.

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2012 - U.S. Annual Report to the Kimberley Process
As of March 2013
This annual report is submitted to the Working Group on Monitoring on behalf of
the United States. The report was prepared by the Department of State, in
conjunction with representatives from other U.S. government agencies.
Pursuant to the Administrative Decision on Procedures for Respecting
Confidentiality within the Kimberley Process (KP) adopted in November 2010, the
United States does not wish to identify any statement or element of this report as
“KP ONLY.” Thus, the United States requests that this report be published on the
public-facing portion of the KP website. It will also be made available on the U.S.
Department of State website devoted to the Kimberley Process and U.S.
implementation: http://www.state.gov/e/eb/tfs/tfc/diamonds/index.htm
A. InstitutionalFramework
In 2003, the Clean Diamond Trade Act (Public Law 108-19) (CDTA) established a
Kimberley Process Implementation Coordinating Committee to coordinate
implementation of the Act. This U.S. government interagency committee includes
officials from the Departments of State, Treasury, Commerce, Homeland Security,
and the Office of the United States Trade Representative. Provisions of the CDTA
are carried out by several U.S. government agencies and the private United States
Kimberley Process Authority (USKPA). U.S. entities involved in implementation
of the Clean Diamond Trade Act include:
U.S. Focal Point:
Brad Brooks-Rubin
Special Advisor for Conflict Diamonds
U.S. Department of State
2201 C Street NW
Washington, DC 20520
Room 4657 EB/TFS
202-647-2856
brooks-rubinba@state.gov
or
USKimberleyProcess@state.gov
Exporting Authority
Carolyn Francis
U.S. Census Bureau

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4600 Silver Hill Road
Suitland, Maryland
carolyn.t.francis@census.gov
(301) 763-7016
Confirmations should be sent to: ftdkpc@census.gov
Importing Authority
U.S. Customs and Border Protection
1300 Pennsylvania Avenue NW
Room 5.2B
Washington, D.C. 20229
Rebecca Lucas, Office of International Trade, Chief, Enforcement Policy Branch
Rebecca.Lucas@dhs.gov
(202) 863-6557
United States Kimberley Process Authority
25 West 45th Street
Suite 1406
New York, NY 10036
Cecilia L. Gardner, General Counsel
(212) 997-2002
clgjvc@aol.com
B. Legal Framework
The CDTA provides the legal framework pursuant to which the United States
implements the Kimberley Process Certification Scheme
http://www.gpo.gov/fdsys/pkg/BILLS-108hr1584enr/pdf/BILLS-108hr1584enr.pdf
The CDTA is further implemented by Executive Order 13312 (July 29, 2003).
Pursuant to this Executive Order, the Department of the Treasury issued the Rough
Diamonds Control Regulations, on September 23, 2004 (31 CFR Part 592). The
Regulations have subsequently been amended, most recently on May 21, 2008.
The complete text of the Regulations can be accessed at:
http://www.gpo.gov/fdsys/pkg/CFR-2010-title31-vol3/pdf/CFR-2010-title31-vol3-
part592.pdf. The Census Bureau issued regulations on Automated Export System
(AES) reporting requirements for rough diamond shipments in October 2003 (15
CFR Part 30), but were amended most recently on March 14, 2013. The complete
text of the Regulations can be accessed at http://www.census.gov/foreign-
trade/regulations/index.html. Updated lists of Kimberley Process Participants are
published periodically in the Federal Register. The most recent list was updated on

