanal Mining
Origins Diamond Gold Coltan Solutions
Case Study - Colombia
Origins Diamond Gold Coltan Solutions
GOVERNMENT
BIG COMPANIES•RUCOM
TRADERS•CERTIFICATE:
•JewleryTraders
•Minery Traders
MINES
• ORIGIN CERTIFICATE:
• Legal Mines.
• Artisan Mines VS Illegal exploitation
FEEDBACK
Case Study - Colombia
Origins Diamond Gold Coltan Solutions
Environmental Issues of
Gold
Origins Diamond Gold Coltan Solutions
Toxic mine drainage: the biggest environmental concern
Air and moisture can set off chemical reactions that produce acids
and leach toxic metals
Sulfuric acid, arsenic and copper
Gold extraction significant impact:
Found in rock that contains a lot of acid-generating sulfides;
Produces much more unwanted rock
Environmental disaster
Origins Diamond Gold Coltan Solutions
Mercury
Use of mercury in gold mining
Global health and environmental crisis
Mercury: liquid metal used in artisanal and small-scale gold mining to extract
gold from rock and sediments
The world’s 10 to 15 million artisanal gold miners release about 1000 tons of
mercury
35% 70%Of man-made
mercury
pollution
Of the mercury deposited in the
United States is from
international sources
Origins Diamond Gold Coltan Solutions
Economics of Coltan
Origins Diamond Gold Coltan Solutions
Market State - Tantalum
Ore Pricing Trend: 1995-2015: 2016 Forecast (annualized)
US Dollars Per Pound
Origins Diamond Gold Coltan Solutions
Supply Chain
Of
the world’s
coltan
reserves are
in DRC
80%
Australia
currently
produces
most coltan
Most coltan
refineries
are located
in East Asia
Origins Diamond Gold Coltan Solutions
Supply Chain
Origins Diamond Gold Coltan Solutions
Social Issues of Coltan
Origins Diamond Gold Coltan Solutions
Can you remember what objects are
made in Coltan?
Origins Diamond Gold Coltan Solutions
Who are the primary exploiters of
Coltan in Congo?
Rwanda, Uganda and Burundi
Proxy militias of these countries
“The African World War”
5 million people have
died
directly and
indirectly 90% in
Eastern Congo
Origins Diamond Gold Coltan Solutions
Main Issues
Economic - Labor in mine for local population to survive, child labor
Humanitarian - Sexual violence, child soldiers, disease and malnutrition
Origins Diamond Gold Coltan Solutions
Main issues
Social – Rural health service and schools abandoned, destruction of the
entire society
Environmental - Hunters shooting wildlife
Origins Diamond Gold Coltan Solutions
Foreign Corporate Exploitation
A global denial : national and international
All the industries bear responsibilities
Supply chain
Origins Diamond Gold Coltan Solutions
Case Study VICE
Origins Diamond Gold Coltan Solutions
Environmental Issues of
Coltan
Origins Diamond Gold Coltan Solutions
Case study: Congo
Congo’s Basin rainforest: one of the world’s most threatened ecosystems
Illegal lumbers: forestry operations
Coltan mining is destroying the home of 270 species of animals
Congo’s ecosystems will no longer exist within the next 10 to 12 years
For instance: the Eastern lowland gorilla population
1996: Numbered in the thousands
2013: less than 140 gorillas
440,000 per year3,000
Trees
are cut
down each
day
Origins Diamond Gold Coltan Solutions
Solutions to Diamond
Conflicts• Kimberley process
• Strengths & Limitations
• Other solutions
Origins Diamond Gold Coltan Solutions
An international certificate based system that stems the
flow of conflict diamonds
Came into effect in 2003
So far 75 countries participate in KPCS
By being involved they agree to trade only with other
members
Kimberley Process Certification Scheme
Origins Diamond Gold Coltan Solutions
Participants in the Kimberley process
Official applicants to the Kimberley process
Kimberley Process Certification Scheme
Origins Diamond Gold Coltan Solutions
How does it work?
