NRCan to oversee rough diamond trade

Under proposed legislation before the House of Commons, Natural Resources Canada would become the Canadian authority for the import and export of rough diamonds, as part of the federal government’s participation in the Kimberley Process certification scheme.

The certification process, which will affect the way Canada and 47 other countries export and import rough diamonds, is designed to curb the global illicit trade in “conflict diamonds,” which has fueled wars and military regimes in Africa.

Under Kimberley, participating countries would be required to export rough diamonds in tamper-resistant containers and provide a certificate, validated by the government of the export country, confirming that the diamond exports have not been bought or sold illegally. Countries would also be prohibited from importing rough diamonds from countries not engaged in the Kimberley Process.

“By exercising control over the global exports and imports of conflict diamonds, the international community will cut off sources of rebel funding in affected African countries,” says Canadian Foreign Affairs Minister William Graham. “The certification scheme should serve to promote economic development and increase tax revenues in those nations as legitimate mining ventures increase.”

During its most recent term on the United Nations Security Council (1999-2000), Canada pressed for measures to strengthen sanctions prohibiting the trade in conflict diamonds from Angola. These measures paved the way for similar actions targeting conflict diamonds from Sierra Leone and Liberia. Canada also co-sponsored two UN General Assembly resolutions, in December 2000 and March 2002, calling for the development of an international certification scheme for rough diamonds.

The Kimberley Process should be in effect by the end of 2002.

Canada produces nearly 6% of the world’s diamond production by value from the Ekati mine, 300 km northeast of Yellowknife, N.W.T., and the nearby Diavik mine is slated to start up in 2003. Two more projects, one in the Northwest Territories, the other in Nunavut, could be in production by 2007. These four mines would provide direct employment for about 1,600 people and could bring annual production to roughly $1.6 billion.