Feasibility Study for the Development of a Fair Trade Diamond ...

EXECUTIVE SUMMARY 

FEASIBILITY STUDY FOR THE DEVELOPMENT OF A 

FAIR TRADE DIAMOND STANDARD AND 

CERTIFICATION SYSTEM 

By Resource Consulting Services, Limited 

For Transfair USA 

12 th December 2008

EXECUTIVE SUMMARY December 2008 

Feasibility Study for a Fair Trade Diamond Standard and Certification System 

About Resource Consulting Services 

Resource Consulting Services Limited provides research and advisory services 

in developing economies and high risk environments for a diverse range of 

clients. We conduct political economy analyses, investigations, including due 

diligence, and business sector research. We also provide solutions-oriented 

advice in a range of sectors, with expertise in mineral governance, ethical 

supply chains, minerals certification, conflict resources, securitised 

development, CSR, artisanal mining, and community development. 

www.resourceglobal.co.uk 

The founding directors are Nicholas Garrett, Estelle Levin and Harrison Mitchell. 

Authorship 

This report was researched and written by Estelle Levin, Harrison Mitchell & Dr. Magnus Macfarlane with 

case study contributions from Shawn Blore, Laurent Cartier, & Henry Thompson and editorial and writing 

contributions from Fay Warrilow. 

Acknowledgements 

The authors would like to thank all the interviewees and survey respondents, who gave up their time to 

participate in the research, as well as the staff of Transfair and Shauna Alexander Mohr who reviewed 

earlier drafts of the report. Particular thanks goes to the case study mining organisations which allowed 

themselves to be researched and reported on, as well as Caren Holzman of Transfair USA, Demos Takoulas 

and Anel Laas of Vukani Ubuntu, Babar Turay, Liang Wei Zhang, and Richard Wake Walker. 

We would also like to thank all the various people in Sierra Leone, South Africa, Botswana, India, China, 

Guyana and Brazil who offered their time to improve our understanding, but who were promised 

anonymity. 

Disclaimer 

This report is prepared from sources and data which Resource Consulting Services (RCS) believes to be 

reliable, but RCS makes no representation as to its accuracy or completeness. The report is provided for 

informational purposes and is not to be construed as providing endorsements, representations or 

warranties of any kind whatsoever. The authors accept no liability for any consequences whatsoever of 

pursuing any of the recommendations provided in this report, either singularly or altogether. Opinions and 

information provided are made as of the date of the report issue and are subject to change without notice. 

Cover picture: A bulldozer waits in front of Tefeya’s ‘Sacred Bush’ in Sierra Leone, © Estelle Levin, 2006. 

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Table of Contents 

Introduction...............................................................................................................................1 

A Typology of Producers.............................................................................................................2 

Overall Feasibility.......................................................................................................................3 

Diamond Producers....................................................................................................................4 

Subsistence Artisanal Miners.................................................................................................................................. 4 

Micro-Scale Miners ................................................................................................................................................. 4 

Small-scale Mining Companies................................................................................................................................ 4 

Mid- and Large-scale Mining Companies................................................................................................................. 4 

The Cutting and Polishing Sector ................................................................................................5 

Supply Chain Models and Pricing Structures ...............................................................................5 

Managing Incompatible Supply and Demand..............................................................................6 

Developing the Standard............................................................................................................7 

Potential Partners: Producers.....................................................................................................8 

Potential Partners: Other initiatives ...........................................................................................9 

Next steps and Key Considerations...........................................................................................10 

Endnotes..................................................................................................................................11 

iii



Acronyms 

AMDM 

ARM 

ASM 

BDSVU 

BEE 

BPP 

CASM 

CLT 

CO-OPEMG 

CO-OPERGAC 

CO-OPERGADI 

C&P 

CR 

CRJP 

CR 

CSO 

DACDF 

D4D 

DDI 

DFID 

DIB 

DME 

DRC 

DTC 

EITI 

FESS 

FLO 

FT 

FTCS 

GDD 

GDP 

GGDMA 

GIA 

GJEPC 

GoB 

GoSL 

GW 

ICMM 

IDMA 

IDMP 

IFC 

ILO 

IPEC 

IRMA 

ISO 

JoA 

KDWMC 

KPCS 

LSM 

MCDP 

MDDWG 

MSM 

n/a 

NGO 

MASEU 

MCEP 

Artisanal and Micro Diamond Mining 

Alliance for Responsible Mining (formerly Association for Responsible Mining) 

Artisanal and Small-scale Mining/Miners (includes artisanal, micro, and small-scale) 

Botswana Diamond Sorters Valuators Union 

Black Economic Empowerment (South Africa) 

De Beers’ Best Practice Principles 

Communities and Small-scale Mining 

Community Liaison Team 

Co-operativa de Pequenos e Medios Garimpeiros 

Co-operativa de Garimpeiros de Coromandel 

Co-operativa de Garimpeiros de Diamantina 

Cutting and Polishing 

Corporate Responsibility 

Council for Responsible Jewellery Practices 

Corporate Social Responsibility 

Civil Society Organisation 

Diamond Area Community Development Fund (DACDF) 

Diamonds for Development (UNDP programme in Liberia) 

Diamond Development Initiative 

Department for International Development (UK) 

Diamond Intelligence Briefs 

South African Department for Minerals and Energy 

Democratic Republic of Congo 

De Beers’ Diamond Trading Company 

Extractive Industries Transparency Initiative 

Foundation for Environmental Security and Sustainability 

Fairtrade Labelling Organisations International 

Fair Trade 

Fair Trade Certification System 

Gold and Diamond Department (Sierra Leone) 

Gross Domestic Product 

Guyana Gold and Diamond Miners Association (Guyana) 

Gemmological Institute of America 

The Gem and Jewellery Export Promotion Council (India) 

Government of Botswana 

Government of Sierra Leone 

Global Witness 

International Council for Mining and Metals 

International Diamond Manufacturers Association 

Integrated Diamond Management Programme 

International Finance Corporation 

International Labour Organisation 

International Programme on the Elimination of Child Labour 

Initiative for Responsible Mining Assurance 

International Standards Organisation 

Jewelers of America 

Kono District Women’s Multi-Purpose Cooperative 

Kimberley Process Certification Scheme 

Large-Scale Mining/Miners 

Mwadui Community Diamond Partnership 

Madison Dialogue Diamond Working Group 

Medium-scale Mining/Miners 

Not Available 

Non-Governmental Organisation 

Mining and Allied Services Employees Union (Sierra Leone) 