1. Each shipment in tamper proof container accompanied by KP certificate
2. Certificate must be resistant to forgery
3. Shipment only exported to another KP participant
4 Importing country must check content with KP certificate
Origins Diamond Gold Coltan Solutions
System of warranties
Involves written statements on all invoices declaring that the diamonds being
sold are from conflict free sources
Companies file invoices for annual audits
The following affirmative statement must be provided on all invoices:
“The diamonds herein invoiced have been purchased from legitimate sources not
involved in funding conflict and in compliance with United Nations resolutions.
The seller hereby guarantees that these diamonds are conflict free, based on
personal knowledge and/or written guarantees provided by the supplier of these
diamonds.”
Origins Diamond Gold Coltan Solutions
Summary
Mining Export Import Polishing Manufacturing Retail
Kimberley process System of warranties
Origins Diamond Gold Coltan Solutions
The fact that it exists
Participants can only engage with other participants
Includes NGOs, diamond industry & states
Strengths of KPCS
Origins Diamond Gold Coltan Solutions
Limitations & Challenges of KPCS
It only applies to rough diamonds
Narrow definition of “conflict diamonds” means human rights issues are left out
Issuance of fake certificates
System of warranties can be altered
Consensus decisions means countries can veto
Smuggling of diamonds e.g. Venezuela, Congo Brazzaville
Origins Diamond Gold Coltan Solutions
Other solutions
Diamond development standards - aims to find sustainable methods
Government Policies:
- Clean Diamond Trade Act (US)
- Export and Import of Rough Diamonds Act (Canada)
Origins Diamond Gold Coltan Solutions
Solutions of Gold
Conflicts
Origins Diamond Gold Coltan Solutions
Due Diligence
Guidance for Responsible
Supply Chains of Minerals
Conflict Assessment
Company Assessment
Commodity Assessment
External Sources of
Gold Assessment
Management Statement of Conformance
Supply Chain - Big Scale Production
Invest in new technologies
OECD Gold Supply Chain
Origins Diamond Gold Coltan Solutions
Accurate, digestible information
Securities Exchange Commissions (SEC)
World Trade Organization (WTO)
The Artisanal Gold Council (AGC)
Responsible Jewellery Council (RJC)
Improve awareness
Origins Diamond Gold Coltan Solutions
Green Mining
Is there such a thing as Green Mining/
Responsible Mining ?- Shutting down illegal and unregulated mines
- Choosing environmentally friendly general mining processes
- Implementing recently discovered green mining technologies
- Cleaning up the sites of shut-down mines
- Reevaluating Cut-off Grades
- Research and Development of Green Mining Technology
Origins Diamond Gold Coltan Solutions
Solutions of Coltan
Conflicts
Origins Diamond Gold Coltan Solutions
Should we ban Coltan?
Origins Diamond Gold Coltan Solutions
Publicly acknowledge the link between exploitation of Coltan and
conflicts in the DCR.
Determine collectively or individually a feasible and appropriate
response to this issue.
Employ their influence along the supply chain to conform, ban or
support a regulated coltan industry.
Promote ethical business practices.
Tantalum Industries should…
Origins Diamond Gold Coltan Solutions
Coltan Initiatives
The Dodd-Frank Act
European Parliament Strasbourg May 2015
Why not create a Kimberley project for
Coltan?
Origins Diamond Gold Coltan Solutions
Case Study: LG Electronics
Try not to support armed groups
Ask its suppliers to identify the smelters
The Conflict-Free Smelter programme
Origins Diamond Gold Coltan Solutions
Case Study: LG Electronics
Origins Diamond Gold Coltan Solutions
Thank you Any Questions?
