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REMARKS BY MINISTER OF MINERAL RESOURCES MS SUSAN
SHABANGU, MP AT THE KPCS INTERCESSIONAL MEETING, IN
WASHINGTON DC, 4TH
JUNE 2012

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Ambassador Gillian A. Milovanovic: Chairperson of the Kimberley
Process
Chairs of the Working Groups
Mr. Eli Izhakoff, President of the WDC
Mr. Edgar Carvallo: Executive Secretariat of ADPA
Coalition of Civil Societies
Distinguished Guests
Ladies and gentlemen
I am greatly indebted as Vice- Chair to have been afforded an opportunity
to address this esteemed gathering. It feels like yesterday when we
gathered in Kinshasa (DRC), and successfully managed through the
collective efforts of participants and most importantly through consensus
resolved challenges that constantly present themselves in our industry.
Today in Washington DC we face a different albeit equally important
challenge, which was aptly summarized by Ambassador Milovanovic during

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her address to the WDC and I quote “the KP can evolve in a careful way,
with planning and forethought”.
Today‟s gathering brings together leaders from a wide variety of
stakeholders to assess the progress made by KP and discuss emerging
issues and challenges.
These discussions are important, as KP has continued to play a critical role
in the diamond industry and also in economies of many countries,
especially developing countries. Diamonds are the springboard from which
many producer countries, many of which are developing countries, launch
initiatives to expand and diversify the productive capacity of their
economies to create necessary jobs.
The KP plays an important role in Africa, as it has increased transparency
in the diamond trade and ensured that diamond revenue is effectively and
appropriately used towards social development. It is widely accepted that
the creation of a sustainable future for Africa lies in its ability to develop and
maximize its natural resources and therefore diamonds play a major role in
these efforts. In addition, revenue from diamonds assume an increased

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importance in helping previously war-torn countries to establish economic
stability and rebuilding infrastructure, health services and education
systems.
The diamond industry provides livelihoods for millions of people around the
globe. In southern Africa, for example, more than 38,000 people are
directly employed by the diamond industry. These employment
opportunities not only allow thousands of Africans to earn an income,
obtain healthcare, create a better home environment, provide education for
their children but also create subsequent indirect employment. Thereby
expanding the communities around where diamonds are found and offering
broader opportunities to these communities.
The impact of the diamond industry on developing economies in African
countries should not be underestimated. In these countries, efforts to boost
entrepreneurial skills and foreign direct investment (FDI) can benefit from a
proactive and focused policy framework aimed towards diamond
beneficiation and jewellery manufacturing.

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Mineral beneficiation in general, and diamond cutting, polishing and
jewellery manufacturing in particular, is not optional for the diamond
producing countries considering the immense benefits. It will be prudent
for developing countries to advance policies or plans to increase
beneficiation of rough diamonds in their respective countries. In South
Africa we have already advanced a beneficiation strategy to augment
beneficiation of selected minerals including diamonds. The success in
beneficiating will depend on the availability of the necessary skills and
continued capacity building. It goes without saying, that there will be a need
to generate partnerships between developing and developed countries
which often have the required skills.
Ladies and Gentlemen, I am pleased to note the Association of African
Diamond Producing Countries (ADPA) request for Observer status in the
KP as submitted to the Participation Committee. ADPA has succeeded in
creating a climate which to a large extent must be credited for its
contribution to the stability and growth of the diamond industry in Africa. I
believe that its participation will strengthen and assist in the many
successes of the KP. The audience gathered here knows of the successes
of which I refer.

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The organisation has evolved into an effective mechanism for stemming
the trade in conflict diamonds and is recognized as a unique conflict-
prevention instrument to promote peace and security. The joint efforts of
governments, industry leaders and civil society representatives have
enabled the KP to successfully curb the flow of conflict diamonds in a very
short period of time. Diamond experts estimate that conflict diamonds now
represent a fraction of one percent of the international trade in diamonds,
compared to estimates of up to 15% in the 1990s. Through interventions
employed by its various Working Groups, the KP can pat itself on the back
in that more than 99% of the global diamond production is certified under
the KPCS. That has been the KP‟s most remarkable contribution to a
peaceful world, which should be measured not in terms of carats, but by
the impact it has had on ordinary people‟s lives.
The KP has done more than just stem the flow of conflict diamonds; it has
also helped stabilize fragile countries and supported their development.
The KP has made life difficult for criminal activity in that it has brought large
volumes of diamonds onto the legal market that would otherwise not have
made it to these markets. Furthermore, countries such as Angola, Sierra

