GDO Kimberley Process Compliance

The Liberian Government has three major requirements, inter alia, to qualify for participation in the Kimberley Process Certificate Scheme; namely:

a). Determine Liberia’s diamond production potential

The United States Geological Survey (USGS) undertook to implement the program to determine the country’s diamond potential. A report released on 2nd November 2006 which was prepared by Dr. Charles H. Thorman and Dr. Karin O. Hoal entitled Geological Assessment of Liberia’s Diamond Producing Regions, Diamond Production Potential, & Review of Liberia’s Production History summarizes the following:

1. Based on the findings presented herein, upon the lifting of sanctions, Liberia’s diamond production by artisanal diggers could approach 200,000 carats per year, and continue to increase slowly into the future and might attain levels realized in Sierra Leone and other neighboring countries.
2. On the basis of regional studies and current exploration results by companies, it is possible that one or more kimberlites will be discovered in Liberia. Should a deposit be discovered, it will take approximately five years before full-scale production is realized. Using the Koidu experience in Sierra Leone, production from a small, economic kimberlite could be more than 100,000 carats per year from a single deposit.

b). Construct a center to evaluate and appraise diamonds for taxation and issue appropriate KP export certificates containing required information and security and anti-forgery safeguards Modern Diamond Center

• Construction of a modern Diamond Center has been completed.
• GDO will be equipped with the assistance of DeBeers and the Dubai Diamond Exchange gemology equipment and furnishings.
• Currently three Liberians are in diamond valuation training in Kimberley, South Africa.
• Two additional Liberians have left to start valuation training in Dubai

c) Establish internal control over rough diamond production, sales and export

• Revised Mineral and Mining law to comply with Kimberley Process Compliance, September 2004.
• Trained 20 Mineral Inspectors/Mining Agents – staff Regional Offices.
• Programmed additional training for staff of regional offices in November to reinforce skills and add a technical dimension through GPS training.
• Conduct a series of seminars for miners, brokers, dealers and exporters to explaining the new system and the requirements as outlined in the new Mining law of 2004 for KP compliance.
• Continue our public awareness campaign to sensitize public and diamond sector on KP issues and consequence of non-compliance.
• Continue to work with UNMIL in refurbishing containers that will serve as regional offices through their grant to the Ministry.
• Developed the instruments to document transactions and establish a chain of custody allowing the government to track diamonds from mining site to exportation.
• Conducted a field trip to Sierra Leone to observe first hand the operations of the Government Diamond Office and where applicable replicate best practices.
• The hardware and software for establishing the database system for capturing KPC statistics should have been installed in November to coincide with the installation of the gemology equipment and furnishing provided by DeBeers and the Dubai Diamond Exchange.