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February 21, 2013; it can be accessed at:
https://www.federalregister.gov/articles/2013/02/21/2013-04007/list-of-
participating-countries-and-entities-hereinafter-known-as-participants-under-the-
clean
For more information on the legal framework for U.S. implementation of the
KimberleyProcess, see http://www.state.gov/e/eb/tfs/tfc/diamonds/index.htm
C.Export and Import Regimes/Compliance Improvement Efforts
In July 2012 in New York City, the United States convened a workshop composed
of agencies of the U.S. government to discuss diamond smuggling and gaps in the
U.S. export/import implementation and enforcement system. This was in response
to the Diamonds Without Borders report that had been prepared by Partnership
Africa Canada for the United States in February 2012 which conducted an
evaluation of the U.S. compliance system including through interviews with
representatives from a range of government, industry, and other entities.
Participant agencies included the U.S. Census Bureau, U.S. Customs and Border
Protection (CBP), U.S. Immigration and Customs Enforcement (ICE), Treasury
Department, the Federal Bureau of Investigation (FBI) and the State Department.
Industry association representatives and members of the U.S. diamond industry
were also invited to share their views. The meeting reviewed a number of
important issues regarding the United States system of internal controls related to
national KPCS implementation and has resulted in improved coordination within
the U.S. government.
In December 2012, the United States hosted its second Kimberley Process Peer
Review Visit. The peer review team, led by India with participation by Angola,
European Union, Russia, and the United Arab Emirates visited Washington DC
and New York, NY. The team met with U.S. government officials from all offices
involved with implementation of the KPCS and the Clean Diamond Trade Act
(CDTA), the U.S. Kimberley Process Authority (USKPA) and U.S. diamond
export licensees and other members of the private sector to review United States
implementation of the KPCS. Different agencies of the U.S. government
explained their roles under the CDTA and other U.S. domestic authorities. The
team also spent a day visiting field operations at Customs and Border Protection
facilities at John F. Kennedy Airport in New York. The U.S. was found to be
compliant with the KPCS minimum requirements. The review visit has resulted in
greater awareness of the KP across all U.S. government agencies and improved

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implementation and coordination among U.S. agencies and, between the private
sector and U.S. government agencies.
U.S. Customs and Border Protection (CBP) developed a Notice of Proposed
Rulemaking, published on August 15, 2012 in the Federal Register (Volume 77,
Number 158, Pages 48918-48922), restating pertinent provisions of the Rough
Diamonds Control Regulations and clarifying the recordkeeping responsibilities of
importers and exporters of rough diamonds. The Final Rule is scheduled to be
published in 2013.
CBP worked in conjunction with the Department of State to host a Kimberley
Process Certification Scheme (KP) Enforcement Seminar. This seminar was held
in conjunction with the Kimberley Process Plenary in November 2012. Customs
and law enforcement officials from ten governments, the European Commission,
and the World Customs Organization (WCO) participated in this government-only
event. Participating governments included Australia, Belgium, Cameroon, Canada,
China, Côte d’Ivoire, Germany, Singapore, Switzerland, and the United States.
The seminar attendees noted the importance of international cooperation in the
successful implementation of the KPCS and encouraged key players in the
diamond sector to remain engaged in the successful implementation of the KPCS.
The WCO presented information about international customs joint verification
operation in 2013 (Operation Cullinan) to support KPCS implementation. The
final communiqué included a recommendation from the customs/law enforcement
participants to encouragement engagement in the KPCS.
CBP field and Headquarters personnel receive numerous requests for information
from prospective importers and the public on the requirements of the KPCS. Some
of these communications include a request to review a KP Certificate for
authenticity. CBP works with the State Department, when possible, to provide
feedback to the prospective importer. CBP has been able to prevent importers from
making purchases that involved a fraudulent certificate and, in those cases, referred
the matter to ICE for possible investigation.
While CBP is the principal interdiction agency in the United States for the KPCS
and the CDTA, primary investigative responsibilities and duties are the
responsibility of Immigration and Customs Enforcement (ICE) Homeland Security
Investigations (HSI). HSI works closely with Department of State, CBP and the
U.S. Census Bureau and provides outreach to key private sector partners
susceptible to exploitation. Diamonds are readily susceptible to for use in trade-
based money laundering (TBML). HSI is the leading federal agency for

