The Special Counselor for Diamonds of the Central African Republic issued a communiqué this week announcing a reform of the country’s diamond mining sector.
In the document, the
If diamond houses fail to export $3 million per quarter, they could lose their license
These houses are also being encouraged to demonstrate their capability to formalize exports and to withdraw from any engagement in the informal circuit.
“After a trial period which will end on 31 December 2019, the buying houses that have passed the conditions will enter into a contract with the CAR Government which will stipulate the due diligence sourcing protocols,” the release reads.
The official dossier states that the reason behind such measures is the dire need to bring diamond production back to the formal market.
According to the document, in 2018, revenue from diamond production reached $2.3 million while in 2012 it reached $62 million. A 97% drop in exports explains the dramatic change.
“Going forward, the CAR’s Government will stand for a bold new and drastic approach where full transparency and proper due diligence protocols, traceability of individual parcel and OECD Due Diligence Guidance will be crucial,” the brief reads.