By The Respondents Reporter
Tanzania is urging players in its diamond industry to ensure the country’s stones are valued not only for their quality but also for how they are mined, processed and traded as global markets place greater emphasis on responsible sourcing.
Mining Commissioner Dr AbdulRahman Mwanga said on Thursday that buyers and investors increasingly want assurances that diamonds are produced in compliance with environmental, labour, human rights and business integrity standards.
“We want diamonds produced in Tanzania to have value in the stone itself, but also in the way they are produced and sold,” Dr Mwanga said while opening a stakeholder awareness meeting on the Sustainable Diamond Standard (SDS) in Shinyanga.
The meeting was organised by the African Diamond Producers Association (ADPA) to discuss the standard and its implications for Tanzania’s diamond value chain.
Dr Mwanga said diamond quality and price alone were no longer sufficient to maintain access to international markets, as buyers were increasingly examining working conditions, community interests, environmental practices and corporate governance.
The SDS is intended to provide a common framework for responsible mining and trading of rough diamonds while improving environmental, social and governance practices across the industry.
“We should not wait for international market demands to force us to change. We should prepare early and build systems that will enable Tanzanian diamonds to remain trusted and competitive in global markets,” he said.
Tanzania already has laws governing responsible mineral production, with Dr Mwanga saying the Mining Act and its regulations cover exploration, mining, processing and trading while addressing environmental protection, occupational health and safety, local content and community obligations.
He said the SDS should therefore complement rather than replace Tanzania’s existing legal framework.
“SDS should not be seen as an alternative to Tanzania’s Mining Act, but as an opportunity to strengthen and demonstrate to international markets the implementation of responsible practices required across the diamond value chain,” Dr Mwanga said.
The government will conduct a detailed assessment comparing the SDS with the Mining Act to identify areas already covered by existing laws, areas requiring improvement and those needing additional guidance, he said.
The assessment is intended to ensure that implementation of the standard is practical and delivers benefits to Tanzania.
Dr Mwanga also stressed the importance of transparency, integrity and traceability in protecting Tanzania’s reputation as a diamond producer.
He said existing systems governing the production, storage, valuation and trading of minerals, together with the requirements of the Kimberley Process, provide a foundation for legitimate diamond trade.
Under the SDS, participating companies and traders will undergo self-assessment, independent verification and certification.
Those that meet the requirements will be allowed to use the Sustainable Diamond Logo on their products, a move intended to give international buyers greater confidence in the origin and production practices behind the stones.
The standard covers participants across the diamond value chain, including large, medium and small-scale miners as well as traders.
Dr Mwanga said implementation should also support employment and skills development for Tanzanians, technology transfer, greater participation by local businesses and development of communities around mining operations.
He called for small-scale miners and traders to be educated about the requirements so they can participate more effectively in the formal diamond market.
ADPA was established on November 4, 2006, through the Luanda Declaration and is headquartered in Luanda, Angola. It has 15 full members, including Tanzania, and seven observer members.
The Shinyanga meeting brought together stakeholders from across the diamond value chain to discuss the purpose, scope, structure and requirements of the SDS alongside Tanzania’s existing mining laws.