5.
investigating trade-based money laundering and provides the law enforcement
community and foreign counterparts the support, guidance, training, and tools
needed to successfully combat TBML.
HSI’s Trade Transparency Unit (TTU) utilizes customized tools, databases and
investigative methodologies to identify trade anomalies involving diamonds.
Recognizing this vulnerability in the trade system, HSI TTU developed a Baseline
Assessment on the Illicit Diamond Trade that was published in July 2012. This
assessment identified key vulnerabilities regarding the diamond trade, red flag
indicators for financial institutions, and provided information on major diamond
import/export countries as they relate to polished and rough diamonds.
HSI TTU shares trade data through its international partnerships and uses a
specialize software, the Data Analysis and Research for Trade Transparency
System (DARTTS) to analyze and investigate anomalies identified through the
comparison of international trade data. DARTTS is being used to determine if
diamonds are being mispriced or misclassified when they are moved across borders
During 2012, the FBI in conjunction with Gemological Institute of America (GIA)
sponsored its fifth two week course for law enforcement agents involved in
investigating jewelry crimes. Participants included members of the FBI, ICE, U.S.
local police departments and law enforcement agencies in South Africa, Canada,
and Hong Kong.
For information purposes only: the U.S. Treasury’s Internal Revenue Service
Small Business/Self Employed Division, under FinCEN’s delegated examination
authority, conducted approximately 320 exams during FY 2012 (Fiscal Year -
October 2011-September 2012) of dealers in precious metals, precious stones or
jewels under 31 CFR Part 1027. (Note: these numbers represent total examinations
which may include dealers in rough diamonds.) FinCEN is the Financial Crimes
Enforcement Network of the U.S. Treasury.
Outgoing Shipments
The U.S. system provides that the Exporting Authority, i.e. the U.S. Census
Bureau, issues export reporting requirements for the export of rough diamonds.
All shipments must be reported in the Automated Export System (AES) and the
information is maintained by the Census Bureau. Internal Transaction Numbers
(ITN) generated by the AES must be added to the U.S. KP certificate and
constitutes U.S. government validation. The U.S. Kimberley Process Authority
5

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(USKPA) publishes Kimberley Process certificates for rough diamond exports.
The USKPA currently has licensing agreements with 18 entities as of the end of
2012 and USKPA licensees issued 1,293 certificates in 2012. The USKPA
performs an annual, on-site performance review of selected licensees. The
USKPA’s annual review of selected licensees is included as an annex to the annual
review of the practices and procedures of the USKPA, which is sent by the State
Department to the U.S. Congress in July of each year.
During 2012, the Department of State continued to convene periodic
teleconferences with the USKPA and its licensees to provide an opportunity for
U.S. government agencies to communicate concerns or guidance directly to
exporters, as well as to respond to questions and requests for information posed by
the exporting community. These calls continue to produce important compliance
discussions and have enabled closer coordination with and oversight of the private
sector.
To complement existing activities, the Department of Homeland Security, through
CBP, continues to conduct examinations of targeted rough diamond export
shipments. In 2012, CBP conducted 8 inspections of outbound shipments.
Incoming Shipments
CBP is the Importing Authority responsible for implementing, enforcing, and
monitoring provisions of the CDTA.
Recognizing the need to develop more uniform enforcement practices, CBP issued
a policy memorandum to its field personnel in February 2008 emphasizing the
requirement for presentation of the KP certificate upon importation and the
requirement that rough diamond shipments be secured in tamper-resistant
packaging. CBP defines tamper-resistant packaging as “packaging having an
indicator or barrier to entry that could reasonably be expected to provide visible
evidence that tampering had occurred. Standard mailing and express consignment
packaging alone is not considered tamper resistant.” A version of this definition
was also included in a General Warning to the public issued by the Department of
State in December 2009.
CBP maintains a Cargo Systems Messaging Service (CSMS), which is a
searchable database of messages that are of interest to ABI Filers, ACE Event
Participants, ACE Portal Accounts, ACE Reports Users, Air Carriers, Ocean
Carriers, Periodic Monthly Statement Participants, Rail Carriers and Truck

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Carriers. During fiscal year 2012, the Census Bureau noted that rough diamond
import entries were being submitted in the system with the incorrect country code
used as the prefix to the Kimberley Process Certificate number. On August 14,
2012, CBP issued a message on CSMS highlighting the proper format of the
Kimberley Process Certificate.
In 2012, CBP conducted review of documentation for all inbound rough diamond
shipments and 469 physical inspections of inbound shipments. These
examinations reviewed 28 different importers of record. In 2012, CBP processed
two seizures that were in violation of the Kimberley Process Certification Scheme.
D. System of Internal Controls and Industry Self-regulation.
In order to strengthen implementation of the Kimberley Process Certification
Scheme, the U.S. diamond industry has implemented a system of warranties for
rough and polished diamonds and jewelry containing diamonds. Under this
system, all buyers and sellers of rough and polished diamonds make the following
statement on their invoices:
“The diamonds herein invoiced have been purchased from legitimate sources
not involved in funding conflict and in compliance with United Nations
resolutions. The seller hereby guarantees that these diamonds are conflict
free, based on personal knowledge and/or written guarantees provided by the
supplier of these diamonds.”
Several major U.S.-based jewelry retailers, including Tiffany, Helzberg, and Kay
Jewelers, publish policies on conflict diamonds on their websites. Jewelry trade
associations such as Jewelers of America have developed codes of conduct that list
member obligations regarding compliance with the Kimberley Process
Certification Scheme. The U.S. government does not conduct specific oversight or
enforcement related to the system of warranties.
The Department of State continues to promote the use of enhanced due diligence
and related voluntary efforts by the U.S. diamond industry. Several U.S. industry
associations and companies announced in October 2012 the introduction of a
Diamond Source Warranty Protocol, a voluntary contractual inventory
management tool that provides retailers and suppliers with a higher level of
assurance that a rough or polished diamond was not obtained from a Subject
Source.

