Poor Artisanal Miners threatened by synthetic diamonds

[Karl_K]

While education is good it does not solve the problem.
What is needed is a trusted and quick paying fair pipeline that is trusted by the industry, the government and the miners.
When you or your family are hungry and sick $1000 maybe 6 months down the road is of far less use than $200 today.
Been there done that.

The mmd genie is out of the bottle and is not going back.
All that is left is how it will integrate with the rest of the industry and if it will replace parts of it or add on to it.

 

[Garry H (Cut Nut)]

While education is good it does not solve the problem.
What is needed is a trusted and quick paying fair pipeline that is trusted by the industry, the government and the miners.
When you or your family are hungry and sick $1000 maybe 6 months down the road is of far less use than $200 today.
Been there done that.

The mmd genie is out of the bottle and is not going back.
All that is left is how it will integrate with the rest of the industry and if it will replace parts of it or add on to it.

The is the problem Karl, they are all 'they's'. Western 'civilised' Nations can't get uniform laws across state boundaries.
We have a vernacular saying from a movie called The Castle in Oz. Tell'im he's dreamin!

 

[Paul-Antwerp]

According to DDI:
Up to 20% of the world’s gem-quality diamonds are produced by artisanal miners – people who dig for diamonds using rudimentary equipment. Often the whole family is involved, including children. There are 1.5 million artisanal miners in Africa and South America, working in 18 different countries.

According to wikpedia:
Gemesis has the world's largest facilities for both the high-pressure high-temperature (HPHT) and chemical vapor deposition (CVD) diamond production methods.

According to this site, Gemesis (which changed name to Pure Grown Diamonds) has less than 50 employees.
https://glassdoor.com/Overview/Working-at-Pure-Grown-Diamonds-EI_IE973658.11,30.htm

Hi Bryan,

I finally found the time to come back to this thread, as it gives me mixed feelings.

Please allow me to play the role of devil's advocate here, using your post. If 20% of the world's diamond production comes from artisanal mining, and if we assume equal value over all types of mining, this represents a total trade-value of approximately $3 billion.

Assuming that the figure of 1.5 million artisanal miners is correct and assuming that they collect full trade-value of their digging, it means that their work earns each on average $2,000 in a year.

Now, we all know that they will not get full trade-value and that the vast majority of them will have to make do with far less than $150 in a month. Moreover, we also know that the average value produced by artisanal mining is generally less than that produced by industrial mining.

If the DDI uses these figures as a defense of the natural diamond industry, while also mentioning that child-labor is a standard practice, I wonder who is doing the best job of attacking the natural diamond industry, the DDI or the producers of synthetic diamonds.

For sure, they could do a better job than this, no?

Live long,

 

[Garry H (Cut Nut)]

Hi Bryan,

I finally found the time to come back to this thread, as it gives me mixed feelings.

Please allow me to play the role of devil's advocate here, using your post. If 20% of the world's diamond production comes from artisanal mining, and if we assume equal value over all types of mining, this represents a total trade-value of approximately $3 billion.

Assuming that the figure of 1.5 million artisanal miners is correct and assuming that they collect full trade-value of their digging, it means that their work earns each on average $2,000 in a year.

Now, we all know that they will not get full trade-value and that the vast majority of them will have to make do with far less than $150 in a month. Moreover, we also know that the average value produced by artisanal mining is generally less than that produced by industrial mining.

If the DDI uses these figures as a defense of the natural diamond industry, while also mentioning that child-labor is a standard practice, I wonder who is doing the best job of attacking the natural diamond industry, the DDI or the producers of synthetic diamonds.

For sure, they could do a better job than this, no?

Live long,

Interesting POV Paul. Even at half that puts the average miner ahead compared to their neighbours. Of course it is never that simple as miners may not have time to grow subsistence crops and need to buy food.
from the Economist mag:
A NEW World Bank paper* paints a rather depressing picture of global poverty. From 1993 to 2008 the average per capita income of sub-Saharan African economies barely budged—it increased from $742 to $762 per year (measured in 2005 purchasing-power parity-adjusted dollars). If we exclude South Africa and the Seychelles, we see a decline from $608 to $556 over the period.

