KP Planery Wraps Up, Agrees on Measures to Strengthen Controls

The Kimberley Process 2006 Plenary meeting in Gaborone, Botswana, concluded today (Thursday), agreeing on measures that will further strengthen the Process.  Among the measures are a decision on publishing export statistics, developing government controls, and procedures for dealing with non-compliance by participant nations.

The process, comprising of 71 nations, representatives of civil society, and the World Diamond Council, agreed on the following measures:

• The implementation and development of all recommendations contained in the Kimberley Process Three-Year Review, including the publication of Kimberley Process statistics.
• The development of stronger internal controls to strengthen government oversight of the industry within the next year, as demanded by NGOs and the diamond industry itself.
• Strong measures and assistance from governments and the diamond industry to assist participants with compliance.  In this respect, assistance was extended to Ghana to enable it to strengthen its internal controls, or face a possible loss of its Kimberley Process status.
• The development of formal procedures to deal with significant non-compliance by participant nations.

In addition, it was agreed that the Kimberley Process will continue to cooperate and liaise with the United Nations and other organizations and initiatives, such as Extractive Industries Transparency Initiative, the Diamond Development Initiative and international and local NGOs to address the governance, regulatory, social and development issues facing countries with artisanal diamond mining and develop closer partnerships with the communities affected and civil society at the local level.

“I am pleased that this very important plenary session of the Kimberley Process has been concluded on a positive note,” said out going KP chairman K.G. Moshashane, adding, “We are united in our view that the Kimberley Process is the best mechanism to bring a complete end to the trade in conflict diamonds”.

According to Ian Smillie of Partnership Africa Canada, “We came to this meeting with deep concerns about the future of the Kimberley Process.  We are very pleased with the great amount of progress made in dealing quickly and effectively with serious problems.”

Eli Izhakoff, Chairman of the World Diamond Council, said WDC members are providing technical expertise to a number of countries to assist in full implementation of the Kimberley Process, adding that he applauds the actions of governments in strengthening the Kimberley Process to eradicate, once and for all, the trade in conflict diamonds.

In 2007, Karel Kovanda from the European Commission will assume the Chair.  India was elected by consensus to the post of vice-Chair.

Following is the final Communique:

1. The Kimberley Process met November 6-9 in Gaborone, Botswana, at its annual plenary and approved a plan to help Ghana strengthen its internal diamond controls or face a possible loss of its Kimberley Process status.  A special Kimberley Process review mission will visit Ghana in three months to review progress.  
   
   The plenary addressed findings of the Kimberley Process review visit to Ghana and reports from a United Nations’ Group of Experts on C?te d’Ivoire that diamonds mined in the rebel-held territory are entering international markets through Ghana. The plenary heard reports from its Special Envoy to Ghana, its review visit leader, a representative from C?te d’Ivoire, and U.N. and Kimberley Process experts who visited C?te d’Ivoire in April 2006. The plenary concluded that there may be credible indications that Ghana has not complied with its Kimberley Process obligations.  Plenary decided that Ghana must take immediate steps to ensure that Ghana export only Ghanaian diamonds.  The plenary agreed to send a review mission to Ghana in three months to verify compliance.  Ghana officials committed to take appropriate measures to maintain the integrity of the Kimberley Process.
   
   
2. The plenary endorsed the conclusions of the Third Year Review of the KPCS prepared by the ad hoc Working Group adopting 46 recommendations to strengthen the Kimberley Process.  The plenary agreed to: publish the names of participants which habitually fail to submit statistics; highlight requirements related to illegal shipments; develop proposals related to interim measures including possible suspension in cases of significant non-compliance; and the creation of the Working Group on Artisanal-Alluvial Production.  The plenary agreed that four other issues would  receive priority attention in the year ahead: funding and resource requirements; improving statistical data gathering and analysis; effective and credible government oversight of industry; and the treatment of illegal shipments.
   
   
3. Responding to calls from participants, civil society and the World Diamond Council, the plenary agreed on stronger internal controls standards for participants which produce, trade, cut and polish diamond. These measures offer clearer guidance on implementing effective controls from mine to export and include stronger government oversight of the diamond industry, including spot checks of industry compliance.
   