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Finally, in addition to the formal visits conducted in conjunction with the USKPA
and 2012 KP Peer Review Visit, officials from the State Department, CBP, and
Census informally contacted and visited numerous diamond companies throughout
2012 to discuss the KP, the companies’ internal compliance efforts, and other
related issues. To promote KPCS compliance and awareness, the State
Department’s Assistant Secretary for Economic and Business Affairs hosted
several meetings with U.S. diamond and jewelry industry members in 2012.
E.Statistics
On January 1, 2009, the United States assumed the Chair of the Kimberley
Process’s Statistics Working Group. In this capacity, the United States provides
direct leadership to the Working Group's efforts to improve the submission and
analysis of statistical data. The U.S. Census Bureau of the Department of
Commerce (Census) continues to maintain the website it constructed to host KP
statistical data and has also worked to develop other functionalities necessary to
the Working Group’s activities, including the adoption of a new Administrative
Decision concerning KP data, the development of a new “statistical anomalies”
process and the methodology for the preparation, review and analysis of KP
statistical data.
In addition to its role as Working Group Chair, the Census Bureau also collects and
provides U.S. rough diamond trade statistics to the Kimberley Process website.
U.S. Geological Survey (USGS) experts have also conducted reviews of other
Kimberley Process Participants’ statistical submissions.
The Census Bureau has issued a “Notice of Request for Faxed Submission of
Kimberley Process Certificates” requiring copies of all Kimberley Process
Certificates to be faxed to a toll-free number (1-800-457-7328). The Census
Bureau has continued to reach out to U.S. importers and exporters not providing
faxed copies of KPCs to remind them of this requirement as a means to verify
import and export KP statistics provided to Census and the USKPA (exports). The
Census Bureau will continue to update prior years’ statistics as more information is
received.
The Census Bureau continues to reconcile U.S. statistics with our trading partners
for 2010-- 2012 but this process has not been completed. As a result, any necessary
changes will be incorporated at a later date. As in previous years, during the
reconciliation process that is based on U.S. Customs data and data provided by
bilateral partners, the Census Bureau uncovered several data discrepancies and

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contacted U.S. importers to verify information and to obtain KP certificates. When
discrepancies are identified, firms are contacted and efforts made to educate them
on the legal obligations applicable to imports and exports of rough diamonds.
In 2012, the majority of identified instances in which KP certificates were not faxed
to the Census Bureau involved low carat weight and/or low value shipments likely
purchased through websites by one-time importers not generally accustomed to
trading in rough diamonds. These one-time importers are generally not aware of
their legal obligations; in such cases, the importers receive direct communication
informing them of the applicable requirements, including by telephone call and/or
letters.
The Census Bureau conducted bilateral reconciliation of 2010 trade statistics with
Armenia, Australia, Botswana, Brazil, Canada, People’s Republic of China,
Democratic Republic of the Congo, European Union, Ghana, Guinea, Guyana,
India, Israel, Japan, Republic of Korea, Liberia, Mexico, Namibia, New Zealand,
Norway, Russian Federation, Sierra Leone, Singapore, South Africa, Switzerland ,
Thailand, Turkey, United Arab Emirates, Vietnam, and the Rough Diamond
Trading Entity of Chinese Taipei.
The Census Bureau also conducted bilateral reconciliation of trade statistics for
2011 with Armenia, Australia, Botswana, Brazil, Canada, People’s Republic of
China, Democratic Republic of the Congo, Croatia, European Union, Guinea,
Guyana, India, Indonesia, Israel, Japan, Republic of Korea, Malaysia, Mauritius,
Mexico, Namibia, New Zealand, Norway, Russian Federation, Sierra Leone,
Singapore, South Africa, Switzerland, Tanzania, Thailand, United Arab Emirates,
Vietnam, and the Rough Diamond Trading Entity of Chinese Taipei.
Finally, the Census Bureau conducted bilateral reconciliation of trade statistics for
2012 with Armenia, Australia, Botswana, Brazil, Canada, People’s Republic of
China, Democratic Republic of the Congo, European Community, Ghana, Guyana,
India, Israel, Japan, Republic of Korea, Liberia, Malaysia, Mexico, Namibia, New
Zealand, Russian Federation, Sierra Leone, Singapore, South Africa, Switzerland,
Thailand, Turkey, Ukraine, United Arab Emirates, Vietnam, and the Rough
Diamond Trading Entity of Chinese Taipei.
U.S. Exports of Rough Diamond in 2012
The United States is not a rough diamond producer. In 2010, however, the United
States did work closely with the Crater of Diamonds State Park in the state of

