Jewelry Certification & Valuation

The Kimberley Process: Ensuring Conflict-Free Diamonds

The Kimberley Process Certification Scheme (KPCS), commonly known as the Kimberley Process, stands as a vital international certification scheme established to prevent the flow of conflict diamonds – rough diamonds used by rebel movements to finance wars against legitimate governments. This initiative plays a crucial role in the global diamond industry, aiming to instill confidence in consumers that their purchases do not contribute to violence and human rights abuses.

Definition

The Kimberley Process is an international, multi-stakeholder initiative founded in 2003. It requires member states to implement a stringent certification system for the international trade in rough diamonds. Under this scheme, participating countries must strictly control their internal trade in rough diamonds and certify that all shipments are conflict-free. A shipment of rough diamonds can only be imported into or exported from a participating country if it is accompanied by a Kimberley Process certificate issued by the competent authority of the exporting country.

Key Features

The core of the Kimberley Process lies in its specific requirements for participating countries:

  • Certification System: Each participating country must establish a system for certifying rough diamond shipments as conflict-free.
  • Internal Controls: Countries must implement robust internal controls to monitor and regulate the mining, trade, and export of rough diamonds.
  • Import/Export Controls: Rough diamonds can only be traded internationally between participating countries, and each shipment must be accompanied by a KP certificate.
  • Punt System: The scheme defines what constitutes a conflict diamond, primarily focusing on diamonds funding rebel movements aiming to overthrow recognized governments.
  • Regular Reviews: Participating countries are subject to peer review and regular review by the KPCS Plenary and its committees to ensure compliance.

It is important to note that the Kimberley Process aims to prevent conflict diamonds as defined by the UN, which primarily relates to funding armed conflicts. It does not cover illicit diamonds that may result from other criminal activities, poor labor practices, or environmental damage, nor does it certify the ethical sourcing of polished diamonds or jewelry.

Origin and History

The Kimberley Process emerged from a growing international outcry against the devastating impact of conflict diamonds in the late 1990s and early 2000s. The brutal civil wars in countries like Sierra Leone, Liberia, Angola, and the Democratic Republic of Congo were heavily financed by the illicit trade in diamonds, often mined under horrific conditions and sold to fund violence. These diamonds became known as ‘blood diamonds’ or ‘conflict diamonds’. Recognizing the need for a global solution, the United Nations General Assembly adopted a resolution in 2000, endorsing the creation of an international certification scheme. The World Diamond Council, an industry association, played a pivotal role in working with governments and civil society organizations to develop the KPCS. The Process was officially launched in 2003, with the UN General Assembly adopting a resolution supporting the KPCS, and the World Trade Organization recognizing it as compliant with its rules.

Types / Variations

The Kimberley Process primarily deals with rough diamonds. The scheme is designed to track diamonds from the mine to the point of export. Once diamonds are cut and polished, they fall outside the direct purview of the KPCS. Therefore, while a polished diamond might originate from a conflict-free rough diamond certified under KP, the KPCS itself does not certify the ethical sourcing or conflict-free status of the polished stone.

How It's Made

The Kimberley Process is not a physical process of making diamonds but a regulatory framework governing the trade of rough diamonds. The diamonds themselves are formed under immense heat and pressure deep within the Earth’s mantle over billions of years. The KPCS intervenes in the trade of these natural diamonds after they are mined. Participating countries establish government-run or government-supervised systems to:

  • Control Mining Areas: Monitor and regulate diamond mining operations within their borders.
  • Issue Certificates: Issue KP certificates for each legitimate export shipment of rough diamonds.
  • Inspect Shipments: Ensure that only certified rough diamonds leave the country.
  • Verify Imports: Check incoming shipments for valid KP certificates.

The scheme relies on tamper-resistant seals and controls at each stage to prevent illicit diamonds from entering the legitimate supply chain.

Grading & Quality Standards

The Kimberley Process does not grade diamonds based on their quality, such as the 4Cs (carat, cut, color, clarity). Its sole focus is on preventing conflict diamonds from entering the legitimate trade. A diamond certified under the Kimberley Process is guaranteed to be free from funding rebel movements, but its aesthetic qualities or intrinsic value are not assessed by the KPCS. Diamond grading is conducted by independent gemological laboratories like the Gemological Institute of America (GIA) or the American Gem Society (AGS).

