...Until the beginning of the eighteenth century all known diamonds came from the Golconda region near Hyderabad in India. Pliny wrote an incredible account of how diamonds were found in an inaccessible valley. The locals threw meat into the valley and the diamonds stuck to it. Eagles carried off the meat to their nests from which the diamonds were recovered. At their peak the Golconda diamond fields probably supported many thousands of workers but were practically exhausted by the late seventeenth century. In 1844 diamonds were discovered in Brazil and for a while the Chapada Diamantina, or Diamond Highlands, in the state of Bahia, became the diamond capital of the world attracting prospectors and adventurers in the same way that the California Gold Rush did. A series of major diamond finds in South Africa from 1867 onwards, coinciding with a decline in production in Brazil, soon made it by far the biggest source of diamonds. As in Brazil and Indian the first finds were alluvial but by 1869 diamonds were being mined in South Africa. Their value depended on their rarity and Cecil Rhodes realised that if suppliers competed against each other that would be threatened. By the end of his short life Rhodes had gained control of the diamond mines and extended British rule over much of southern Africa. Mark Twain said of him that when he stands upon the Cape of Good Hope, his shadow falls to the Zambesi (Twain, 1904). One area that was not under British rule was South-West Africa...
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...depicts the adverse effect of diamonds on the people of Africa. It also addresses the real price of diamonds which it believes to be the lives of millions of Africans. Additionally, it examines the response from the United Nations and question if enough is being done to crack done on the sale of blood diamonds. The famous phrase “Diamonds are Forever” is known to most people all over the world. What most people do not know is where most of these diamonds are coming from and how they came to become perfect gestures of love and romance. Looking at a clear cut diamond ring, it is hard to imagine the possibility of thousands of innocent people being murdered, tortured, and forced to mine for these stones; unfortunately that is the case in Africa. Diamonds in West Africa have been used for the last 30 years to fund rebel groups and their desire to take control of their nations by violence and intimidation. In such conflicted regions of the world, diamonds lose their connotation of beauty and elegance and are stained with blood. In this paper, I will discuss the many ways in which “conflict diamond” has brought nothing but poverty, suffering and war to the West African people. I will further explain what world organizations such as the United Nation have done in order to counteract the adverse effects of the conflict diamond on the African community, and the extent to which such efforts have been successful. Conflict diamonds are diamonds illegally traded to fund conflict...
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...Report on Argyle Diamonds and the Diamond Industry 1 INTRODUCTION India was the only known source of diamonds before the eighteenth century when diamonds were discovered in Brazil. The modern diamond industry was born in 1867 when diamonds were discovered in the Kimberley region of South Africa. The De Beers mining company was formed and they controlled 80-90 per cent of the rough diamonds entering the diamond market. The De Beers share of the diamond market fell in the 1990’s when the Soviet Union moved to a free market economy as Russian diamond mining companies were selling their diamonds on the open market. The Central selling Organisation (CSO) controlled by De Beers is responsible for regulating the price of diamonds on the market and marketing a large percentage of the world’s diamonds. The CSO protected the dominance of the diamond cartel but this monopoly was challenged by Argyle Diamonds when they refused to renew their marketing contract with De Beers. Argyle has been characterised by low value coloured diamonds, however their highly sought after pink diamonds has successfully differentiated their products from other diamonds the in the market (Vinciullo, Annear and Disbury, Not dated). 1.1 AIM OF THE ASSIGNMENT The aim of the assignment is to research and analyse the diamond industry and to evaluate Argyle Diamonds’ strategic position in the diamond industry. 1.2 OBJECTIVES OF THE ASIGNMENT • To research and evaluate competition in the precious...
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...business, the diamond industry has taken pains to evade questions about its connections with Israel’s human rights abuses — and so far has escaped scrutiny from watchdog organizations. Representatives for 75 countries affiliated to the United Nations-based Kimberley Process Certification Scheme meeting in Kinshasa this week failed to reach agreement on the export of blood-stained diamonds from Zimbabwe. The elephant in the room was Israel’s burgeoning diamond exports which evade the human rights strictures imposed on Zimbabwe’s diamond exports. A “letter of the month” that I authored and which was published in the April edition of Retail Jeweller magazine exposes these double standards in the Kimberley Process regulations that facilitate the trade in blood-stained diamonds from Israel and Zimbabwe (Letters, Retail Jeweller Magazine, April 2011). The letter caused “consternation” to some in the diamond industry and resulted in the withdrawal of the magazine from a major jewellery trade fair in Switzerland (“Gems editor sorry for ‘blood diamond’ boycott letter,” The Jewish Chronicle, 7 April 2011). The letter drew the wrath of vested interests and leaders of the Israeli diamond industry. Their response via the Letters page in the May edition of the magazine demonstrated the sensitivity of the global diamond industry to any exposure of the links between Israeli diamonds and Israeli war crimes. Three letters, signed by six prominent members of the global diamond industry...