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Arkansas to develop a process to ensure that visitors to the park who dig for rough
diamonds are aware of the requirements of the CDTA and the KPCS. The
Department of State continues to work with the Crater of Diamonds to improve its
efforts to implement the KPCS.
U.S. exports are re-exports of rough diamonds imported from other Kimberley
Process Participants. The United States has submitted trade data for 2012 and KP
export certificate counts by Participant for 2012. The United States also provided
certificate counts for imports by Participant, and quarterly import certificate
counts.
According to published Census Bureau statistics, rough diamond re-exports from
the United States in 2012 totaled $389.1 million – a 14.6percent decrease from the
revised 2011 level of $455.6million. U.S. re-exports are primarily to three KP
Participants: Israel ($129.0 million), European Union ($116.1 million), and
Switzerland ($39.6 million), which were the destination of 73.2 percent of U.S. re-
exports of rough diamonds in 2012.
Statistics provided by the USKPA (March 2013) indicate that 1,293 Kimberley
Process Certificates were issued during 2012. (Note this count includes voided
certificates and one technical certificate.) These certificates covered exports to 24
participants and approved entities, detailed in the table below.
USKPA Certificates Issued in 2012
Country Name Number of KP Certificates
Armenia 5
Australia 30
Botswana 8
Brazil 8
Canada 144
China, People's Republic of 61
European Union 473
India 51
Israel 152
Japan 146
Korea, Republic of 64
Malaysia 2
Mexico 79

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Namibia 10
New Zealand 1
Russian Federation 7
Singapore 1
South Africa 17
Switzerland 13
Thailand 11
Turkey 1
Ukraine 1
United Arab Emirates 5
R.D.T.E. Chinese Taipei 3
Total KP Certificates 1,293
U.S. Imports of Rough Diamonds in 2012
The United States imported $462.1 million in rough diamonds in 2012, a decrease
of 28.5 percent from revised 2011 level of $646.7 million. The United States
imports most of its rough diamonds from only a few Participants. The top three
Participants in 2012 were the Israel ($175.6.1 million), European Union ($164.6
million) and the Russian Federation ($33.2 million). The top three providers of
rough diamonds (Israel, European Union and the Russian Federation) furnished
80.8 percent of U.S. rough diamond imports in 2012.
According to the Census Bureau, the United States imported rough diamonds from
24 KP Participants and approved entities in 2012, including: Armenia, Australia,
Botswana, Brazil, Canada, People’s Republic of China, Democratic Republic of
the Congo, European Union, Ghana, Guyana, India, Israel, Japan, Republic of
Korea, Liberia, Mexico, Namibia, Russian Federation, Sierra Leone, South Africa,
Switzerland, United Arab Emirates Vietnam, and the Rough Diamond Trading
Entity of Chinese Taipei.
The United States has provided reports on these 2012 imports, including the value
and carat weight and the country of provenance and country of origin, to the
Kimberley Process website, in accordance with Annex III of the KPCS.