References Originshttp://www.worldbank.org/afr/wps/wp13.pdf
http://edition.cnn.com/2011/12/05/world/africa/conflict-diamonds-explainer/
http://www.diamondfacts.org/index.php%3Foption%3Dcom_content%26view%3Darticle%26id%3D128%26Itemid%3D134%26lang%3Den
http://www.amnestyusa.org/our-work/issues/business-and-human-rights/oil-gas-and-mining-industries/conflict-diamonds
https://www.gov.uk/guidance/conflict-minerals
https://www.globalwitness.org/campaigns/democratic-republic-congo/
http://www.sourceintelligence.com/what-are-conflict-minerals/
http://visual.ly/conflict-diamonds-hitting-stores-near-you
http://www.brilliantearth.com/blood-diamond/
https://www.globalwitness.org/campaigns/conflict-diamonds/
http://www.polinares.eu/docs/d1-1/polinares_wp1_history_minerals.pdf
http://www.techrepublic.com/article/how-conflict-minerals-funded-a-war-that-killed-millions/
http://ngm.nationalgeographic.com/2013/10/conflict-minerals/gettleman-text
http://mappemonde.mgm.fr/num6/articles/art05204.html
http://www.cetri.be/Exploitation-miniere-au-Sud-enjeux
References Economics http://www.diamondshades.com/viewpoint
http://www.bain.com/Images/BAIN_REPORT_The_global_diamond_report_2013.pdf
http://www.debeersgroup.com/content/dam/de-beers/corporate/documents/Sustainability/Sustainability%20Reports/DB_Performance%20Supp_3Oct.pdf
https://www.worlddiamondcouncil.org/download/resources/documents/Fact%20Sheet%20(Diamond%20Mining%20in%20Africa).pdf
http://insightreport.debeersgroup.com/_downloads/pdfs/de-beers-insight-report-2014.pdf
https://www.kpmg.com/ID/en/IssuesAndInsights/ArticlesPublications/Documents/diamond-q4-2014-q1-2015.pdf
http://www.diamondfacts.org/index.php%3Foption%3Dcom_content%26view%3Darticle%26id%3D132%26Itemid%3D169%26lang%3Den
http://www.gold.org/research/social-and-economic-impacts-gold-mining-video
http://www.sourcingnetwork.org/mining-the-disclosures
https://www.unglobalcompact.org/library/1091
http://www.thisisgold.co.za/downloads/finish/4-fact-sheets/13-fact-sheet-august-2014-economics-of-gold/0
http://www.gold.org/gold-mining/economic-contribution/value-distribution
https://www.isf.es/ee/pdf/FFI_20Coltan_report.pdf
www.hcss.nl/reports/download/125/1763/
http://s1.q4cdn.com/038672619/files/Fact-Sheet-Sep-2014_FINAL-v2_v001_t7ur94.pdf
https://www.kpmg.com/ID/en/.../Documents/gold-q4-2014-q1-2015.pdf
http://www.enoughproject.org/conflicts/eastern_congo/conflict-minerals
https://www.fairphone.com/2013/11/08/tin-and-tantalum-road-trip/
References Issues of Diamond• http://www.ddiglobal.org/issues/
• http://www.un.org/africarenewal/magazine/january-2007/conflict-resources-‘curse’-blessing
• https://www.worlddiamondcouncil.org/download/resources/documents/Fact%20Sheet%20(Diamond%20Mining%20in%20Africa).pdf
• http://www.diamondfacts.org/index.php%3Foption%3Dcom_content%26view%3Darticle%26id%3D132%26Itemid%3D169%26lang%3Den
• http://www.irinnews.org/report/91460/central-african-republic-poverty-peril-for-diamond-mining-communities-in-east
• http://www.crisisgroup.org/%7E/media/Files/africa/central-africa/central-african-republic/167%20Dangerous%20Little%20Stones%20-%20Diamonds%20in%20the%20Central%20African%20Republic.ashx
• http://projects.voanews.com/central-african-republic-diamonds/
• http://www.rocketswag.com/travel/africa/congo/Congo-History-And-Diamonds.html
• https://www.youtube.com/watch?v=7rsOhgQq2rM
