Artisanal Diamond Mining: Addressing the Knowledge Gap
In the developed world, the word diamond immediately evokes the allure and sparkle of a polished brilliant. What does the word mean, however, for an artisanal diamond miner living in poverty?
Artisanal diamond mining accounts for 20% of global production and significantly impacts millions of lives in the developing world, particularly in Africa. “Artisanal” simply implies that the tools and equipment used by the miners are rudimentary. This type of mining is conducted predominantly by individuals, small groups, or families, who frequently migrate in search of the next deposit. The work is subsistence labor, and the miners typically sell to anyone willing to buy (often without the luxury of a legal transaction). Despite its numerous challenges, which also include smuggling and human rights abuses, artisanal mining is their principal form of income. But beyond the fact that diamonds can be exchanged for subsistence money, what do these miners know about them?
In many countries where artisanal mining is prevalent, miners often have an innate and comprehensive understanding of the material. For example, Sri Lankan gem miners can expertly locate and sort through the illam (gem gravel) and differentiate between the fine-quality and lesser-quality material. They have been doing this for thousands of years. But diamond mining is different, particularly in Africa, where the first known primary deposit was discovered less than 200 years ago. In the twentieth century, the system of grading based on the Four Cs (color, cut, clarity, and carat weight) established a framework for price setting in the diamond trade. This pricing system for polished material underlies the value of rough material and determines its selling price. Therefore, understanding the Four C s is vital to the effective trade of diamond rough.
However, the majority of artisanal miners in Africa do not yet have a strong working knowledge of rough diamond, placing them at a significant disadvantage when negotiating the price of rough with buyers. In 2022, the NGO Diamonds for Peace conducted basic training on rough diamond grading for Liberian miners (figures 1 and 2), a project funded by the World Bank and operating in collaboration with Empowerment Works Incorporated.
Liberia’s first major diamond deposit was discovered in 1957 along the Lofa River, close to the border of Sierra Leone to the north, which has much higher diamond production. Currently, figures stand at around 50,000 carats per annum. Production peaked at 600,000 carats annually in the 1970s (although most of that figure could be attributed to smuggled material coming in from bordering countries). Two civil wars, starting with a military coup in 1980, resulted in export sanctions imposed by the United Nations. Since 2007, when the country joined the Kimberley Process, diamond has been reestablished as an important mineral resource, particularly with the recent discovery of diamond-bearing kimberlites. These deposits have not been commercially exploited. Instead, the mining remains artisanal and the material is found primarily in alluvial placers along the Lofa River.
In pre-training interviews given to establish each miner’s level of knowledge, numerous misconceptions became evident. For instance, they valued a diamond based on carat weight alone, regardless of quality, color, and potential yield. They had also been told that colored diamonds have no value. Such diamond “myths” have disseminated over the past fifty years, and buyers are often quick to exploit the miners’ lack of knowledge.
For artisanal diamond mining to benefit the future of Liberian communities, the diamonds need to be traded for a price that reflects their real-time value according to their potential polished price (figure 3). The diamonds must be fed into the supply chain correctly, and the economic gain needs to find its way back into these rural communities. This boomerang-back of benefit is no easy feat in West Africa.
Yet small steps toward progress can be made by adjusting the information asymmetry. These artisanal miners need to understand the material they are working with. At the very least, it will give them a little more cash in their pocket and a slightly more comfortable standard of living. Regardless of the big picture, a simple win on that level is easily achievable.
Knowledge—and the sharing of it—is the key to building a stronger and more equitable supply chain. It is one thing for the supply chain to be traceable, but quite another for it to be equitable and ethical. To level the playing field, each player must be equally empowered. One thing that allows for such empowerment is knowledge. It is a simple right.
Diamonds for Peace, in collaboration with the author, is currently working on a next-stage “train to teach” program for the miners.