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F.Implementation of Specific Recommendations
Previous reports have documented the processes undertaken to implement the
recommendations provided by the 2005 KP Peer Review Visit. The United States
is already addressing processes discussed during the 2012 KP Review Visit.
G.Infringements
CBP seized 2 shipments found to be in violation of the CDTA in 2012.
The United States identified counterfeit certificates from Ghana and Guinea in
2012. Pursuant to the Administrative Decision on Cooperation and Enforcement,
the United States reported on these counterfeit certificates to the WGM and shared
information directly with enforcement officials in these countries. The United
States is not aware of further enforcement action taken.
In 2009, the Department of State coordinated a process with CBP and the
Smithsonian Institution to transport all forfeited diamonds to the Smithsonian for
storage and, consistent with applicable law, possible research determined to be in
U.S. government interests.
The United States developed a template for the sharing of information concerning
seizures/forfeitures requested by other KP Participants. The template was
circulated through the WGDE and is available on-line at:
http://www.cbp.gov/linkhandler/cgov/trade/trade_programs/diamonds/not_kim.ctt/
not_kim.pdf
The United States encourages the use of this template by other Participants.
H.Technical Assistance
USAID
In 2012, the U.S. State Department, the U.S. Agency for International
Development (USAID), and the U.S. Geological Survey (USGS) cooperated to
provide technical assistance related to the Central African Republic, Cote d’Ivoire,
Guinea, and Liberia. USAID continued to support the Property Rights and
Artisanal Diamond Development (PRADD) project in the Central African
Republic and Liberia.

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PRADD is a joint Department of State/USAID initiative to assist the governments
of the Central African Republic (CAR) and of Liberia to fulfill their commitment to
the Kimberley Process Certification Scheme. Launched in CAR in 2007 as a pilot
initiative, in Guinea in 2008 and in Liberia in late 2010, the project aims to increase
the amount of alluvial diamonds entering the formal chain of custody
while improving the benefits accruing to mining communities through an approach
of strengthening property rights. Since 2007, funds were transferred from the State
AF Regional program to USAID’s Bureau for Economic Growth, Education and
Environment (E3) for implementation of the Property Rights and Artisanal
Diamond Development (PRADD) project in the Central African Republic (CAR).
Central African Republic
Since the project’s inception in 2008, PRADD has identified claims to 5786
artisanal diamond mining sites. Of these, 3,896 sites have been mapped with GPS
coordinates and a further 2,849 sites have been issued property rights certificates
by the government of the Central African Republic (CAR). These certificates are
now used by judicial and mining authorities to resolve land and related mining
disputes. Due to the success of PRADD’s property rights work in resolving
disputes and encouraging local investment, the Government of the Central African
Republic, led by the Prime Minister’s Office, has initiated a comprehensive land
reform process based on the UNFAO Voluntary Guidelines (VG) on the
Responsible Governance of the Tenure of Land, and on the Land Policy Initiative
(LPI) of the African Union.
As a result of PRADD research and advocacy, the CAR Government lowered the
mining license fees by 36 percent in order to reduce the cost of formalization. As
of September 2012, 3,360 miners had purchased licenses, which is nearly double
the annual total from 2010. Legal diamond production in provinces where
PRADD operates rose significantly, from 4.1 percent of national diamond
production in 2009, to 68 percent in 2012.
As part of PRADD’s efforts to encourage economic development and
environmental rehabilitation, a total of 591 exhausted mining sites have been
rehabilitated for other livelihood purposes such as fish farming, tree farming and
vegetable gardening. Household incomes in PRADD project areas are nine times
higher than the prior year as artisanal miners now earn additional income from
these newly introduced livelihoods, including fish farming and vegetable gardens
in rehabilitated mine pits.

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A new income generating activity in FY 2012 was the establishment of
community-based mining and agricultural equipment rental pools, managed by
community-based “benefit societies” which were established by PRADD. The
rental pools not only generate significant income for local communities, but also
provide artisanal miners with safe, reliable operating equipment to increase their
production which, in turn, ensures more diamonds enter the legal supply chain. In
just the first three months, the revenue generated from the equipment rental pools
totaled $1,949 in gross rentals; after payment of the managers’ salaries and
maintenance costs, the profit was $1,067, or a 55% margin.
In the first quarter of 2012, PRADD and the U.S. Embassy organized a trade visit
of North American diamond traders and jewelers to the capital of Bangui, which
focused on developing a possible direct supply chain with Central African artisanal
diamond miners. Over a period of 10 days, a series of workshops, meetings and
visits with national stakeholders helped outline the risks and opportunities of this
potential scheme but also resulted in a newly proposed supply chain model.
Discussions are ongoing with the North American diamond traders and jewelers
regarding formation of a public-private partnership.
Finally, in cooperation with the Gemological Institute of America diamond
valuation training was offered for five representatives from local mining
communities and five experts from the National Export Office appointed by the
Ministry of Mines. Such training will help ensure miners are better informed of
the value of the diamonds and are able to capture greater profits for their labor.
Liberia
During 2012, the PRADD project in Liberia conducted participatory mapping of 17
villages resulting in the identification and validation of over 500 mining claims and
documentation of land tenure security issues for mining and livelihood activities.
In addition, the project trained four conflict resolutions committees (247
participants) in alternative dispute resolution and an additional 557 people in
improved diamond production and sales record keeping. The project also
supported updating and maintenance of the Government Diamond Office (GDO)
database and rehabilitated ten Regional Diamond Offices (RDOs), and equipped
them and the GDO with HF solar-powered radios in order to allow them to better
share information between field offices and Monrovia.