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...Introduction Petra Diamonds Limited is an independent diamond mining and exploration company that supplies rough diamonds to the international market. Although its management claims that it has a diversified portfolio, most of its production arises in South Africa, with a very small proportion of production coming from Tanzania. It currently owns prospecting rights in a mineral rich region of Botswana and would be well placed to benefit from any discovery. Petra Diamonds Limited listed on London’s AIM market in 1997, it has since enjoyed very good growth and acquired many large assets, focusing on economies of scale and large kimberlite rich mines. Petra aims to become a large player in the mining industry with an ambitious plan to increase output to 5 million carats per annum (Mcpa) by 2019. It has recently listed on the main London market (LSE) and is confidently aiming to join the FTSE 250 by March 2012. Petra has attracted significant institutional investment since it listed in London. Additionally it has a good working relationship with the Saudi Arabian financial group Al-Rajhi, who own the largest minority interest in the group. Aggressive acquisitions strategy Petra has embarked on an aggressive acquisitions strategy over the past few years acquiring five mines from De Beers, most notably the Cullinan mine and the Finsch mine. It aims to produce 5 million carats by 2019, its current target is 2 million carats by FY 2012. At present production has increased to...
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...A Diamond Personality Annette Neblett University of Phoenix Managing Criminal Justice Personnel CJA 473 Michael Kanaby September 09, 2011 A Diamond Personality The case study titled “A Diamond Personality,” speaks of Oscar Rodriquez and how he became successful. Oscar Rodriquez lived in Puerto Rico, he moved from a non-English-speaking country to an English-speaking country. He came to the United States with a dream and goal. He went to school to further his education, and he worked at the local mall. Mr. Rodriquez was in the right place at the right time because of what happened to him and how he became successful. His can contribute his success to the advice given him from his roommate’s girlfriend. She sparked his interest in selling diamonds; she suggested that he should work in the diamond business. Mr. Rodriquez decided to work for a local jeweler. He had a goal in mind and continued to strive toward that goal. He continued his education and received his Diamonds and Diamonds Grading certification. In his current job Mr. Rodriquez realized that by working with the local jeweler, he would not achieve his goal. He began to explore other business options, and learned everything he needed to know about diamonds. Mr. Rodriquez grew tired of working for other jewelers and became discouraged. “He told himself that he would never become anything if he continued to work in his present job” (The Gainesville Sun, 2008, p. 2). When he decided to sell...
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...How does the diamond industry promote responsible trading practices? To promote the trading of diamonds from legitimate sources and to ensure that consumers can be confident in their diamond jewellery purchases, governments, NGOs and the international diamond industry have worked together to implement a ‘certificate of origin’ system, known as the Kimberley Process: The Kimberley Process is a certification system that prevents diamonds from an area of conflict entering the legitimate diamond supply chain. The Kimberley Process ensures that only rough diamonds accompanied by a government-issued certificate can be imported and exported, providing an assurance that the diamonds are from conflict free sources. Under this United Nations mandated system, only countries that are part of the Kimberley Process can import or export rough diamonds. Today, 74 countries are members of the Kimberley Process, ensuring that more than 99% of diamonds are from conflict free sources. Anyone who imports or exports rough diamonds between these countries without a Kimberley Process certificate is breaking the law. In addition to the Kimberley Process, the System of Warranties was developed by the World Diamond Council (WDC) to extend the Kimberley Process conflict free assurance to polished diamonds and provide a means by which consumers can be assured their diamonds are from conflict free sources. Its principal element is a declaration on the invoice accompanying every transaction (apart from the...