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Leone, the Democratic Republic of Congo and recently Zimbabwe are able
to positively realize benefits from the sale of their diamonds.
Yes, we have been successful but those very successes did not come
without difficulties. The environment within which the diamond industry
operates is dynamic. Accordingly, multilateral institutions that govern the
trade of diamonds should respond to the dynamic situations, which are
ever evolving and presenting new challenges. These challenges can no
longer be confined to stemming the trade of conflict diamonds but to
ensuring that we support the fledgling democracies and emergent
economies previously ravaged by conflict fuelled by the illicit trade of this
commodity. It is important that this commodity, which has to some
represented a symbol of a symbol of oppression, violence and inequality,
be transformed into a symbol of hope and prosperity. We can achieve this,
with one question: “How do we perfect and modernize our existing system
without compromising the KP‟s initial mandate and founding principles?
Honourable participants, I look forward to the presentations by the Working
Groups particularly that of the Ad Hoc Committee on KP Reform, ably led
by Botswana, which will report on issues relating to the establishment of

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the Administrative Support Mechanism (Secretariat). The establishment of
the Secretariat, I believe will go a long way in ensuring the effective and
efficient administration of the KP. In identifying the appropriate institution to
host the Secretariat, it is important that a transparent and inclusive process
be followed thus ensuring that the Secretariat gets the necessary support
from all participants. It is further anticipated that the report will also dwell on
the review of the KP core documents and the proposed extension of the KP
Chair‟s tenure.
The Ad Hoc Committee‟s work will to a great extent assist and guide this
gathering in deliberating the aforementioned proposals in the various
committee‟s to ensure that we do not lose sight of our initial mandate and
objective. Suffice to say on this issue that in our endeavour to review and
realign the KP core documents caution must be exercised against widening
the scope of the KP mandate thereby duplicating the functions of other
international institutions. I further need to point out that over regulating the
diamond industry may lead to unintended consequences that could reverse
the laudable progress and achievements that we have made since the
establishment of the Kimberley Process.

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The challenges relating to the compliance with the KP minimum standards
by Venezuela, as highlighted at the Kinshasa Plenary 2011, may need to
be revisited to assure that the necessary guidance and support is provided
to Venezuela in respect of their compliance with the KP minimum
standards. While it is important that the KP should strive to foster a culture
of compliance which in turn leads to improved governance and
transparency in the diamond trade, this however should not give rise to
exclusionary practices. KP should move away from singling out particular
countries and rather display an appetite for the consistent and fair
application of its rules and procedures.
The KP family illustrated their willingness to work together on resolving the
Zimbabwean impasse, in a spirit and manner in what we in South Africa
refer to as “UBUNTU” (meaning the spirit of „humanity‟). Despite, the
challenges encountered during this process, I would like to commend all
the participants for their determination, which eventually led to the
consensus reached by plenary permitting Zimbabwe to trade in its
diamonds. The same level of support should be given not only to
Venezuela but all participants who may require such support and
assistance.

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I must also acknowledge the achievements and activities of the other
Working Groups and subsidiary bodies in carrying out their tasks towards
ensuring the sustainability of the KP, especially the WGDE and of course
South Africa and USA‟s contribution on diamond foot-printing. This sterling
work can only contribute positively to strengthening the mandate of the KP
by confirming the origins of rough diamonds thereby ensuring
transparency.
It goes without saying that South Africa would like to see the KP evolve not
only in terms of its set goals and objectives but also in terms of enhancing
its participation. South Africa will continue to play a pivotal role within the
Participation Committee in providing assistance to prospective participants
who are keen to join the KP family. The more countries we manage to
convince to become participants of the KP, the closer we will get to
achieving our ultimate goal of operating a sustainable diamond industry.
As vice chair South Africa will continue to offer its full support to the Chair
and the KP family and I am confident that the coming days will be fruitful in
achieving our intended objectives.

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Lastly, I wish to thank the government of USA for its hospitality.
I THANK YOU