Mining Certification Evaluation Project 

iv



MSI 

OECD 

PAC 

PDA 

PWYP 

RJC 

SAM 

SDC 

SDT 

SSM 

UN 

UNDP 

USAID 

VU 

WDL 

WFDB 

WGAAP 

Management Systems International 

Organisation for Economic Co-operation and Development 

Partnership Africa Canada 

Peace Diamond Alliance 

Publish What You Pay 

Responsible Jewellery Council (formerly CRJP) 

Subsistence Artisanal Miners 

Sandoh Development Corporation 

South African State Diamond Trader 

Small-Scale Mining/Miners 

United Nations 

United Nations Development Programme 

United States Agency for International Development 

Vukani-Ubuntu 

Williamson Diamonds Limited 

World Federation of Diamond Bourses 

Working Group on Alluvial and Artisanal Production (Part of the KPCS) 

v



Glossary 

AA1000 

Alluvial 

Artisanal Mining 

Beneficiation 

Bourse 

Carat 

Compaction 

Cooperative 

Corporate Mining 

CRJP Standard 

Cutting and Polishing 

Diamond 

Diamond Intelligence 

Brief 

Diamond Pipeline 

Diamond stability field 

Diamondiferous 

Downstream 

Diwali 

Economic Displacement 

Egmont Institute 

EITI 

Eluvial 

Erosion 

A series of standards improving the sustainability performance and corporate accountability 

of organisations, developed by AccountAbility 

Alluvial diamond deposits have been transported by the movement of water. They include 

former and present riverbed, riverbank, gravel terraces, and floodplains. 

Mining conducted with rudimentary tools such as picks and shovels, usually informally by 

individuals or small groups of people on a subsistence basis 

The creation of ‘added value’ through vertical upstream and downstream economic linkage 

activities in supply, distribution, processing and manufacturing 

The common term for a diamond market 

0.2g in weight (the standard unit of measurement for diamonds) 

The action or process of inducing the particles of a substance such as soil to combine more 

tightly 

The International Cooperative Alliance defines a Cooperative as ‘an autonomous 

association of persons united voluntarily to meet their common economic, social, and 

cultural needs and aspirations through a jointly-owned and democratically-controlled 

enterprise’. 1 

Mining conducted by a corporate entity, distinguished from ‘artisanal and micro mining’ on 

the basis of it being conducted by a formal and highly professional organisation 

An ethical performance standard for gold and diamond supply chains in development by 

the Council for Responsible Jewellery Practices (now the Responsible Jewellery Council) 

An inclusive term for the process with transforms a rough diamond into a brilliant, cut and 

polished jewellery diamond 

A natural mineral consisting essentially of pure carbon crystallised with a cubic structure in 

the isometric system. Its hardness in the Mohsscale is 10; its specific gravity is 

approximately 3.52; it has a refractive index of 2.42 and can be found in many colours 

An influential newsletter with news and analysis of the diamond industry, 

produced by Tacy Ltd. 

The diamond supply or value chain, from point of production to sorting and/or trade to 

manufacture to sorting and/or trade to jewellery manufacture to jewellery retail. 

The region in the Earth’s upper mantle where the pressure and temperature are sufficiently 

high (50 kilobars and 1,000 degrees Centigrade) to transform carbon into diamond 

Bearing or yielding diamonds 

Referring to activity ‘down’ the supply chain beyond production 

A major Hindu holiday celebrated in October or November 

Defined by the IFC performance standards as ‘loss of assets or access to assets that leads to 

loss of income sources or means of livelihood’ 2 

Also called the Royal Institute for International relations, the Egmont Institute is an 

independent think-tank based in Brussels, which conducts interdisciplinary research on 

international relations. 

The Extractive Industry Transparency Initiative aims to strengthen governance by improving 

accountability in the extractives sector. 

Eluvial deposits have been transported by the movement of soil 

The carrying away or displacement of solids such as rock or soil, by agents of currents such 

as wind or water 

vi



ETI 

An alliance of companies, NGOs and trade union organisations which aims to promote and 

improve the implementation of corporate codes of practice which cover supply chain 

working conditions 

FLO Contract Production This standard aims to enable unorganised or informal small producers join Fairtrade 

Standard 

through a partnership with an intermediary organisation which is able and willing to 

contribute to their social and economic development. 

FLO Generic Standards 

The Fair Trade Standards by which all producers must be audited to receive Fair Trade 

certification. They aim to protect workers’ rights and the environment, and ensure proper 

management of the Fairtrade premium. 

FLO Hired Labour Standard This Standard was developed to certify plantations in order to bring benefits to plantation 

workers. This Standard is applicable to companies where the workers are organised (e.g. 

there is a union or equivalent) and the company is prepared to promote the workers’ 

development and share the additional Fair Trade revenues with them. 

FLO Small Farmer Standard This Standard is oriented at producers ‘that are not structurally dependent on permanent 

hired labour, managing their farm mainly with their own and their family’s labour-force.’ 3 

Garimpeiro 

Global Compact 

The term for an artisanal or micro-miner in Brazil 

The UN Global Compact is a strategic policy initiative for businesses that are committed to 

aligning their operations and strategies with ten universally accepted principles in the areas 

of human rights, labour, environment and anti-corruption 

Global Sullivan Principles A set of principles to advance a development framework that enables businesses of all sizes 

and in all sectors to pursue their business objectives while being mindful and respectful of 

employees and the communities in which they operate 

GRI Reporting Guidelines Guidelines for reporting on an organisation’s sustainability performance 

IFC Performance Standards The International Finance Corporation’s environmental and social standards are designed 

to minimize impact on the environment and on affected communities 

ILO Conventions 

International Labour Organisation’s conventions on labour conditions 

Internal Safeguard Policies World Bank Policies for use by World Bank staff to ensure their development interventions 

do not harm the environment or vulnerable groups. 

IRMA Standards 

ISO 14000 series 

ISO 9000 series 

Joint Body 

Joint venture 

Junior Mining Company 

Kimberlite 

Kimberlite pipes 

Madison Dialogue 

Standards developed by the Initiative for Responsible Mining Assurance to be used as a 

voluntary system for independently verifying a mine’s compliance with environmental, 

human rights and social standards 

The International Organisation for Standardisation’s family of standards for Environmental 

Management 

The International Organisation for Standardisation’s family of standards for quality 

assurance 

The Joint Body is a committee whose sole purpose is to decide how Fair Trade social 

premiums should be spent. The Joint Body is made up of democratically-elected worker 

representatives and representatives of management; workers hold the majority of votes. 