 

[Paul-Antwerp]

Averages are of course only averages, Garry (think GIA ). Reality is that the 1.5 million diggers do not get that average trade-value, possibly even less than half.

It is a very difficult ethical question. Should we continue to accept these practices, because this employment is better than nothing? Or should we avoid rough from artisanal mining in our production? For a cutter, it is an ethical decision, where neither direction is right. I have chosen to avoid artisanally mined goods.

It does not mean I am a huge fan of the bigger industrial miners. Many of them are working on origin-certification, but as long as it is mainly an attempt to increase prices to consumers, I am not inclined to go along with that either.

Live long,

 

[Garry H (Cut Nut)]

Averages are of course only averages, Garry (think GIA ). Reality is that the 1.5 million diggers do not get that average trade-value, possibly even less than half.

It is a very difficult ethical question. Should we continue to accept these practices, because this employment is better than nothing? Or should we avoid rough from artisanal mining in our production? For a cutter, it is an ethical decision, where neither direction is right. I have chosen to avoid artisanally mined goods.

It does not mean I am a huge fan of the bigger industrial miners. Many of them are working on origin-certification, but as long as it is mainly an attempt to increase prices to consumers, I am not inclined to go along with that either.

Live long,

I appreciate all you have written Paul. Personally I would like to have access to artisanly mined diamonds where an audit trail showed taxes paid to countries and a clear KP trail. But that is a big ask; doubt we are going to see blockchain applied at that level. However it does seem that in the past 15 years there have been huge advances, and no reason why the DDI momentum should not continue?

 

[Texas Leaguer]

I appreciate all you have written Paul. Personally I would like to have access to artisanly mined diamonds where an audit trail showed taxes paid to countries and a clear KP trail. But that is a big ask; doubt we are going to see blockchain applied at that level. However it does seem that in the past 15 years there have been huge advances, and no reason why the DDI momentum should not continue?

There is momentum for this very thing. It will have its challenges no doubt, but the effort and investment is being made. It should be applauded and supported.
https://www.debeersgroup.com/en/new...programme-to-support-formalisation-of-ar.html

 

[Paul-Antwerp]

I appreciate all you have written Paul. Personally I would like to have access to artisanly mined diamonds where an audit trail showed taxes paid to countries and a clear KP trail. But that is a big ask; doubt we are going to see blockchain applied at that level. However it does seem that in the past 15 years there have been huge advances, and no reason why the DDI momentum should not continue?

I apologize for my skepticism.

The DDI claims that artisanal diamond mining represents approximately 3 billion USD at wholesale trade-value in a year. In comparison, the DDI (if I read their 2016 annual report correctly) has total income (various contributions) of $949,619.-. Of this, they have spent $751,142.- to projects in the year 2016. If their figure about 1.5 million people active in artisanal diamond mining is correct, that is 50 cents per person. As good as the intentions may be, I do not expect this to have a meaningful impact on the lives of these people. Interesting to note also that the amount the DDI could dedicate to projects went down 33% in 2016, compared to 2015.

Just for comparison, De Beers' in 2015 spent 28.2 million USD on social investment, compared to a turnover of 4.6 billion USD.

Live long,

 

[Texas Leaguer]

I apologize for my skepticism.

The DDI claims that artisanal diamond mining represents approximately 3 billion USD at wholesale trade-value in a year. In comparison, the DDI (if I read their 2016 annual report correctly) has total income (various contributions) of $949,619.-. Of this, they have spent $751,142.- to projects in the year 2016. If their figure about 1.5 million people active in artisanal diamond mining is correct, that is 50 cents per person. As good as the intentions may be, I do not expect this to have a meaningful impact on the lives of these people. Interesting to note also that the amount the DDI could dedicate to projects went down 33% in 2016, compared to 2015.

Just for comparison, De Beers' in 2015 spent 28.2 million USD on social investment, compared to a turnover of 4.6 billion USD.