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U.S. Geological Survey
With financial support from the Department of State, the USGS has been
conducting technical assistance tasks for the Kimberley Process during the
calendar year 2012. This support can be divided into several parts, as follows:
1. Guinea
During a USGS-led workshop in Conakry, Guinea in June 2011, arrangements
were made between the USGS, the Ministère des Mines et de la Géologie (MMG),
and the civil society organization the Centre du Commerce International pour le
Développement (CECIDE) for the continuation of fieldwork, to be carried out by
geologists from the MMG and CECIDE. In March 2012, a joint MMG-CECIDE
team conducted fieldwork at five artisanal diamond mining sites in the Kindia and
Télimélé Prefectures of western Guinea. Later that month, the USGS returned and
conducted a joint fieldwork mission with geologists from the MMG and CECIDE,
visiting seven artisanal diamond mining sites in the Forécariah and Coyah
Prefectures of western Guinea. A final fieldwork mission was conducted in May
2012 by the MMG-CECIDE team, in which seventeen diamond mining sites in the
intensively mined Macenta and Kérouané Prefectures of southeastern Guinea were
visited. The data collected by the Guinean partners was transferred by CECIDE
directly to USGS for analysis.
This data contributed significantly to the USGS’s final assessment of Guinea’s
diamond deposits, published in the draft report “Alluvial Diamond Resource
Potential and Production Capacity Assessment of Guinea”, presented to members
of the KP and the Guinean government, including Mme. Anne Marie Sakho of the
Bureau National d’Expertise des Diamants (BNE) and Mme. Fatou Gaye of the
MMG, in June 2012 at the KP Intercessional in Washington, D.C. This report was
published in November 2012 and presented to the KP at Plenary. The results of the
assessment were formally accepted by the KP Working Group of Diamond
Experts (WGDE) and representatives of Guinea at Plenary. A brief USGS Fact
Sheet summarizing the results of the Guinea assessment was also published in
November 2012 and made available at Plenary. Finally, “A methodological toolkit
for conducting field assessments of artisanal alluvial diamond deposits” was
presented and disseminated at Plenary in draft form. The goal of this document is
to provide a detailed guide for conducting fieldwork and collecting the types of
data necessary for completing a diamond resource assessment, with a focus on the
collaborative multi-stakeholder approach undertaken in the assessment of Guinea’s
diamond deposits.

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• The Guinea assessment can be found online at:
http://pubs.usgs.gov/sir/2012/5256/
• The Guinea Fact Sheet can be found online at:
http://pubs.usgs.gov/fs/2012/3129/
• A Fact Sheet summarizing the USGS methodology for conducting
assessments can be found online at: http://pubs.usgs.gov/fs/2012/3128/
2. Côte d’Ivoire
The USGS continues satellite imagery monitoring of the diamond resources of
Séguéla and Tortiya in northern Côte d’Ivoire. The assessment involves the
acquisition of high resolution satellite imagery and radar data covering the years
2005-2013. Satellite imagery was used to catalog the location and size of all active
diamond mining pits from 2006-2012, to quantify trends in the level of mining
activity and estimate production capacity. Imagery was recently acquired for
January 2013, and the location and characterization of active mining pits for that
date is currently underway.
A reconnaissance assessment of the alluvial diamond resource and production
capacity of Séguéla and Tortiya was completed and is currently in draft form. This
preliminary analysis was conducted without fieldwork data, and was based on a
detailed analysis of active mining pits catalogued for the years 2006-2012 and
archival geologic data. The results of the reconnaissance investigation were
initially presented to the KP at Intercessional in 2012. The report was also
provided to Mme. Thes, Côte d’Ivoire’s Permanent Secretary for the KP. An
updated version of the report was presented at Plenary to include data collected
during a joint USGS-WGDE-UN Group of Experts (UNGoE) field mission to
Séguéla in September 2012. The goal of the fieldwork was to collect on-the-
ground data to verify and validate the analysis presented in the preliminary report.
A USGS Fact Sheet summarizing the results of the reconnaissance report was also
published and disseminated at Plenary. Discussions with the WGDE, a UNGroup
of Experts representative, and representatives from Côte d’Ivoire at Plenary led to
the scheduling of an additional fieldwork mission to Côte d’Ivoire in F
• The Côte d’Ivoire Fact Sheet can be found online at:
http://pubs.usgs.gov/fs/2012/3130/