The social premium is intended for the benefit of workers and their communities. 

A contractual agreement joining together two or more parties for the purpose of executing 

a particular business undertaking 

A junior mining company does not derive its capital from the sale of its commodities, but 

raises it on the stock market to support its exploration and mine development activities. 

A type of soft, potassic volcanic rock best known as the substrate for diamonds; usually 

grey-green in colour and crumbly in consistency 

Typically cone shaped occurrences of kimberlite, where most diamonds are found today 

A cross-sector initiative established to promote communication and collaboration among 

companies, civil society groups and others seeking to encourage best practices, sustainable 

vii



Manufacturing 

Mechanised Mining 

Medium-scale mining 

Micro mining (general) 

economic development, and verified sources of responsible gold, diamonds and other 

minerals 

The process of cutting and polishing a diamond 

The use of machinery either to remove or shift earth to obtain access to diamond bearing 

rock or gravel and/or to ‘wash’ the crushed rock or gravel 

A corporate mine, typically with assets exceeding US$100m, and an annual throughput of 

ore exceeding 100,000 tonnes. The definition may vary according to country legislation. 

Organised diamond mining on a small scale, such as with cooperatives or miners’ 

associations; typically with assets up to several hundred thousand US dollars. 

OECD Guidelines for Voluntary principles and standards for responsible business conduct covering employment 

Multinational Enterprises and industrial relations, human rights, environment, information disclosure, combating 

bribery, consumer interests, science and technology, competition, and taxation. 

Overburden 

Points 

Producer 

Promoting Body 

Rap Sheet 

Rough 

Run-of-mine 

SA8000 

Sight holders 

Sights 

Sluice box 

Material, such as soil, which lies above the area of economic interest 

0.01 carat = 1 point, 100 points make up 1 carat 

A producer (miner) of diamonds 

The promoting body is the organisation which, under the Contract Production standard, is a 

legally registered entity which works locally with the unorganised or informal producers 

and takes on the responsibility for helping the producers ‘reach a level of organisation over 

time that is able to comply with’ one of the other Generic Standards 4 . 

A wholesale price list for rough diamonds produced by the Rapaport Group 

Rough diamond(s) 

All diamonds from a particular mine 

A global social accountability standard for decent working conditions, developed and 

overseen by Social Accountability International (SAI) 

An exclusive group of preferred buyers of diamonds from De Beers 

Where Sight Holders view the diamonds offered for sale by De Beers 

An elongated wooden or metal trough with riffles, down which alluvial gravel is washed to 

recover gold or diamonds (gravity separation) 

Standard Zero 

Standard Zero ‘is a set of draft principles and standards produced by a technical committee 

under the coordination of [ARM] … They are an adaptation of the FLO standards for small 

producers to the situation of artisanal and small scale mining (ASM), and therefore follow 

the characteristic Fair Trade grouping of social, economic, labour and environmental 

development standards. It also includes standards for Fair Traders of gold and associated 

silver and platinum.’ 5 

Upstream (supply chain) Towards the point of extraction of diamonds 

Voluntary Principles on A set of voluntary principles to guide companies in maintaining the safety and security of 

Security & Human Rights their operations within an operating framework that ensures respect for human rights and 

fundamental freedoms 

viii



INTRODUCTION 

Since the problem of conflict diamonds emerged in the late 1990s, the diamond industry and other industry 

stakeholders have engaged a number of strategies to verify diamond supply chains. Chief among these was the launch 

of the Kimberley Process Certification Scheme for Rough Diamonds (KPCS), which sought to eliminate the trade in 

conflict diamonds. The KPCS has made a number of significant steps towards formalising and improving transparency 

in and oversight of the diamond trade, particularly the trade in artisanally mined rough diamonds. 

With many policy makers, industry experts and observers perceiving, correctly or not, that the most significant conflict 

diamond issues have been largely addressed by the KPCS, the process of assuring the ethical integrity of diamonds has 

evolved to other concerns, most especially labour and human rights issues. No longer content with the unitary brand 

that is ‘diamond’ in and of itself and keen to distinguish their diamonds on the basis of their naturalness, quality, and 

social and environmental credentials, multinational diamond industry leaders are spearheading this shift within the 

diamond industry through their own diamond branding initiatives. At the same time, NGO voices continue to 

campaign on the industry’s development challenges, emphasising that diamond mining and processing, and artisanal 

mining in particular, are still associated with hazardous conditions; exploitative labour; child labour; gender 

discrimination; ecological destruction; environmental health risks; and social and economic malaise within the 

communities in which they operate. 

In step with this broad-based momentum to address development issues in the diamond sector and given Fair Trade’s 

current successes in other commodities and thus potential to actively help address these issues, Transfair USA, with 

funding from the Tiffany Foundation, commissioned the present study to assess the feasibility and desirability of 

developing a Fair Trade Standard and Certification system for diamonds. 

The goal of Fair Trade is to ‘empower farmers and workers to lift themselves out of poverty by investing in their farms 

and communities, protecting the environment, and developing the business skills necessary to compete in the global 

marketplace’ 6 . Fair Trade Principles include a fair price, fair labour conditions, direct trade, democratic and 

transparent organisations, community development and environmental sustainability 7 . The report’s aim is to assess 

whether and how Fair Trade certification could deliver on this goal and these principles within the diamond industry. 

Transfair USA commissioned two reports as part of this overall. Shauna Alexander-Mohr assessed industry needs and 

expectations in order to market polished Fair Trade diamonds at the point of retail 8 . Her key conclusions were 9 : 

• The industry is open to Fair Trade’s collaboration in tackling its major development issues, particularly in 

relation to supply chain integrity and artisanal mining, through a market-based solution; 

• Fair Trade should partner with existing industry efforts in this area, which involve individuals who “possess 

prodigious knowledge about every aspect of the industry” and are the “industry leaders from top brands and 

leading NGOs” 10 . 

• The branding and marketing context for jewellery is substantially different from the agricultural products that 

form Fair Trade’s current base, as jewellery is not an every day investment and is often “well-contemplated” 

and “charged with emotion” 11 . 

• The “notion of a ‘diamond brand’ is a powerful force” and is “part of the reason the industry came together 

quickly to address conflict diamonds” 12 . Thus: 

o Fair Trade “should be prepared to be a supporting brand, not a co-brand, for diamond jewelry” as 

many retailers would not seek to discriminate between Fair Trade and non-Fair Trade products in 

the store, but would provide information only if asked by the customer, “ ‘like a Woolmark label on 

an Armani suit’” 13 . 

o Negative marketing would not be tolerated as ‘casting doubt on one diamond is casting doubt on all 

diamonds’ 14 . 

