Purchase A Diamond That Makes A Better World
A natural diamond represents a highly symbolic expression of love and commitment. Yet many people are concerned about the history of the diamond trade, and its ties to regional conflicts. People want their diamond not only to be ‘conflict free,’ but also to be worthy of its symbolic value.
Yet complex sourcing issues in the diamond sector fuel misleading terminology in the market place that makes it difficult to know what one is supporting in one’s purchase. For those who are also motivated by ethical concerns, it is best not to get too caught up in the internet marketing of ‘conflict free’ diamonds.
Every diamond sold claims to be ‘conflict free’ and Kimberley Certified, regardless of whether it was sourced ethically or from a mine that has poor human rights and environmental standards.
The critical issue for someone who wishes to shop their values is tracing exactly where the diamond was mined and cut.
Diamonds From Namibia and Botswana
Namibia is a country about half the size of Alaska, in Southern Africa, bordering the Southern Atlantic Ocean. It is mostly desert and its population of just over two million depend upon its extractive industries, particularly because it has very little arable farmland.
In the past, all diamonds taken out of Namibia were cut in other parts of the world. Now, it is possible to purchase a diamond mined and cut in this economically and politically stable African country with its own organized diamond polishing industry. This ground breaking initiative allows more money and jobs to stay in the local economy, which desperately needs these well paying jobs.
In Namibia, a polishing facility supports over 100 local workers, which is profound in a country with such a relatively small population. In general, workers in the diamond industry earn twice the national salary average.
Botswana, which shares its western border with Namibia, has an even more developed beneficiation program. It is one of Africa’s most prosperous countries, in large part because of its highly developed diamond sector. Localized diamond facilities represent an essential part of Botswana’s economy. These diamonds, once polished, are distributed exclusively through a select group of large jewelry chains.
In both scenarios, companies purchase unpolished diamonds from mines owned by DeBeers. The environmental responsibility of the mine is third and fourth party verified.
In the past, diamond companies have been reluctant to create these types of projects because they require huge new investments in training and infrastructure.
Instead of simple resource extraction, which is what happens in many countries with extensive mineral resources, the diamond sector in both countries represents a functional example of skill transfer, job creation and economic empowerment.
One final note: not all diamonds mined in Namibia and Botswana are cut in those countries. Botswana diamonds are sold only through a few selected jewelry store chains. Namibian cut and mined diamonds are a new initiative with limited channels of distribution at this point.
Diamonds From Canada
Canada’s four large diamond mines are among the most regulated and best run from an environmental standpoint, in the world. There is generally little difference between them. Massive inspections are conducted regularly.
First Nation People of the territories are being compensated by the mines through impact benefit agreements.
Almost all diamonds are gathered in central polishing locations where they are mixed up regardless of their source. Canadian diamonds have a tiny ‘Canada Mark’ that gives you assurance that the gems were actually mined in Canada.
Cutting takes place in third party certified facilities. The companies that run the mines know that their brand image depends upon the assurance of a seamless mine to market pipeline.
Canadian diamonds are heavily marketed as ‘conflict free,’ since they have no ties to regional conflicts or the tragic history of Africa and the diamond trade.
What those who push Canadian diamonds as the perfect choice do not talk about is the infrastructure required to transport millions of gallons of petrol to run the machinery, generators and all the support gear in the arctic tundra, creating considerable disruption to the environment.
These massive strip mines impact what environmentalists call North America’s last Serengeti, yet Canadian diamonds remain a good option. In terms of diamond mining in a sensitive environment, they are as responsible as possible.
The Ethical Choice
Whether you choose to go with African or Canadian diamonds, every diamond has it’s impact. While Africa needs it’s diamond economy more than Canada, some people might be reluctant to purchase a diamond from a company that purchases from a mine owned by DeBeers, even if it is well run.
The critical issue is for you to determine who benefits from the actual diamond by tracing its source all the way back to the mine, through the cutting process.
By using your economic choice to support your values, you will give market incentive for the diamond sector to implement more programs that create benefit in the producer communities that really need economic support. You purchase a diamond that helps to create a better world.
I was just explaining to someone last night that diamonds from Canada are not necessarily a more responsible choice. The Namibia and Botswana programs are two of the best in the industry.
