Surat Diamond Dealers Exploit Loopholes in Sierra Leone’s Diamond Trade

Surat : Samrat Patel (name changed), a diamond dealer from Surat, has become a frequent visitor to Sierra Leone, a diamond mining country in West Africa. Patel, like many other dealers from Surat, travels to Sierra Leone multiple times a year, purchasing high-value rough diamonds from artisanal workers employed in the local diamond mines. However, these diamonds are often stolen from the mines by the workers and sold to dealers like Patel at throwaway prices, allowing them to earn significant profits back in Surat.

Sierra Leone, known for its diamond reserves, has attracted the attention of Surat’s diamond industry, primarily centered in the world’s largest diamond cutting and polishing center. Patel’s visits to Sierra Leone have resulted in a lucrative bounty of rough diamonds that he brings back with him. The diamonds are concealed in bags to evade the scrutiny of customs officials at the airport, as carbon-based diamonds are not easily detectable by sophisticated scanning machines.

Rajesh Gabani, another prominent diamond dealer, shares a similar story. Gabani, upon his arrival in Sierra Leone, hires a team of four to five armed security guards to ensure his safety during the diamond purchasing process. Each security guard costs him Rs 500 per day. After spending about a week in Sierra Leone, Gabani returns to Surat with diamonds worth over $3000, ready to sell them in the local market. Notably, these diamonds lack Kimberley Process (KP) certificates, which are essential for ensuring ethical sourcing and preventing the trade of conflict diamonds.

A diamond dealer who is a frequent visitor to Sierra Leone told The Blunt Times, “We have a network of artisanal workers in Sierra Leone from whom we purchase diamonds”. “They (artisanal workers) steal the diamonds from mines and they have to sell it within a day or two. Since we pay them in dollars, it is a quite a big deal for the poor workers”

There are many like Gabani who carry t-shirts, jeans, burmudas and other accessories to offer as gifts to the artisanal workers in Sierra Leone. This way, the diamond dealers develop a personal bonding with the workers and they do not have to return empty handed.

The prevalence of Surat diamond dealers visiting Sierra Leone and engaging in the trade of illicit diamonds has raised concerns within the global diamond industry. The Kimberley Process Certification Scheme, established in 2003, aims to prevent the circulation of conflict diamonds and ensure the legitimacy of diamond trade. However, the absence of KP certificates for these diamonds acquired in Sierra Leone raises questions about their origin and ethical compliance.

Sierra Leone is recognized as the world’s eighth-largest producer of diamonds, with a production output of 899kct in 2022, marking a 7% increase from the previous year. Over the five-year period leading up to 2021, diamond production in Sierra Leone grew at a compound annual growth rate (CAGR) of 31%.

The country’s diamond production is projected to increase by a CAGR of 2% from 2022 to 2026. While Sierra Leone accounts for only 0.76% of global diamond production, it remains a significant player in the industry, alongside major producers such as Russia, Botswana, Canada, and the Democratic Republic of the Congo.

The exploitation of Sierra Leone’s diamond trade by Surat diamond dealers raises serious ethical and legal concerns. The lack of proper certification and the questionable origin of these diamonds not only undermines the Kimberley Process but also tarnishes the reputation of the global diamond industry.

“Efforts must be made to curb such illicit practices and enforce stricter regulations to ensure transparency, ethical sourcing, and fair trade practices in the diamond market” said an expert in the diamond industry.

“As the Surat diamond dealers continue to profit from the diamonds acquired through questionable means in Sierra Leone, the need for increased oversight, collaboration between authorities, and stricter adherence to ethical standards becomes imperative. The responsible diamond industry stakeholders must work together to combat the trade of illicit diamonds, protect the interests of legitimate miners and traders, and uphold the integrity of the global diamond trade.” He added.