• The industry is interested in the possibility of buying and selling Fair Trade diamonds – but whether or not 

they actually do purchase them will depend on the volume of available supply and diamond quality, size and 

price, and on Fair Trade’s ability to break ground in risky territory where no one has yet succeeded: verifying 

a porous and complex global supply chain from mine to display case. 

By Resource Consulting Services 

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• The industry is fast-moving and efforts are moving forward quickly. If FT wants to play a role it must launch 

swiftly. 

The second phase of the research, conducted by RCS Limited and reported below, assesses the downstream segments 

of diamond mining, rough trading, and manufacturing at all geographies and scales 15 . Specifically, it sought to 

determine the feasibility and desirability of certifying diamonds as Fair Trade, bearing in mind the geography and 

political economy of production, trade, and manufacture; the capacity of producer organisations to participate; how 

to ensure supply chain integrity; the ability of Fair Trade to deliver development benefits to miners and their 

communities; the possible role for Fair Trade in the context of other initiatives; key issues for standard development; 

and potential pilot sites. 

Work began at the start of 2008 16 . The research involved literature review, stakeholder consultation and observation 

through field work, interviews, participation in industry events and conferences 17 . Field trips were to South Africa, 

Sierra Leone and China, and desk-based case studies were conducted based on associates’ prior research in Botswana, 

Brazil, Guyana, and India. Five main research questions were asked of each case study organisation: is there a business 

case for Fair Trade engagement from the perspectives of Transfair/FLO and the producer? Is there a development 

case? Does the organisation have adequate capacity to engage? What are the contextual challenges? The research 

also looked at general feasibility, asking similar questions concerning the general global business and development 

cases for a Fair Trade diamond standard, and examining contextual challenges. It asked whether producer and 

manufacturing organisations have the capacity to produce the right type and quantity of Fair Trade diamonds 

demanded by retailers, and whether there are potential opportunities for synergies and partnerships with existing 

initiatives. 

A TYPOLOGY OF PRODUCERS 

Typologies of producers and manufacturers were developed to ensure consistency of interpretation across the case 

studies and analysis. This divided producers into six groups on the basis of levels of organisation, formalisation and 

legality, ownership structure, and motivation as these important distinctions will determine how Fair Trade can and 

should engage in order to ensure it is benefitting the target group. See Table One 18 . 

Table One: A Typology of Diamond Producers, Part One 

Type of Organisation 

1. Subsistence artisanal 

miners 

Level of 

Organisation 

Individuals 

Limited 

organisation 

(family groups, 

small gangs) 

19 Organised 

2. Micro-mining 

artisanal miners 

3. Locally owned 

small-scale mining 

companies / mines 

4. Foreign owned 

small-scale mining 


5. Medium-scale mining 


6. Large-scale mining 


Organised 

Organised 

Organised 

Organised 

Level of 

Professionalism 

Informal, Illegal 

Unprofessional 

Informal, illegal 

Formal, Legal 

Semi-professional 

Formal, Legal 

Professional 

Formal, Legal 


corporate 

Formal, Legal 


corporate 

Formal, Legal 


corporate 

Owner-operator 

or hired labour 

Owner operator 

Supported labour 

Some casual hired 

labour 

Owner operator 

Supported labour 

Some hired labour 

Certificate 

holder 

Promoting 

Body (NGO, 

trader, etc.) 

Organisation 

Hired labour Mine Profit 



Owner’s 

Motivation 

Survival / 

Subsistence 

Survival / 

Subsistence 



2



Table One: A Typology of Diamond Producers, Part Two 

Type of Organisation Capital Technology 

Assets



DIAMOND PRODUCERS 

SUBSISTENCE ARTISANAL MINERS 

Unorganised Subsistence Artisanal Miners (SAM) is not an appropriate sector for Fair Trade engagement in the shortterm 

due to the lack of infrastructure at the business and development levels. Engagement with SAM would require 

Fair Trade to find a body (NGO, exporter or buyer) either to function as a buyer from a number of artisanal producers 

or to organise the miners. In relation to the first option, the difficulties include finding the right organisation, verifying 

the origin and legality of rough diamonds, auditing the activities of scores of individuals or small groups, and 

successfully entering buying markets given the cultures and risks of diamond buying in many countries. For example, 

building trust with miners and political authorities, providing ad-hoc ‘relief’ to the miners, and occasionally financing 

production are all hugely important in ensuring access to supply. On the other hand, attempting to organise SAM into 

functional institutions has not been done successfully for diamonds (yet) 24 . Yet, if Fair Trade wishes to benefit this 

most vulnerable group of miners, then organising them would be vital. 

MICRO-SCALE MINERS 

Fair Trade business opportunities to engage with this sector are many, as miners are often looking for investment, 

assistance in improving productivity, and improved access to markets: they need capitalisation. Yet, this sector is also 

relatively high risk and canny investors have lost money engaging with it 25 . Inadequate supply also means that, 

without the security of supply afforded by a larger operator, partnerships with many micro-scale mining organisations 

would be necessary, increasing the costs of capacity building and oversight. However, development opportunities in 

this sector are substantial. These producers face many of the development issues present in artisanal mining 

communities. They are well embedded in the local community and many operate, or have ambitions to operate local 

development programs. 

Fair Trade could adopt a progressive approach to manage the risks of engaging with these producer organisations. For 

example, some combine diamond mining with other economic activities. Fair Trade could engage with those that 

produce agricultural products and gold and use these as ‘trial’ Fair Trade commodities to build Cooperative values and 

functionality, before attempting the riskier business of diamond production. 

SMALL-SCALE MINING COMPANIES 

SSM companies enjoy some significant advantages over micro-miners from a business perspective. Most significant 

are their relatively watertight and captured supply chains, which reduce opportunities for interference, and their 

ability to produce more diamonds. SSM also have a greater social and environmental impact, which can be a good or a 

bad thing. This is especially the case for locally-owned SSM, whose owners will invest a greater proportion of their 

profits in the local and national economies than foreign-owned SSM 26 . From the SSM perspective, there are pros and 

cons to working with Fair Trade. The con is that they tend to be less capitalised than LSM and so may find a hired 

labour standard costly and a burden. The pros, however, are that in this sense, Fair Trade could up the business case 

for SSM by helping them access finance and secure buyers on the back of their participation in the Fair Trade 

partnership. Their involvement with Fair Trade could also act as a type of guarantee to host governments of their CR 

credentials, and so improve their competitiveness in securing desirable concessions. Furthermore, compared to microminers, 

the higher profile of SSM within the local community requires a process of continual engagement to maintain 

good relations. Fair Trade could help with this and enhance community benefits through its Fair Trade premium 

framework for ensuring community development in a way that is properly democratic and inclusive. 

