In the diamond industry where a diamond comes from is one of the most important aspects of valuing the stone. In Africa, there have been those who have used diamonds to fund violence through the countries where diamond mining takes place. This has led to the creation of the Kimberly Process, which is a band of countries intent on banning diamonds mined for the purpose of violence. When rebels sell the diamonds to buy guns to kill innocent people, consumers may end up paying for and indirectly supporting this type of activity, which can truly be a moral hazard for those involved. The Kimberly Process exists to boycott these diamonds, but the lines often get blurred and the Kimberly Process is not without its faults and detractors. Recently, much controversy has surrounded diamond mines in Zimbabwe where hundreds have been killed and much violence has taken place.
In what is considered an unprecedented move, the Rapaport Diamond Trading Network has banned all diamonds coming from a specific mine in Zimbabwe due to the controversy and violence surrounding the diamonds. This is significant, because the Kimberly Process has certified and released the diamonds for sale, but the Rapaport Network will not acknowledge them as “clean”, according to the Kimberly Process. They believe that the violence perpetrated at the mine justifies their ban. The Kimberly Process officials have noted that the mines in question are operating at minimum standards, but are very narrow in their focus to only blood diamonds, whereas the Rapaport Network wants to make sure that all diamonds sold are done so free of human suffering of any kind. Many atrocities have been uncovered at Mutare diamond fields including countless rapes reported by female miners and child labor complaints, where children have been kidnapped and forced to work for nothing. With over 214 allegedly illegal miners killed, it is no wonder the mine and surrounding area is in question.
Hopefully, the actions taken by Rappaport will shine a spotlight on the violence and make consumers more aware of the trouble ongoing in this part of the world. Just like when people scream and yell about underpaid workers, this situation needs to be resolved in a non-violent manner so that this beautiful, rare gemstone can be mined legally and sold to the end-user without all of the controversy. Workers need to be paid fairly and treated humanely before we can truly justify the prices paid for diamonds. Unfortunately, the money from those sales goes to a few powerful people and the workers are left in the dark to be violated and continue a life of absolute poverty. Those who feel the diamonds should be sold, continue to mention that the money from their sale will benefit the area, but that remains to be seen as only a small amount of previous profit went to the area and the workers. Hopefully, this can change and the money goes to further the people and workers in the Mutare mining area and their future.