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National Environmental Policy into sector-specific bodies of law, according to a development priority orderand to create a mechanism to evaluate competing land use options.The Minerals and Mining Law of 2000 (MML) 1 calls for regulations. There are no regulations that guideASDM. Enforcement practices appear to follow Regulations pursuant to the repealed Mining Act of 1979and the outdated Natural Resources Law of 1956. These practices create legal contradictions and leavesignificant regulatory gaps. MLME should formulate and adopt general Mining Regulations that address gapsleft by the repeal of the Mining Act’s Regulations and repealed Natural Resources Law, specifically withregard to the rights and obligations of brokers and dealers, surveying methods, and the roles and authoritiesof Mining Agents and Patrolmen. MLME must formulate and promulgate specific regulations that providefor Artisanal Diamond Mining/Miners (ADM) licensing processes and licensing terms and conditions.There are no appropriate legal or regulatory tools, nor enforcement capacity to comply with environmentalreclamation requirements. Environmental laws must be amended to provide for realistic and feasiblereclamation practices for ASDM. Two suggestions in this regard would be to encourage clustered andprogrammatic diamond mining in concentrated and properly demarcated areas, and to facilitate compliancethrough local participation and benefit-sharing.In the absence of artisanal mining regulations, the terms and conditions that accompany a Class C ADMlicense are unclear and contradictory in key areas, or have no basis in law. Miners are uncertain about thelicense application process and find it complicated and expensive to comply. MLME should review Class CADM licensing terms and conditions, and simplify and clarify the licensing process. The recommendationwith regard to the Class C claim size and licensing costs is to reduce the cost in proportion to the claim size,and / or to extend the licensing period. The proposed claim size is 5 acres for one year at US$40, or 10 acresfor two years at US$75.Liberian law presently only recognizes formally registered private property rights. All unregistered land istreated as “public land” which GOL can sell or encumber with long-term leases and concessions for naturalresource exploitation. In terms of the Constitution, GOL is the owner of all unsevered minerals withinLiberia. Rural communities who hold land communally only have use rights. The dual system of statutory andcustomary rights causes conflict and insecurity of tenure for ADMs, as they have no input in the disposal orappropriation of their land. Consultation and stakeholder consultation should be mandated in all processesaffecting rural communities’ access to land and use rights. MLME should work closely with the LandCommission of Liberia to clarify and recognize customary land rights.Rural communities do not gain direct benefit from mineral exploration or mining activities taking place ontheir communal land, nor are they presently entitled to surface rental. The National Forest Reform Law of2006 created a benefit-sharing scheme for local communities to share in the revenues from commercialforestry. The National Environmental Policy mandates revenue sharing from mining activities forcommunities, but there is no mechanism to implement it and it has not yet been extended to localcommunities where ASDM is taking place. Communities should be entitled to surface rental where theirsurface and use rights are impacted by mineral development, as well as a share in the royalties paid to GOL.While the Land Commission determines the status of customary land rights, MLME should at least recognizecommunities’ use rights and facilitate administrative justice, which includes the right to compensation for lossor disturbance and/or surface rental. Once the Land Commission reaches a decision about the status ofcustomary land rights, those rights and principles must be incorporated into and harmonized with mininglaws and regulations.There are no mechanisms to resolve disputes between ASDM and customary communities, or ASDMs,brokers, and dealers. As natural resource disputes are particularly prevalent, an easily accessible alternativedispute resolution mechanism should be created that is more accessible and flexible than formal courtprocedures.1The Minerals and Mining Law of Liberia, 2000. Chapter 21.viPRADD LIBERIA: A REVIEW OF THE LEGAL, REGULATORY AND POLICY FRAMEWORKGOVERNING ARTISANAL DIAMOND MINING IN LIBERIA