MID- AND LARGE-SCALE MINING COMPANIES 

From a Fair Trade perspective, the business case is simply the potential supply from these companies. Practically 

speaking, large-scale mines would have to be assessed and assured on a mine-by-mine basis, i.e. it is the Ekati mine, 


4



not BHP Billiton’s Diamond Arm that would be Fair Trade certified. However, there is the potential of oversupply in 

fact, and, based on a number of key stakeholders’ shared view, there are reputational risks for FLO in certifying this 

sector’s diamonds either at all and certainly before artisanal or small-scale organisations are certified. 

The development case for engagement rests on the companies’ potential impact, and the additional empowerment 

benefit Fair Trade structures would offer both workers and communities beyond the CR frameworks these companies 

already use. As partners and not development beneficiaries, there must also be a business case from the perspective 

of the parent mine or company. The general business case for them has already been exemplified by the efforts of the 

world’s biggest diamond companies to implement voluntary standards and CR strategies across all their major mining, 

sorting, sight-holder and manufacturing operations, and consequently to develop their own ‘brands’ to assure 

consumers of their ethical status. These standards and strategies cover a comprehensive scope of requirements, 

including many found in the FLO Hired Labour standard. They do not, however, all address the same issues and there 

are certainly some gaps between these and Fair Trade’s Hired Labour requirements, including Fair Trade’s particular 

(and empowering) premium redistribution mechanism. Also, they tend to be assured by second party auditors 

commissioned by the companies. Co-branding with Fair Trade could help raise the value of these industry brands by 

making clear to consumers a greater independence in assurance and superior attention to the protection of 

vulnerable groups and the delivery of development benefits. If Fair Trade decides that engaging with this sector is 

necessary or desirable, then advocacy may be required to encourage their involvement. 

THE CUTTING AND POLISHING SECTOR 

From the manufacturer’s perspective, the business case to cut and polish Fair Trade diamonds is strong as it would not 

mean many adaptations, especially in the formal, professional sector, as many factories are accustomed to existing 

assurance systems. However, there must be a commercial incentive in terms of greater competitiveness or income in 

return for participation. Furthermore, the factors that influence the cost of production (US$ per carat) must be 

managed. To keep this as low as possible for any size of stone, and as a strategy for ensuring manufacturer interest, 

Fair Trade will have to guarantee a regular supply of rough of sufficient quantity and appropriate size and quality. 

The decision on which manufacturers to work with depends upon the objectives of engagement with this supply chain 

segment, namely risk mitigation or development optimisation. If the principal objective is risk mitigation, then the 

highly organised, modern diamond processing units that use laser, semi-automated/automated, and planning 

technologies would be most suitable. Here, labour relations are fairly good, the diamonds are well tracked, and the 

implementation of auditable requirements should not be so difficult. These factories could be part of a Fair Trade 

supply chain as licensed operators without needing to develop a Fair Trade Standard for Diamond Manufacturers. 

On the other hand, if Fair Trade prioritised the provision of development benefits to manufacturers as a condition for 

engagement, then this would mean seeking ways to work with cottage manufacturers where more vulnerable 

individuals get work but where the quality of production is lower, diamond tracking is less sophisticated, and labour 

issues are more serious. This would require actually developing a full Fair Trade Standard for Diamond Manufacturers. 

Based on stakeholders’ responses, this is the preferred option, and there would be reputational issues for Fair Trade in 

not developing a Fair Trade Standard for Diamond Manufacturers which rigorously assures process and production 

methods and associated management systems, whilst directly attempting to tackle some of the sector’s development 

issues. Indeed, overall, it is clear from the health and safety problems in small-scale factories in India, the pressurised 

environment induced by Botswanan factories’ ‘incentive structures’, and the extant development-oriented and black 

empowerment practices of South Africa’s case study manufacturers, that there is much to be achieved in this supply 

chain segment in terms of development through empowerment and protection of vulnerable groups. 

SUPPLY CHAIN MODELS AND PRICING STRUCTURES 

A breach in the supply chain was considered a serious threat to Fair Trade certification, according to survey 

respondents. This is a particular threat with micro and small scale operators. However, these challenges are not 


5



insurmountable if due consideration is given to checks and balances in the system. Maintaining supply chain integrity 

at the point of manufacture will involve appropriate contractual terms, adapting requirements that encompass the 

specific realities of each unit, building trust, and ensuring transparency. But perhaps more important is that a Fair 

Trade certification scheme seeks to build long term partnerships with producers and other actors that are based on 

mutual trust, benefit, and loyalty. 

The report presented a number of examples of supply chain models and partnerships which are currently in operation 

in the diamond sector. One of the most viable ways to get a Fair Trade diamond to market, is through vertically 

integrated supply chains, if large-scale mines and multinational diamond corporations participated in certification, 

and partially integrated supply chains for other coalitions of miners and buyers. 

MINES ROUGH TRADE/ MANUFACTURING POLISHED TRADE/ JEWELLERS 

SORTING 

SORTING 

One possible supply chain model currently used by Target Resources to Tiffany & Co., and De Beers to Finesse 

Diamonds 

There may be a place for an ‘ethical agent’ to directly insert themselves into the supply chain to act as a dedicated 

buyer of diamonds from Fair Trade mines, outsourcing C&P, and then sorting and selling the diamonds to Fair Trade 

Jewellery Manufacturers with a view to facilitating this process rather than maximising profit 27 . The advantages are 

that it would help ensure greater control of the chain of custody from mine to market and a portion of profits could be 

directly set aside for investment in bringing more mining organisations to compliance. 

In order to establish a fair price, it will be necessary to design a procedure for pricing Fair Trade diamonds. This will 

need to be done by specialists alongside standard development. 

MANAGING INCOMPATIBLE SUPPLY AND DEMAND 

A serious complicating factor in making functioning, commercially viable supply chains is the possible incompatibility 

between the types of Fair Trade diamonds produced and those demanded by the market. This has implications for 

what types of producer and manufacturers should be brought on board from a purely commercial standpoint. 