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...1. What are conflict diamonds? What groups benefited from the trade in conflict diamonds? What groups were hurt by it? As defined in the case study, conflict diamonds are gemstones that are mined or stolen by rebels fighting internationally recognized governments. Any of the anti-government/rebel forces/guerrilla troops/or other nonconformist groups within the areas of question or which could fall into this category or situation. The case study points out two groups who benefited the most under this circumstance; the Revolutionary United Front (RUF) (specific to the Sierra Leone region in West Africa) and the UNITA rebels (specific to the Angola region). These rebels inflicted physical pain on the villages which they took over in order to harvest and sell the diamonds. In their efforts to strong-arm villages, they terrorized men, women, and children by amputating their bodies. The mutilation count in the Sierra Leone region was estimated to be somewhere in the 20,000 count. Not only was immediate physical pain inflicted by these rebel organizations, but the money from diamond sales in these regions went to funding their anti-government and civil wars. This produced a continuous circle of effects. 2. What three sectors were concerned with the problem of conflict diamonds? What was the interest of each, and in what way did their interests converge? The (1-Business Sector) diamond industry, (2-Government Sector) the United Nations, several governments (no doubt those producing...
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...Indian subcontinent has been always the centre stage in the dramatic history of some of the world`s most famous mesmerizing diamonds. India is one of the earliest known source of diamonds. Today Indian Diamond Industry is pioneer in the gem industry and a world leader in the manufacturing of cut and refined diamonds. Diamonds today nine out of every ten come from India which is used in jewellery worldwide. The gems and jewellery industry occupies an important position in the Indian economy. It is a leading foreign exchange earner, as well as one of the fastest growing industries in the country in the past few years. The sector has gained global popularity because of its talented craftsmen, its superior practices in cutting and polishing fine diamonds and precious stones, and its cost-efficiencies. The sector has been vital to the Indian economy as well; during 2008-09, the sector accounted for around 13% of the country’s total exports. The gems and jewellery sector in India is engaged in sourcing, manufacturing, and processing, which involves cutting, polishing and selling precious gemstones and metals such as diamonds, other precious stones, gold, silver and platinum. Gold jewellery is the most preferred form of jewellery in demand in India as it is considered auspicious to purchase gold on major occasions like festivals, marriage, birth etc. Also, gold occupies the second position among all investment instruments and is considered as the safest investment option. According...
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...The documentary, Blood Diamonds – The True Story, that I just watched broke my delicate heart. I pity all the victims of the heartless act done by the rebel groups, National Union for the Total Independence of Angola (UNITA) and the Revolutionary United Front (RUF). I just cannot imagine how many innocent lives perished for the sake of funding civil wars in Central and Western Africa. In addition, I felt guilt within me for patronizing diamonds without knowing the real price and deeper reality behind these precious stones. Without any doubt, the film was very effective in achieving its purpose and intention through the techniques that was used. In fact, it presented firsthand accounts of the survivors and the culprits of the African diamond-funded wars, including testimonies from industry experts and journalists. Moreover, it shows actual footages of rebel groups attacking the diamond areas. With these, the viewers are now aware of the deeper reality that these diamonds has caused violence, slavery and killing of millions of people. Definitely, the film changed my perspective about diamonds. I realized that behind the shining and shimmering beauty of these valuable gems are bloodsheds among many people in Africa. Furthermore, I realized that not all that glitters are considered to be treasures. This just proves that awareness is very important. In patronizing products, one should first be knowledgeable on how these products came into existence. Finally, if I were given...
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...Diamond Ethics Blood Diamonds, also referred to as conflict diamonds, are diamonds that derive from areas controlled by forces or sections opposed to lawful and internationally recognized governments, and are used to fund military action in resistance to those governments, or in breach of the decisions of the Security Council. These radicals sell these diamonds, and the money is used to acquire weapons or to fund their military actions, and used to bribe foreign officials. Blood Diamonds are often created through the involuntary strained labor of men, women and children. They are also stolen during delivery or stolen by attacking the mining operations of lawful manufacturers. These assaults can be on the extent of a large military operation. The stones are then smuggled into the international diamond trade and sold as legitimate gems. These diamonds are often the main source of funding for the radicals, however, weapons businesses, smugglers and dishonest diamond traders enable their actions. Vast amounts of money are at stake and kickbacks, intimidation, torment, and murder are methods of maneuver. This is why the term "blood diamonds" is used. That diamond tainted and terminated many lives and the report of that stone bears a strong ethical significance. Angola Angola gained independence from Portugal on November 11, 1975. Although independent, the Popular Movement for the Liberation of Angola (MPLA), the National Union for the Total Independence of Angola (UNITA), and...