Buying Guide

When purchasing diamonds, especially those originating from countries that have historically been sources of conflict diamonds, understanding the Kimberley Process is essential. Here’s how it influences your buying decision:

  • Ask for KP Certification: Reputable jewelers should be able to confirm that their diamonds are sourced in compliance with the Kimberley Process. While a specific KP certificate is for the rough diamond export, the industry has adopted practices to ensure compliance throughout the supply chain.
  • Look for Retailer Guarantees: Many retailers provide their own internal guarantees that their diamonds are conflict-free, aligning with the spirit of the KPCS.
  • Understand Limitations: Be aware that KPCS certification only addresses conflict financing by rebel movements. It does not guarantee ethical labor practices, environmental sustainability, or the absence of other illicit activities in the diamond’s journey.
  • Consider Polished Diamonds: For polished diamonds, the KPCS’s direct role is limited. However, the industry’s adherence to the scheme and the subsequent efforts by many companies to implement broader ethical sourcing programs mean that most diamonds available today are considered conflict-free.

Price Range & Value Factors

The Kimberley Process itself does not directly set diamond prices or establish value factors. The value of a diamond is determined by the standard 4Cs (carat, cut, color, clarity), as well as market demand, origin, and rarity. However, the existence of the Kimberley Process adds a layer of assurance that can influence consumer confidence, which indirectly supports the market for diamonds. Diamonds certified as conflict-free, by instilling trust, maintain their market value compared to diamonds perceived as ethically problematic. The cost associated with implementing KPCS compliance measures is generally absorbed by the industry and does not typically result in a significant price premium for the consumer based solely on KP certification.

Care and Maintenance

The Kimberley Process is a regulatory scheme for the trade of rough diamonds and does not involve the physical care or maintenance of diamonds. The care and maintenance of diamond jewelry relate to cleaning, storage, and professional inspection to preserve the sparkle and integrity of the stone and its setting.

Pros and Cons

Pros:

  • Reduced Conflict Diamond Trade: Significantly curbed the trade in diamonds used to finance brutal civil wars.
  • Increased Consumer Confidence: Provided a framework for consumers to trust that their diamond purchases are not fueling conflict.
  • Industry-Wide Participation: Engaged governments, the diamond industry, and civil society in a collaborative effort.
  • Global Reach: Covers the vast majority of the world's rough diamond trade.

Cons:

  • Limited Definition of Conflict: Primarily focused on rebel movements, excluding other forms of violence, human rights abuses, or illicit mining activities.
  • Does Not Cover Polished Diamonds: The scheme's direct oversight ends with rough diamonds, leaving a gap for polished stones.
  • Enforcement Challenges: Relies on the self-regulation and cooperation of member states, which can vary in effectiveness.
  • Potential for Smuggling: While difficult, there remains a possibility for conflict diamonds to enter the legitimate supply chain through smuggling or fraudulent certification.
  • Does Not Address Ethical Labor or Environmental Issues: The KPCS does not mandate or monitor fair labor practices or environmental sustainability in mining operations.

Common Misconceptions

  • Misconception 1: The Kimberley Process grades diamonds. Fact: The KPCS does not grade diamonds based on quality (4Cs). Its sole purpose is to certify diamonds as conflict-free.
  • Misconception 2: All ethically sourced diamonds are KPCS certified. Fact: KPCS certification applies only to rough diamonds and specifically to preventing financing of rebel movements. Many companies have broader ethical sourcing policies that go beyond KPCS requirements.
  • Misconception 3: KPCS certification guarantees a diamond is 100% ethical. Fact: The scheme has a narrow definition of conflict. It does not encompass issues like worker exploitation, environmental impact, or diamonds sourced through other illicit means.
  • Misconception 4: KPCS applies to polished diamonds. Fact: The scheme’s regulations are focused on rough diamonds. While the industry strives for compliance throughout the supply chain, the certificate itself is for rough diamond exports.

Related Terms

  • Conflict Diamonds
  • Blood Diamonds
  • Rough Diamonds
  • Diamond Certification
  • World Diamond Council
  • United Nations
  • Responsible Sourcing
  • 4Cs (Cut, Color, Clarity, Carat)
  • Gemological Institute of America (GIA)

FAQs

What is a conflict diamond?

A conflict diamond, or blood diamond, is a rough diamond used by rebel movements to finance wars against legitimate governments, thereby disrupting peace, security, and development. The Kimberley Process specifically targets this definition.

Does the Kimberley Process guarantee a diamond is ethical?

No. The Kimberley Process guarantees that a rough diamond is not financing a rebel or terrorist group. It does not cover ethical labor practices, environmental concerns, or other forms of human rights abuses that may occur during mining or trading.

How can I be sure my diamond is conflict-free?

Reputable jewelers adhere to the Kimberley Process and often have their own internal policies for responsible sourcing. They can usually provide assurance that their diamonds are sourced in compliance with KPCS standards. Many also offer additional guarantees regarding ethical sourcing beyond the KPCS.

What is the difference between rough and polished diamonds in the context of KPCS?

The Kimberley Process certification applies to rough diamonds at the point of export. Once diamonds are cut and polished, they are no longer directly covered by the KPCS certification itself, although industry practices aim to maintain traceability and ethical standards throughout the entire supply chain.

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