Alexander-Mohr indicated that Fair Trade consumers would likely be from “the bridal market” 28 , which means that 

better stones would be demanded. Furthermore, marketing study respondents indicated that certifying anything 

under 10 or 25 points would be cost ineffective 29 . Yet Fair Trade producers would benefit most from selling run-ofmine, 

which means there would be a large proportion of small, and semi-gem and industrial diamonds to deal with. 

Diamond quality and quantity were generally poor in most micro-scale case study organisations researched. 

In terms of manufacturing, professional factories with higher costs tend to specialise in larger, better quality stones, as 

they cannot glean a sufficient margin from the smaller stones as the cottage industry can. This suits the potential 

market, but not the potential supply. The ideal situation from the producers’ perspective would be that they could sell 

their semi-gems as Fair Trade, and Fair Trade manufacturers could manufacture them economically, to provide a Fair 

Trade market for, say, melee or fashion jewellery. However, ensuring the cost of production is adequately low to keep 

these diamonds competitive at ultimate retail point, whilst ensuring Fair Trade requirements are met, would be 

challenging. In the short-term, if scoping studies confirm this preliminary conclusion of the likely quality of supply from 

the micro-producers, then certifying a larger organisation to ensure consistency and appropriate quality of supply 

would seemingly be necessary to even enable a Fair Trade supply chain to exist. 


6



DEVELOPING THE STANDARD 

In any Fair Trade supply chain, it is likely only the mine and possibly the manufacturer would be Fair Trade certified. 

For the sake of ensuring the integrity of the chain of custody and use of the Fair Trade label, all other supply chain 

operators would have to be audited and licensed as compliant with requirements set by FLO or FLO-Cert. 

We recommend universal principles for Fair Trade diamonds across all scales and geographies so as to maintain a 

universal meaning as to what goals a ‘Fair Trade diamond’ delivers on. However, we believe the requirements must be 

tailored to the differing capacities, realities and challenges for the different types of operator, and differing ownership 

and decision-making structures at the different scales, in order to be achievable and productive. We therefore 

recommend developing three standards based on scale: 

1. A Subsistence Miners’ Standard. It will not be possible for SAM to be Fair Trade certified as it is fundamental 

that the producer organisation be an organised, legal entity. However, these are the most vulnerable 

producers who could benefit most from Fair Trade arrangements. FLO’s Contract Labour standard provides a 

route for informal, unorganised producers to produce a Fair Trade certified product whilst they organise, 

formalise, and build their capacity to comply with the Small Farmer Standard. Unfortunately, the absence or 

extremely limited choice of suitable Promoting Bodies in all countries investigated may mean that the 

capacity of the Promoting Body would have to be built first, even before the capacity of the miners could be 

attended to. This is not a short-term, or cheap, solution. Thus we think a Subsistence Miners’ Standard, based 

on FLO’s Contract Labour standard, could be developed in the mid-term. 

2. A Micro-scale Mining Organisations’ Standard. This would need extra requirements for hired labour 

(permanent and temporary), but would be based on FLO’s Small Farmer Standard and ARM’s Standard Zero, 

which adapts FLO’s Small Farmer Standard for artisanal gold miners 30 . 

3. A Corporate Mining Organisations’ Standard, for small-scale, mid- and large scale private and joint-venture 

mines. This would be based on FLO’s Hired Labour Standard, but would include requirements for local 

employment and management of the Fair Trade Premium in the case of Joint Ventures. It would also take 

reference from CRJP’s and IRMA’s Standards in particular, which pull together the principles and 

requirements of the industry’s multiple CR standards, as set out below. If it is determined that developed 

country producers are Fair Trade eligible for this product, we would recommend that a Technical Committee 

consider carefully the differing developmental potentials and operational risks of Fair Trade producers and 

vulnerabilities of the mine communities in these different contexts before deciding whether or not it would 

indeed be more fair to make requirements for mid- to large-scale producers in developed countries more 

rigorous or even different than for their counterparts in developing countries. 

At the Cutting & Polishing level, we would recommend that Transfair develop Fair Trade Manufacturers’ Rules to 

allow factories be able to be licensed as Fair Trade Manufacturers in the first instance, with a view to developing a Fair 

Trade Cutting & Polishing Standard for achieving empowerment and development objectives in the medium-term. At 

the practical level, it is the professional factories that will be the first to be licensed. However, and in line with the 

desires of the majority of stakeholders, it is recommended that any Fair Trade Standard developed for the Cutting & 

Polishing Level be oriented at the cottage industry segment too, where the empowerment impacts would likely be 

greater and the type of producer is more in line with the Fair Trade tradition. 

There will also need to be Rules for Rough and Polished Buyers to enable them to be licensed as Fair Trade Buyers. 

Supplementary requirements may need to be specified for different types of trading, e.g. free trade at auctions and 

bourses vs. pre-arranged contracted trade. 


7



POTENTIAL PARTNERS: PRODUCERS 

The report includes a number of case studies of potential partners in the production of a Fair Trade diamond including 

cooperatives from South America and Sierra Leone, and businesses from South Africa, Botswana and Tanzania, and 

discusses the pros and cons of working with each respective organisation reviewed in terms of the business case, 

development case, feasibility, key issues & risks, and time-frame for engagement. Some key observations and 

conclusions are: 

• Generally: 

o Good prospecting and proper cost benefit analyses are vital before a decision is made to engage a 

mining organisation as a potential Fair Trade producer. 

o Importance of building trust and loyalty within the organisation and between the organisation and 

other Fair Trade actors, including the buyer. 

o It is easy to raise hope and expectations amongst miners and mineworkers; initial engagement 

should be cautious and respectful of the potential for people to plan their lives around a belief that 

Fair Trade will come. Fair Trade will also have to deal with cynicism from miners who have had 

expectations dashed previously by development or ethical buying interventions. 

• Guyana: 

o Guyana’s Subsistence Artisanal Miners (SAM) could reach Fair Trade certifiable standards with 

relatively little effort, save for those which relate to organisation. 

o The lack of institutionalisation of Guayanese mining gangs and the illegality of miners suggests that 

the FLO Contract Production Standard is the only suitable model for engagement. Unfortunately, the 

lack of a suitable local partner makes this unworkable in the short term. 

o It is not clear that Fair Trade could contribute to fairer financing as miners are not financed by 

dealers and so are free to shop their diamonds around. Financial backers have an interest in seeing 

that miners receive as much as possible for the diamonds as their share depends on this price too. 