Live long,

Paul,
I agree that the issue is not with the intentions or the effectiveness of DDI, or with the general potential to reform this sector, but rather the level of support they are receiving. And I also agree it is inadequate considering the objective. But advocacy for people who themselves have little power is always a major challenge and takes time and dedication to build awareness and positive momentum. Whiteflash itself has been around 5 years longer than DDI!

I think it is incumbent upon every member of the trade, and for consumers who purport to care about the social injustices in our industry, to contribute to these efforts. DDI is organized around the right principles and have demonstrated that they can make a difference. They deserve to be supported.

 

[diagem]

Since you guys are touching this subject and even though this post is about colored gem mining, it could also be aimed towards artisan Diamond miners..., important words written and posted by GEMEXPLORER aka Yianni Melas.

https://www.instagram.com/p/BnlNRzyHI3C/?utm_source=ig_web_copy_link


“...Rough Gems like these support African Traders and Artisinal Miners. And most of these unusual gems are not mined by corporations as they are found in limited amounts. Supporting the Artisinal Miners by keeping things simple is far more ethical than trying to create useless paperwork. These gems don’t support wars but they support millions of families which to me is a far higher priority. At the ICA CONGRESS in Thailand 2019 the African Artisinal Miners will be represented for the first time in the history of our trade as a solidified group of many nations. I believe for the first time we will get insight to the real story behind the African Miner and trader. Not just the picture portrayed by the big mining companies which I also love and many are my friends. But we need to expose both sides so that we create a positive public relations campaign for our customers who for years have been brainwashed to believe that Gems are associated with wars and blood. It’s time the world realizes Gems are associated with hard working families whose life depends on small scale mining and trading. If we do not stand up for the small miner we will loose both the selection of different colors and rough as well as the traders not willing to deal with complicated schemes to buy from these Artisinal Miners. To me feeding the small scale Miners is a priority and the simpler we keep the system the more variety and balance in price will be available in the market. Monopolies only take advantage of the control they have in the rough. A free market is the best for everyone. Today the real blood war is that of hungry families that are not allowed to mine near their own villages.”

 

[Texas Leaguer]

Since you guys are touching this subject and even though this post is about colored gem mining, it could also be aimed towards artisan Diamond miners..., important words written and posted by GEMEXPLORER aka Yianni Melas.

https://www.instagram.com/p/BnlNRzyHI3C/?utm_source=ig_web_copy_link


“...Rough Gems like these support African Traders and Artisinal Miners. And most of these unusual gems are not mined by corporations as they are found in limited amounts. Supporting the Artisinal Miners by keeping things simple is far more ethical than trying to create useless paperwork. These gems don’t support wars but they support millions of families which to me is a far higher priority. At the ICA CONGRESS in Thailand 2019 the African Artisinal Miners will be represented for the first time in the history of our trade as a solidified group of many nations. I believe for the first time we will get insight to the real story behind the African Miner and trader. Not just the picture portrayed by the big mining companies which I also love and many are my friends. But we need to expose both sides so that we create a positive public relations campaign for our customers who for years have been brainwashed to believe that Gems are associated with wars and blood. It’s time the world realizes Gems are associated with hard working families whose life depends on small scale mining and trading. If we do not stand up for the small miner we will loose both the selection of different colors and rough as well as the traders not willing to deal with complicated schemes to buy from these Artisinal Miners. To me feeding the small scale Miners is a priority and the simpler we keep the system the more variety and balance in price will be available in the market. Monopolies only take advantage of the control they have in the rough. A free market is the best for everyone. Today the real blood war is that of hungry families that are not allowed to mine near their own villages.”

Thank you for that Yoram. In the first part of my career I was a colored gem trader and spent a fair amount of time dealing with artisanal miners in East Africa and Madagascar, Sri Lanka and even Mexico. I got to know many of these folks on a very personal basis and could see how hard they worked and how much my little bit of purchasing impacted them, their families and their villages.

Most gem traders don't actually go into the bush. But for any young people in the trade, you should make it your business to do so, if just for the learning experience. You will have a much greater appreciation for the rarity of the material and the positive impacts your business is making on the folks who bring it to market.