   
4. The plenary called for a review mission to Venezuela to investigate compliance with Kimberley Process obligations.
   
   
5. The Working Group on Statistics (WGS) reported that the Kimberley Process in 2006 monitored $37.6 billion in rough diamonds exports representing more than 500 million carats of rough diamonds.   Participants issued 59,000 certificates to accompany those shipments. The WGS reported that participants are reporting data regularly and the quality of the data and the analysis has improved. 
   
   
6. The plenary endorsed the concept of transparency in statistical reporting by approving the immediate release of Kimberley Process summary data on trade and production, by value and volume, and certificate counts for 2004 and 2005 data. 
   
   
7. The Participation Committee welcomed New Zealand and Bangladesh as new participants in the Kimberley Process in 2006 bringing to 47 the total number of participants representing 71 countries (including the 25 members of the European Union represented by the European Commission).  Seven countries are seeking participant status.  The committee invited seven other countries in 2006 to consider joining the Kimberley Process. Observers from Liberia, Mali, Mexico and the Republic of Congo expressed interest in participating in the Kimberley Process and sent representatives to the plenary meeting.  Liberia reported on progress in establishing a diamond certification scheme to satisfy the criteria of the Kimberley Process as requested in UN Security Council Resolution 1521.
   
   
8. The Working Group on Monitoring (WGM) reported that the Kimberley Process has completed 34 major peer reviews of participants – 15 of those reviews were conducted in 2006.   In total 42 Participants have received or invited review visits thereby meeting the target set out in 2003 that “the largest number of Participants” should be monitored under the Peer Review mechanism. China, Ghana, Brazil, Guyana, Japan and Republic of Korea reported on their peer review visits.  The WGM announced plans for a schedule of peer review including the start of a second round of review visits starting in 2007.  All participants submitted their annual reports on Kimberley Process implementation, which were assessed by the Working Group on Monitoring.  
   
   
9. The Working Group of Diamond Experts (WGDE) reported on preliminary development of “footprints” which characterize diamond production from C?te d’Ivoire.  Further work will be done to develop similar “footprints” for other West African diamond producers.  The plenary requested the WGDE organize a seminar on diamond origin determination.  The WGDE also reported on a thorough geological assessment of the production capacity of the Republic of Congo by the French Bureau de Recherche G?ologique et Mini?re (BRGM.)
   
   
10. The plenary mandated the WGDE to approach the Harmonized System Committee of the World Customs Organization to advance classification issues and prepare a photo table.
    
    
11. Angola was selected to lead the new Working Group on Artisanal Alluvial Production which will address issues of particular concern to alluvial/artisanal producers.  Alluvial-producing countries reported on efforts in 2006 in West and Central Africa and South America.  Brazil agreed to meet with Venezuela to address regional diamond trade concerns regarding internal diamond controls.  Guyana indicated strong interest in participating in the regional meeting.
    
    
12. The Coordinator for Technical Assistance reported on aid and capacity building efforts focused on Sierra Leone, Liberia, Guinea, Mali, the Central African Republic and Tanzania.  The Dubai Diamond Exchange and De Beers are providing training for diamond evaluators from Liberia, Sierra Leone and Ghana.  Canada is providing statistical training for participants. Belgium announced an initiative to launch a comprehensive study to develop an action plan to enhance internal controls and address the problems of small-scale miners.  Other donors were encouraged to provide financial and technical expertise to fellow Kimberley Process participants to help them develop tighter monitoring and control. 
    
    
13. Presentations were made on the Diamond Development Initiative and the Extractive Industries Transparency Initiative. It was agreed that the Kimberley Process will be updated on these and other initiatives, which seek to address the governance, regulatory, and development issues facing countries with artisanal diamond mining.  It also was agreed that the Kimberley Process will develop closer relations with the communities affected and civil society at the local level.
    
    
14. The Kimberley Process Chair's authority was transferred to the European Community for the year 2007.  India was elected Vice-Chair for 2007.   Russia was appointed to chair the Rules of Procedure committee.
    
    
15. The decisions taken by the Plenary will be considered to have been formally adopted once they have been translated into the official languages of the Plenary (English, French, Portuguese, Spanish and Russian), in accordance with Rule 26 of the KPCS Rules of Procedure, and made available to all Participants.