There would need to be other incentives for the miners to decide that they want to be Fair Trade 

Producers. 

o Smuggling of Venezuelan diamonds into Guyana and the inability to ensure a relatively closed chain 

of custody would make it extremely difficult to prevent laundering of Venezuelan diamonds through 

Fair Trade supply chains. 

• Brazil: 

o 

o 

o 

The business case for Fair Trade is fairly good, with the Brazilian cooperatives demonstrating good 

management and good production (including large and valuable gems). 

The mechanised cooperatives are keen to market members’ diamonds directly to international 

buyers, suggesting a predisposition to the Fair Trade concept. 

The use of hired labour but small size of the operational units means that the certification system 

would need to accommodate hired labour in a way that would ensure the miners receive adequate 

protection and benefits, without being overly bureaucratic. 

• Sierra Leone: 

o The viability of building micro-scale Fair Trade production in Sierra Leone is threatened by 

dematerialisation of traditional diamond producing areas and the consequential increase in cost of 

production. 

o Concerted and ongoing training in business and operational management and democratic 

governance will be crucial to ensure producers are profitable and the distribution of benefits is fair. 

o The chances of successful engagement can be enhanced by engaging with cooperatives that have 

successfully participated in other programmes, such as FESS’s land reclamation project 31 . 

o In light of the failings of the PDA cooperatives scheme 32 , the cooperatives’ work in mining gold and 

agriculture could provide a useful opportunity to do a phased approach to producing Fair Trade 

diamonds as a risk management strategy. These organisations could become Fair Trade certified for 

gold or cash crops as a route to promoting Fair Trade to them, ensuring their loyalty to their Fair 

Trade partners and each other, and proving their ability to function as Fair Trade producers before 

taking the much riskier and more expensive step of initiating Fair Trade diamond mining operations. 


8



o 

o 

Sandoh Development Corporation (SDC), which is a joint venture between Milestone Trading (Target 

Resources, plc) and the local chiefdom, could be a Fair Trade pilot project. However, the implications 

of operating under Fair Trade principles would need to be entirely understood by the chiefdom 

partners so that their willingness to engage could be confirmed. 

SDC supplies Tiffany & Co., so this could be an interesting partially integrated model supply chain. 

• South Africa 

o There is potential for a complete South African FT supply chain through a number of manufacturers. 

o Potential supply is very large, but the quality of production from micro-scale producers is seemingly 

poor. A larger operation would need to be brought on board to make in-country Fair Trade supply 

chains viable. 

o There is potential to operate through a tender house to auction Fair Trade diamonds to buyers. 

o Fair Trade is already successful in the agricultural and horticultural sectors. Miners could learn from 

these farmers’ experiences. 

o Black Economic Empowerment in South Africa can serve as a useful basis for the promotion of Fair 

Trade in South Africa. 

• Tanzania 

o The Mwadui Community Diamond Partnership (MCDP) was still in the planning phase and 

community engagement phase when De Beers sold its share in the Williamson Diamond Mine to 

Petra Diamonds in September 2008 33 . The future of the Partnership is uncertain. 

o Should Petra not take forward the mantle, it may be possible for a local NGO to advance the project 

with external support, acting as a promoting body to ensure the MCDP’s objectives are realised. 

o The development of a standard for SAM might be necessary for Fair Trade certification of Mwadui 

diamonds until there were micro-scale organisations who could fulfil the Fair Trade requirements. 

o If the MCDP retains the support of Williamson Diamonds Limited and proves successful, it has 

potential not only to be a participant in a Fair Trade Scheme, but to be a model project in how to 

organise SAM to be Fair Trade micro-producers. 

• Botswana 

o Debswana could comply quickly. 

o As it is a joint venture with the Government of Botswana, it may be challenging to do Fair Trade with 

Debswama as the Joint Body mechanism is designed to benefit workers and local communities. In 

keeping with standard practice in the industry, Fair Trade corporate mining organisations might 

integrate workers’ representatives, company management, and community representatives into the 

Joint Body. 

o As the research was conducted remotely, the interest of the owners in participating is not known. 

POTENTIAL PARTNERS: OTHER INITIATIVES 

There is a range of initiatives within the ‘ethical’ diamond sector spanning the interests of civil society, government 

and business, ranging from on-the-ground sustainable development projects to global councils for developing 

assurance standards. Fair Trade standard development should build on lessons learned from these initiatives’ 

successes and failures, and avoid duplication of existing efforts by integrating with these where possible 34 . 

Key organisations with whom Fair Trade should build alliances are DDI, CASM, and ARM for working with artisanal and 

micro-miners, and CRJP and IRMA for working with corporate miners. The DDI has many of the major industry 

stakeholders on its board or in its advisory committee, and is held by them to be the principal institution for tackling 

development issues in the diamond sector, particularly relating to the artisanal segment. Close collaboration with DDI 

is advised if key players are to be supportive and not view Fair Trade’s efforts as duplication. 

CRJP and IRMA have developed industry standards for assuring the ethical performance of large-scale diamond 

producers and manufacturers. FLO could improve their development impact through the creation of an 

‘empowerment’ component to append to these standards to allow producers to use the Fair Trade label on the 

product. This component would focus on control of a Fair Trade Premium and protection and fuller inclusion of 

vulnerable stakeholders. 


9



NEXT STEPS AND KEY CONSIDERATIONS 

So what are the next steps and key considerations, should Fair Trade take the decision to go ahead with a diamond 

certification system? 

Key actions are: 

• Develop a business case and advocacy strategy for corporate miners, if working at this level is deemed 

desirable. 

• Develop draft standards for Fair Trade Certified Producers, and the necessary supporting Supplements. 

• Develop Rules for Fair Trade Licensed Manufacturers and Buyers. 

• Develop a Manufacturers’ standard in the mid-term. 

• Conduct scoping studies to identify potential pilot sites including, and in addition to, those identified herein. 

Include fuller capacity assessments of producer organisations, and cost-benefit analyses based on proven 

productivity of the land, cost of production, quality and volume of production, contextual challenges. 

• Establish a team of specialists to define how the Fair Trade Diamond Price and Premium should be 

determined. 

In all cases, key considerations are: 

• Recognise the ‘lootability’ and extra ‘corruptability’ potential of diamonds given the huge value that 

something so small and concealable can have 35 . Acknowledge that this lootability means that Fair Trade will 

need to have a greater presence on the ground for monitoring diamond producers, especially at the 

subsistence and micro-scales and especially during the washing seasons, for a more extended period of than 

that a typical agricultural certification process may require. 

