Business Day (Johannesburg)

South Africa: Diamond Business in a Huff Over 'Conflict Free' Oscar Freebies

Emma Muller

1 March 2005


Johannesburg — HOLLYWOOD celebrities attending the Oscars awards ceremony on Sunday received cultured "conflict-free" diamonds that, according to the organisation behind the gift, Diamonds For Humanity, involved no "human or environmental sacrifice" .

The diamonds, valued at $2500 to $3500 and grown and certified by Gemesis, the US producer of cultured gems, were part of a gift bag containing eco-friendly products aimed at promoting "luxury with conscience".

The notion of synthetic gems flooding the market is perceived as a genuine threat to the diamond industry, although it is still far away.

But as the spotlights turn on Hollywood stars wearing cultured bling-bling jewellery, diamond manufacturers and producers are contesting the assumption of human and environmental sacrifice.

"The holier-than-thou claim that their cultured diamonds are conflict-free is deliberately misleading," said Charles Wyndham at WWW International Diamond Consultants. "They have a different product, which has every right to exist, but they do not have the right to imply that diamonds sourced from countries such as Canada, southern Africa or Russia, which make up the vast bulk of natural diamonds, are conflict diamonds," he said.

Botswana, Namibia and SA rely to a large extent on diamond revenues to sustain their economies, combat HIV and fund health care and education.

In Botswana, the largest producer in the world by value, diamond revenues account for about 75% of the country's foreign earnings, 60% of government revenue and 33% of gross domestic product.

"Diamond mining has been cited as one of the key drivers of growth there since it gained independence from Britain in 1966," said Rosalind Kainyah, director of external affairs at De Beers' London-based Diamond Trading Company.

Mining company Debswana is the second largest employer after government with more than 6500 workers.

"Debswana has enabled Botswana to transform itself from an undeveloped agriculture-based economy to one of the most successful in the world," said Kainyah.

In Namibia, the diamond mining industry forms the backbone of the economy, generating about 70%-80% of the country's annual export earnings and 20% of government revenue.

In SA, the diamond industry currently employs 28000 workers in mining, sorting and valuing, cutting and polishing, jewellery manufacturing and retail.

"All synthetics manufacturers would also be hard-pressed to compete with the environmental contributions which De Beers and other mining companies make in Africa," said Kainyah, pointing at socio-economic benefit agreements with producer countries and the promotion of wildlife conservation in SA.

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