Thanks for posting this information.
The article raises many important points ,and rightly highlights the economic and social benefits that are being derived from the diamond industries in nations such as Botswana and Namibia.
This commitment to Beneficiation is central to De Beers’ business model (as evidenced by the establishment of dedicated Diamond Trading Company operations in partnership with the governements of Botswana and Namibia in order to supply locally mined diamonds to locally based cutting and polishing operations) and we are proud that there is recognition of the progress we have made through these partnerships.
We are also proud of our governance of our mining operations and were pleased to note your reporting of the third and fourth party verification processes we have in place.
It was with some surprise and confusion, therefore, that as I read to the end of the article I noticed your statement that “some people might be reluctant to purchase a diamond from a company that purchases from a mine owned by DeBeers, even if it is well run”.
I was hoping that you would be able to provide me with some understanding of the reasoning behind the unexplained suggestion that there may be an ethical concern with buying a diamond which originated from a De Beers mine.
I would be pleased to provide you with any information that may be useful in facilitating an increased understanding of the importance De Beers places on corporate responsibility and would like to draw your attention to the publication of our 2008 Report to Society (available at http://www.debeersgroup.com/en/Media-centre/Reports/2009/Report-to-Society/ or via link from the http://www.debeersgoup.com homepage). De Beers is proud of its leadership role in the diamond industry and considers also that it leads the business world in the sphere of corporate responsibility as demonstrtated by its commitment to Beneficiation in all of its diamond producing countries.
David, thanks for your comments.
In terms of a customers’ reluctance to purchase from DTC sources, this issue is real, particularly among the demographics of those who might be defined as “progressives” in the US, or “cultural creatives– http://en.wikipedia.org/wiki/Cultural_Creatives”
These are the people that are driving the organic food market and also those most likely to shop their values. This group is highly educated and they know their history. I include myself in this demographic.
Recently, for example, I explained to a friend of mine who is a professor and who did Peace Corps in Africa in the 70s about the diamond business and mentioned that DeBeers has some of the best practices. He was surprised. He said, “DeBeers? You mean, South Africa Inc? I thought they were the right arm of Satan.”
Outside of the jewelry business, and those who do not care about CSR, DeBeers has an image issue.
You can argue that DeBeers was not a big supporter of apartheid because they wanted a vibrant black middle class, which is true, and that they were not involved in the blood diamond tragedy (which goes against what was reported in the news media) but none of these things are going to easily change the perception of your company that was built up over a century.
Now, that you would even raise this issue (that last sentence) illustrates to me that you, along with much of the rest of the jewelry sector, have a huge blind spot.
As Day’s Jewelers have found, there is a huge potential for beneficiation as part of branding… and selling to younger and more educated customers… but who else is getting it? (PS: I can’t I buy from Moti Ganz as the programs in Botswana lay off polishers)
The Blue Sky opportunity is being gobbled up by companies like Brilliant Earth, but last time I looked on their site they were not screaming that their Namibia diamonds as DTC sourced. As far as I know, they are from Finesse, but I could be wrong and if I am, sorry Eric. But I’ll bet you a wooden nickle that those who are marketing Namibia are not going to be screaming DTC sourced.
Recently, I tried to convince such a highly educated customer (a union organizer with roots in Africa) to purchase a Namibian diamond because I think it is the best option out there for ethical diamond sourcing. It is better than Canadian to me because I don’t like what is going on in the NW Territories. (I do know something about DTC’s efforts there to open a new mine and how they were blocked by the courts, but that’s another story). However, back to the subject, this guy refused to do because it was from DTC sources.
This is a problem in terms of going after this new market of people, the Gen X and Millennium customers who are more likely to shop their values and they know their history. The jewelry sector may have a short historical memory, but younger people, my customers and many of the readers of my blog who are on the forefront of these issues do not.
My position is generally is to hold a “radical center” view and support best practices that are moving toward transparency from mine to market.
By the way, what’s your take on Ian Smillie no longer backing Kimberley? To me, that’s one of the biggest stories of the year, but not many people in the trade magazines have even covered it—except for Rap and they gave it a good spin.