• Recognise the greater financial risk posed by diamond mining ventures as opposed to gold mining and 

agriculture; a strategy for managing financial risk is essential, through, for example, proper prospecting of the 

land, ensuring legal title is obtained for a sufficient length of time, providing training in business 

management, and so on. 

• The development potential of a Fair Trade diamond supply chain will be generally determined by the type 

of mine and the supply chain model pursued. Different models have different ownership structures, which 

create different opportunities and paths for empowerment, in particular, and vest control in different 

decision-makers in terms of how these opportunities are navigated. Thinking about the supply chains in these 

terms can help ensure optimal development benefits are delivered. 

• Incorporate lessons learned from other initiatives in Fair Trade and in the diamond industry 

o Embrace an adaptive management approach to increasing the commercial viability of micro-and 

small producers, to allow for inevitable failures and set-backs. 

o Develop a long term strategy in recognition of the distance that many micro-producers will need to 

travel to be productive and functional organisations. 

• Consider how to remedy any incompatibilities between producers’ and manufacturers’ supply and capacity 

potentials and needs. 

Certifying a Fair Trade diamond is feasible and there is a strong case to make that it can be a successful business 

model, as well as a positive force for development within the sector. However, obtaining adequate quality and 

quantity of supply, keeping the cost of production to competitive levels, ensuring the backing of the industry-at-large, 

and finding micro and small-scale partners who are able to come to compliance quickly will be the main challenges in 

bringing Fair Trade certified diamonds to market. Given Fair Trade’s proven record in benefitting millions of the 

world’s farmers, it may be the first system that could indeed invert the wretched resource curse into a resource cure 

that brings dignity and development to the world’s diamond miners and communities. 


10



ENDNOTES 

1 ICA 2008. 

2 IFC Performance Standard 5, p. 18. 

3 FLO 2007b. 

4 FLO 2005. 

5 ARM 2007. 

6 http://www.transfairusa.org/content/about/overview.php, Accessed 23 rd November, 2008. 

7 http://www.transfairusa.org/content/about/overview.php, Accessed 23 rd November, 2008. 

8 Alexander-Mohr, 2008. 

9 Paraphrased from Alexander-Mohr, 2008. 

10 Alexander-Mohr, 2008, p. 2. 

11 Alexander-Mohr, 2008, p. 2-3. 




15 The research was designed in consultation with Alexander-Mohr, who was concluding her study as RCS began, so enabling RCS to 

consider some of her findings. 

16 The principal research team was Estelle Levin and Harrison Mitchell of RCS Ltd., and Senior Associate, Dr. Magnus Macfarlane. 

Some case studies were done by Shawn Blore (Guyana, Brazil), Laurent Cartier (India), and Henry Thompson (Botswana Cutting and 

Polishing). Editorial and writing contributions were given by Fay Warrilow, and statistical support was given by Alex Neumuller. 

Harrison Mitchell undertook Field Trips to Sierra Leone, South Africa and China. Dr. Macfarlane was responsible for LSM desk-work, 

Mwadui Case Study, and quality control. Estelle Levin was team leader. In total, over 100 people were interviewed or surveyed in 

the course of doing the research. 

17 Various analytical and data collection tools were designed and employed and are presented as annexes to the report. 

18 Marine diamond mining and nationalised diamond operators were not considered. 

19 The ‘micro-mining’ sector here refers to artisanal, but organized, operations that work in a number of different forms specific to 

their geographies and environments. Micro producers are distinguished from artisanal miners on the basis of their operations being 

more mechanised, capital intensive, organised and altogether more professional. Nonetheless, where the report speaks of 

‘artisanal miners’ it also includes those miners who may own or mine for micro producer organisations. Small-scale mines are 

distinguished from micro-mines given their greater professionalism, capitalisation, and production capacity. 


21 Alexander-Mohr judged that a moderate increase in price of 5-10% is all the market could endure, (2008, pp. 5-6). 

22 A proviso, of course, is that the small or medium-scale producer would have to demonstrate a clear development case and be an 

appropriate partner based on Fair Trade principles and objectives. 

23 However, there is a danger in developing countries of creating enclaves of privilege around mines, which participate in 

certification schemes, and this could create conflict (Anonymous participant at BGR pre-conference workshop on Certified Trading 

Chains in Mineral Production at Fatal Transaction’s and BICC’s conference, Private Companies and Emerging Economies in Zones of 

Conflict, Bonn, Germany, 20 th November, 2008. With regard to developed countries, a development case could be argued to work 

with large-scale mines which impact indigenous groups, where Fair Trade’s involvement could demonstrably empower these 

groups. Diamond mining in Canada, Australia and Russia impacts on Indigenous Peoples. See Crate, 2008; Roberts, 2007; Hookimaw 

2008; Rio Tinto, 2008c. 

24 The exception here may be the efforts by the Groupe d’Appui aux Exploitants des Ressources Naturelles (GAERN) in DRC, which 

has been attempted to organise and support fifteen artisanal diamond Cooperatives since 2005. It is perhaps too early to judge in 

what ways their efforts have or have not been successful, but more attention is merited. (Hund, 2008). 

25 Cf. Levin & Gberie, 2006; Levin with Turay, 2008; Mitchell, Garrett & Levin, 2008. 

26 For general discussion on this point, see Auty, 1993. 

27 In partnership with the Shell Foundation, M&S has done such a thing to enable it to source from small cotton farmers in India. 

See Killigan, 2008. 



11



30 See glossary. Note that ARM’s standard for artisanal gold would make an excellent starting point given the extensive consultation 

they have done over a there year period with artisanal and micro-miners, government officials, local authoritie, consultants, and 

academics. 

31 See www.fess-global.org/tiffany.cfm#MainBody 

32 See Levin with Turay, 2008; MSI, 2007; Temple, 2007; Tutushaus et al., 2007. 

33 De Beers and Petra Diamonds, 2008. 

34 For example, many have concentrated on the cooperative model. Evidence suggests that cooperatives are certainly viable, but 

must be carefully adapted from existing local structures and be developed with careful controls and a lot of capacity-building 

support if they are not to fail. See Levin with Turay, Blore, 2008; Vlassenroot & Van Bockstael, 2008. Furthermore, prospecting and 

proper cost-benefit analyses are required to prevent commercial failure. 

35 Lujala et al., 2003; Le Billon, 2007; Reno, 1995. 

12

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