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...Conflict Diamonds and the Kimberly Process What this case is about was that ion the 2000’s, a common concern emerged among members of the diamond industry, the United Nations, several governments and Human Rights campaigners who all wished to end the trade in Conflict Diamonds which were gemstones that were being mined or stolen by rebels fighting internationally recognized governments. To end this, they embarked an unusual collaboration called the Kimberly Process. The Kimberly Process was a scheme for tracking diamonds all the way from the mine to the jewelry shop, so that consumers could be assured that the gems they were buying were conflict free. 1. Conflict Diamonds are diamonds that are illegally traded to fund conflicts. In recent times, conflicts in some of the poorest parts of Africa have often focused on rebels controlling their country’s natural resources and assets, for example, oil, wood, minerals and also diamonds. They are diamonds that had originated from areas controlled by forces or factions opposed to legitimate and internationally recognized governments, and are used to fund military action in opposition to those governments. Conflict diamonds came to the attention of the world media during the extremely brutal conflict in Sierra Leone in the 1990s. The groups that were benefited from the trade in conflict diamonds were the combatants, including the Revolutionary United Front. Diamonds played a key role in obtaining funds to provide these...
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...3.3 PRICE The use of synthetic, or lab grown diamonds, has challenged the natural diamond industry, even though production of synthetic gems is low compared to naturally-mined stones – only 1 to 2 out of every 100 carats sold is a synthetic (see table at top). Unlike other precious gems – rubies, emeralds and sapphires – where synthetics can sell at up to a 90 percent discount to naturals, high-quality synthetic diamonds can only trade at around a 2 to 20 percent discount (see table 2) Overtime, with the advancement and improvement of technology, the production of gem quality synthetic diamonds will continue to improve. Synthetic diamonds are manufactured based on demand, keeping that in mind, the relative prices will come down because...
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...328 Conflict Diamond Case Study Raw diamonds are making their way from deadly jungles to hands and necks all around the world. It is unfortunate that these resources from third world countries are being exploited for the sake of vanity. Diamonds are not just a symbol of love anymore but are also becoming a symbol of mutilated body parts and crisis. While lives are being taken and children are being exploited, there are fortunes being made by transnational corporations. All the while these poor African people working in the mines under horrendous conditions are only getting paid maybe a dollar a day. As long as there is wealth to be made this crisis may never come to an end. So, a question arises as to who are the key players and how can they help stop conflict diamonds or even worse, how are they contributing. There may very well be those that are trying to help stop conflict diamonds such as the World Diamond Council, United Nations and possibly others such as reporters just like we see in the movie ‘Blood Diamond.’ However, it is almost clear that all other stakeholders are only contributing. For example, Multinational Enterprises it seems only care about the huge profits they make and perhaps look the other way in order to have middle men working to smuggle these diamonds and pass customs. These MNEs’ have the most power in this situation and will continue to make large profits if nothing is done now. Consumers also contribute to conflict diamonds due to the mere...
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...Conflict Diamonds in the early 2000s, a common concern emerged among members of an oddly matched group : the diamond industry, the united nations, several goverments, and human rights campaigners. All wished to end the trade in conflict diamonds, gemstonesthat are mined or stolen by rebels fighting internationally recognized goverments. The $6 billion a year diamond industryhas long been dominated by the De Beers Corporation. Founded in south Africa by Cecil Rhodes in the 1880, the beers strategy has been to own as many diamond mine as possible and to sell its rough (uncut) stones exclusively to a small group of preferred dealers at prices set by the company. To maintain its control over supply, De Beers operated buying offices all over the world, “sweeping up” diamonds produced in mines operated by others. The result, for many years, was a virtual monopoly. De Beers has also been a shrewd marketer, pouring millions of dollars over the years into advertising. Using the slogan “a diamond is forever”, the company cultivated and association between diamonds and romance. The company first promoted solitaire engagement rings, later, it shifted its marketing focus to the so called eternity ring, a band of multiple smaller stones aimed at older married couples. In the early 1990s, event in several diamond-rich African nations converged to tarnish the gem’s carefully cultivated image of love and purity. During the cold war, many partisans in civil conflicts in Africa received funding...
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