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The USGS is also currently working with the European Joint Research Centre
(JRC) to develop and publish a common methodology for the identification and
validation of active mine sites in satellite imagery. This includes the development
of a detailed guide for the visual interpretation of pits from satellite imagery as
well as a methodology for testing the accuracy of the pit identification
methodology. To date, the USGS has contributed a draft summarizing a pit
identification methodology and a preliminary accuracy assessment of the
methodology.
3. The Central African Republic (CAR)
Following the outbreak of rebel activity by the Seleka coalition in CAR in
December 2012, the USGS began developing and releasing to the KP a series of
maps highlighting rebel movements in relationship to the country’s known
diamond deposits. To date, six maps have been produced updating activities and
are made available on the KP website’s home page in both English and French.
The most recent map is current as of March 21, 2013. The USGS intends to
continue monitoring the situation and assist the KP through the provision of
updated maps as deemed necessary.
4. West African Diamond Database
Since 2007, the USGS has been working to develop and compile a comprehensive
diamond database of West Africa. At present, the database includes the countries
of Mali, Ghana, Guinea, Côte d’Ivoire, Sierra Leone, Liberia, and Burkina Faso. A
Geographical Information Systems (GIS) database containing known primary and
secondary diamond occurrences in West Africa is being developed and includes
information on the geographic location, deposit type, and characteristics of the
diamonds. The database is frequently updated and research continues on the
compilation of information on additional countries in the region. In particular,
locations of known diamond occurrences in West Africa have been added to the
database for Côte d’Ivoire (578 occurrences), Guinea (671 occurrences), and
Liberia (on-going). As archival research continues in these three countries, the
number of diamond occurrences in the database is expected to rise. In addition to
information on diamond deposits, geologic and base map features have also been
compiled as part of the West African Diamond Database at a scale of 1:1,000,000.

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5. Other
Following the KP Intersessional, the USGS participated in the World Bank
Development Conference “Enhancing the Development Potential of Artisanal and
Small-Scale Mining” in June 2012 as part of a roundtable on artisanal mining.
I. Miscellaneous
The United States was the KP Chair during 2012 and under the leadership of
Ambassador Gillian Milovanovic, provided support to the administrative and
program goals of the KP. During the Chairmanship, the primary goals for the U.S.
were to strengthen the KP through an array of efforts to improve enforcement and
implementation, provide greater technical and development assistance to diamond
producing countries (especially related to artisanal mining), establish an
administrative support mechanism and broaden the KP’s definition of “conflict
diamond”.
The KP now has established an administrative support mechanism supported by
the World Diamond Council. The U.S. hosted a seminar for customs and law
enforcement agencies as a side meeting to the KP Plenary and as a result, the
World Customs Organization will implement “Operation Cullinan”, a joint control
exercise for rough diamonds in 2013. At the 2012 Plenary, the KP approved the
U.S.-drafted Washington Declaration, which reaffirms the KP’s commitment to
artisanal mining, including specific policy goals designed to advance the
development and formalization of the artisanal diamond mining sector. The U.S.
was also active in working with the World Bank to design the “Enhancing the
Development Potential of Artisanal and Small-Scale Mining” conference held in
June 2012 at the World Bank.
During 2012, the U.S. also participated in the following peer review visits and
review missions:
Republic of Cameroon
Republic of Kazakhstan
Lebanese Republic
Republic of Panama (mission)