• https://www.globalwitness.org/reports/diamonds-good-deal-zimbabwe/http://www.theafricareport.com/news-analysis/the-story-of-zimbabwes-marange-diamonds-pollution-politics-power.html
• http://www.dianaprincessofwalesmemorialfund.org/sites/default/files/documents/Case%20Study_Global%20Witness.pdf
• http://www.zimbabwesituation.com/old/july25a_2010.html
• http://edition.cnn.com/2012/10/08/world/africa/ishmael-beah-child-soldier/
• http://ihscslnews.org/view_article.php?id=283
• http://www.telegraph.co.uk/news/worldnews/africaandindianocean/sierraleone/7936115/Blood-diamonds-and-war-crimes-the-conflict-in-Sierra-Leone.html
• http://www.voicesofyouth.org/fr/posts/blood-diamonds-child-soldiers
• http://www.idexonline.com/FullArticle?id=32952
• http://www.theafricareport.com/news-analysis/the-story-of-zimbabwes-marange-diamonds-pollution-politics-power.html
References Issues of Gold
https://www.gold.org/sites/default/files/documents/WGC172_Conflict_Free_Gold_brochure_0.pdf
http://web.mit.edu/12.000/www/m2016/finalwebsite/solutions/greenmining.html
http://www.goldpriceoz.com/gold-price-per-ounce/
http://www.gold.org/gold-mining/economic-contribution/social-economic-impact
Miniroundtable, Conflict Minerals disclousure requirements, panel experts, oct 2014. www.riskandcompliancemagazine.com
http://www2.epa.gov/international-cooperation/reducing-mercury-pollution-artisanal-and-small-scale-gold-mining
http://www2.epa.gov/international-cooperation/reducing-mercury-pollution-artisanal-and-small-scale-gold-mining
http://www.unido.org/en/what-we-do/environment/resource-efficient-and-low-carbon-industrial-production/watermanagement/mercury/global-mercury-project.html?ucg_no64=1%2FDATA1%2Fdoc%2Findex.php
http://www.unep.org/hazardoussubstances/Portals/9/Mercury/Documents/ASGM/Techdoc/UNEP%20Tech%20Doc%20APRIL%202012_120608b_web.pdf
http://www.oecd.org/investment/investmentfordevelopment/50472027.pdf
References Issues of Coltan
http://makinghistorymatter.ca/2015/04/06/coltan-war-and-the-congo/
http://www.friendsofthecongo.org/resource-center/coltan.html
http://cern-cenco.cd/
http://sharpmagazine.com/magazine/coltan-and-the-congo/
http://acuns.org/wp-
content/uploads/2012/06/RoleofMultinationalCorporations.pdf
https://www.unglobalcompact.org/take-action/action/case-example/114
References Environmental Issues
http://nodirtygold.earthworksaction.org/
https://www.earthworksaction.org/
http://www.miningfacts.org/
http://www.mining.com/
http://www.icmm.com/
http://www.washingtonpost.com/wp-dyn/content/article/2010/09/20/AR2010092004730.html
https://iphoneproj2011.wordpress.com/2011/04/19/coltan-mining-its-environmental-impacts/
http://www.brilliantearth.com/blood-diamond-environmental-impact/
http://www.okinternational.org/mining
https://www.elaw.org/files/mining-eia-guidebook/Chapter1.pdf
References Solutions
https://www.worlddiamondcouncil.org/download/resources/documents/Fact%20S
heet%20(Conflict%20Diamonds%20and%20the%20Kimberley%20Process).pdf
http://www.dtcb.co.bw/kimberly_cert.php
https://www.globalwitness.org/campaigns/conflict-diamonds/kimberley-process/
http://www.kimberleyprocess.com/en/about
http://www.dtcb.co.bw/kimberly_cert.php
Meyer, H. Business, Boycott & Bureaucracy: The Kimberley Process Certification
Scheme and the Global Quest for Conflict-Free Diamonds.
https://en.wikipedia.org/wiki/Blood_diamond
http://www.ddiglobal.org/our-work/development-diamond-standards
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