1.0 INTRODUCTIONLiberia is recovering from 15 years of violent and debilitating civil conflict, to a large extent funded by thetrade in rough diamonds. Though not the direct cause of the conflict, it financed the conflict through theprocurement of arms, hiring of rebel soldiers, private militias, and mercenaries under the rebel armies andpresidencies of Samuel Doe and Charles Taylor. As the result of the egregious human rights violations,diamonds produced and exported with a nexus to conflict became known as “blood diamonds.” In responseto this phenomenon of “blood” or “conflict” diamonds in several African countries, the Kimberley ProcessCertification Scheme (KPCS) was established in 2003. The Scheme aims to prevent illegally mined roughdiamonds from entering international trade. Due to its role in fueling the civil wars in Liberia and SierraLeone, the United Nations (UN) imposed sanctions on the export of Liberian rough diamonds from 2001 to2007. In 2007, the sanctions were lifted when Liberia could prove to the satisfaction of the internationalcommunity that a system of internal controls were in place to monitor rough diamonds through a legitimatechain of custody to the point of export.Liberia is placing heavy reliance on its natural resources to elevate it out of poverty and to jumpstart socialand economic development. In the last five years alone, Liberia has attracted more than US$17 billion inforeign direct investment linked to its natural resources. 2 Given the finite nature of diamond resources, theGovernment of Liberia (GOL) and mining communities in rural areas need to capitalize on the sustainabledevelopment potential of local diamond mining activities, comprising environmental, economic, and socialdimensions.The GOL, specifically the Ministry of Lands, Mines and Energy (MLME) and Department of Planning andDevelopment (DPD) have taken several progressive steps to fulfill its mandate to comply with KPCSmonitoring requirements: a Mineral Policy, consistent with international best practice, was adopted in 2010; aMining Cadastre Information Management System was established in support of a transparent, efficientlicensing system; and the capacity of the Inspectorate, Regional Diamond Offices and Mining Agents wasimproved.Despite all these newly implemented measures to improve monitoring of diamond production, registrationand licensing among Artisanal and Small-Scale Diamond Miners (ASDM) remain very limited. The PovertyReduction Strategy estimates that there are approximately 100,000 Artisanal and Small-scale Miners (ASM)and up to 500,000 diggers 3 in Liberia, which supports an additional 787,500 to 1,575,000 people indirectly. 4Registration of diamond production between 2008 and 2011 vary between 12 percent 5 and 1 percent in 2010.Only 368 ASMs obtained Class C Artisanal Diamond Mining licenses in 2010; 216 in 2011 (to date); and 19Class B Small-scale Diamond Mining licenses are in effect through 2011. 6 ASDM communities are2The line-up includes Arcelor Mittal, developing a $1.5 billion iron project; a Chinese firm, China Union, $2.6 billion; Sime Darby deal willinvest $800 million; Golden Veroleum, another agri-business, will invest $1.6 billion; BHP Billiton will invest $2.7 billion; and Amlib andAfrica Aura are investing tens of millions of dollars in Kokoya cestos and Gola Konneh to create Liberia’s first industrial deep-rock goldmines. The Liberian biofuel giant, Buchanan Renewables, agreed to invest $150 million. The government estimates between $10-$16 billionof investment attracted to Liberia over the past five years including China Union, Arcelor Mittal, Putu Severstal, BHP Billiton, Vale,Buchanan Renewables, SIFCA, Bob Johnson, Sime Darby, Golden Veroleum, and APM Meask.3International Alert, 2006. http://www.international-alert.org/resources/publications/current-state-diamond-mining-mano-river-basin-anduse-diamonds-tool-peacebuil.4USAID Governance and Economic Assistance Program (GEMAP). Recommendations for Class C Mining Regulations and theirimplementation and future amendments to the Mining and Minerals Act in Liberia. 2010. viii.5USAID GEMAP. 2010. 90; UNDP D4D, 2010. 51.6Mining Cadastre. Sept. 2011.PRADD LIBERIA: A REVIEW OF THE LEGAL, REGULATORY AND POLICY FRAMEWORKGOVERNING ARTISANAL DIAMOND MINING IN LIBERIA 1
Page 3: STUDY OFDEVELOPMENTAL STAGE OF CEPH
Page 7: ACRONYMS ANDABBREVIATIONSADMADRASDM
Page 12 and 13: characterized by extreme poverty, l
Page 14 and 15: Consultants conducted a desktop lit
Page 16 and 17: Liberia is a party to the United Na
Page 19 and 20: 3.0 GOVERNMENT’SINTERPRETATION OF
Page 21 and 22: 4.0 INCREASINGREGISTRATION OFARTISA
Page 23 and 24: 5.0 POLICY REFORMS5.1 DEVELOP AN AR
Page 25 and 26: 5.2 INTEGRATE ASDM INTO A BROADER N
Page 27: • Is it fair and reasonable that
Page 30 and 31: The Environmental Protection Agency
Page 32 and 33: As a result of the current legal st
Page 34 and 35: MLME could further consider allowin
Page 36 and 37: among miners that they can obtain h
Page 39 and 40: 8.0 ADMINISTRATIVEREFORMS8.1 ESTABL
Page 41: To facilitate joint ventures—priv
Page 45 and 46: BIBLIOGRAPHYLiberian Policies, Stat
Page 47 and 48: Green Advocates Jan.2009. Alluvial
Page 49: APPENDIX 1: INSTITUTIONSAND PERSONS
Page 52 and 53: • Proper consultation is essentia
Page 54: 4U.S. Agency for International Deve

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