Diamonds lure wealth, conflict to African nations

Diamond mining

 South Africa is a developing nation with an abundant supply of resources and a stock exchange that ranks among the 10 largest in the world. But the nation located at the tip of the African continent suffered for years under apartheid and still wrestles with high unemployment and economic hazards.

Apartheid was the policy of political and economic racial segregation officially sanctioned by the government until 1991.

If there were a bright spot in South Africa's economic history, it would have been the discovery of diamond deposits in the mid-to-late 1800s.

"If one puts it in historic context, the first diamond officially found in South Africa was discovered in 1866," said Brian Roodt, corporate affairs manager of De Beers Group, the largest diamond marketer in the world.

Hope Town, South Africa, a community perched on the banks of the Orange River just south of Kimberly, claims to be the place where the first dazzling gem was found.

"With the discovery of the diamonds here in the Kimberley area, the whole evolution of modern industrial South Africa, as we know it, really began," Roodt said of the diamond discovery.

The discovery of gold came soon after in the same area, but it was the finding of the colorless gem that jump-started an economically stalled nation.

"Prior to the discovery of diamonds, South Africa was essentially an agricultural outback, and ships plying between Europe and the East used to stop here to replenish their supplies," Roodt said. "So it was the uncovering of diamonds that really triggered the development of modern industrial South Africa."

While diamond mining has been a boon to South Africa and neighboring Botswana, elsewhere on the African continent, in nations such as Angola, Sierra Leone and the Democratic Republic of Congo, the valuable gems have been a source of horror.

Control over diamond mines in these nations is inextricably linked to bloody civil wars fraught with human rights abuses and atrocities.

Known as "blood" diamonds or "conflict" diamonds, gems mined from conflicted nations account for up to 4 percent of the global diamond market, according to the diamond industry. Human rights advocates dispute that figure, arguing that as many as 15 percent of all diamonds on the market could be "blood" diamonds.

De Beers defines conflict diamonds as "diamonds which originate from areas in Africa controlled by forces fighting the legitimate and internationally recognised government of the relevant country."

An inter-governmental forum mandated by the United Nations, dubbed the "Kimberly Process," hopes to curb the number of diamonds that reach the public from exploited and war-torn nations.

It calls for the certification of all rough diamonds, so the consumer may obtain the entire history of any diamond -- from where it was mined to where it was cut.

"If everyone is concerned about what is happening in terms of 'conflict' diamonds, and insists on a certificate of provenance before doing a transaction in diamonds, that will filter, and even marginalize, people that are dealing in 'conflict' diamonds," said Peter Moeti, De Beers production manager. "They will run out of people to sell to."

Following is a timeline of recent major events in three African countries -- Sierra Leone, Angola and the Democratic Republic of Congo -- involving "conflict" diamonds.

1991 -- Former army Corporal Foday Sankoh leads Revolutionary United Front (RUF) attacks on Sierra Leone border towns from Liberia.

1992 -- RUF starts to target civilians in Sierra Leone, their hallmark being amputations. 120,000 flee to Guinea.

1994 -- RUF takes over Sierra Leone diamond areas. The capital Freetown is threatened. More than 50,000 have been killed and about half the country's 4.5 million people have been displaced.

1995 -- RUF beaten back from Freetown and diamond areas liberated.

1996 -- Sierra Leone elections marred by RUF violence. Ahmed Tejan Kabbah becomes president. RUF and Kabbah sign a peace accord.

1997 -- Soldiers release 600 prison inmates and seize power to form the Armed Forces Ruling Council. Kabbah flees. Major Johnny Paul Koroma, a former coup plotter, becomes chairman and invites RUF to join government.

1998 -- ECOMOG (Economic Community Cease-fire Monitoring Group) launches offensive on Freetown driving out AFRC/RUF. Kabbah returns. Sierra Leone armed forces disbanded. AFRC/RUF continue to attack towns and villages throughout country. U.N. peacekeepers sent in.

1999 -- AFRC/RUF attack Freetown killing 6,000 civilians before ECOMOG push them back. Peace setllement agreed. Foday Sankoh given role in government. U.N. approves 6,000 peacekeeping force.

2000 -- RUF kidnap 500 peacekeepers. UK sends in paratroopers. Sankoh detained. U.N. imposes global embargo on diamond exports from Sierra Leone.

1992 -- After 14 years of civil war, elections held and MPLA win, but a presidential runoff is required as the vote is closely split between MPLA's Eduardo do Santos and UNITA's Jonas Savimbi. Election result rejected by UNITA before second election, and civil war continues.

1993 -- U.N. reports up to 1,000 people dying every day, more than in any other conflict in the world at the time.

1994 -- Lusaka Protocol is signed, but fighting continues. Joint Commission set up comprising the U.N., government and UNITA, with U.S., Portugal and Russia as observers.

1996 -- Fighting continues in diamond areas.

1997 -- Serious violations of the cease-fire, including attacks on civilians by both UNITA and the government. U.N. freezes UNITA bank accounts and closes their overseas offices.

1998 -- Fighting escalates. Both sides lay mines around their postions including diamond reserves. U.N. prohibits export of unofficial diamond exports.

1999 -- Diamonds worth $150 million produced in conflict areas and $468 million from non-conflict areas.

1997 -- Laurent Kabila wins power.

1998 -- Civil war revived by rebel movement backed by Rwanda and Uganda, which control diamond area.

1999 -- Official production of diamonds worth $396 million.

2000 -- Army claims Rwandan and Ugandan troops have "massacred" civilians around the diamond area in the east of the country.