MINING

India's Gems and Jewellery Export Promotion Council has taken a stand with the international community to support the decision of the Kimberley Process Certification Scheme to temporarily suspend Central African Republic (CAR) from the global body, after a rebel coalition has seized power
Diamantaires in the reigning centres of Mumbai and Surat have been advised against importing rough diamonds from CAR. Data shows that some 323,000 carat of diamonds worth $60 million were exported from CAR in 2011. CAR is pegged at 14th among the world's leading producers of rough diamonds by volume.
Seven weeks ago Seleka rebels ousted Central African Republic's president and are reportedly solidifying their control over the country's lucrative diamond industry.
The President of the World Diamond Council Eli Izhakoff has also supported the decision issued on May 23 by Ambassador Welile Nhlapo, Chair of the Kimberley Process, to temporarily suspend CAR from the Kimberley Process (KP) Certification Scheme.
In a statement, Izhakoff said: ``This is a tough but appropriate measure that will defend both the integrity of the diamond pipeline and, also, ultimately the well being of the people of the Central African Republic...until further notice from the KP, no rough diamonds from the CAR (will be) handled and or traded.''
The decision and the situation in the CAR will be reviewed by the KP Working Group on Monitoring, in consultation with other working bodies, at the KP's Intersessional Meeting that will take place in Kimberley South Africa between June 4-7.
Officials of the Gems and Jewellery Export Promotion Council in Mumbai said the resolution to suspend CAR was moved by the current KP chair, and that 80 member countries, including India, were informed about the decision this week.
The Kimberley Process system for certifying the origin of diamonds is meant to inform customers about where the stones originated. Diamonds are exported with certificates saying they are conflict free, with most of the diamonds finding their way to the major diamond cutting hubs of Belgium, Israel and India. 
India imports around $15 billion worth of rough diamonds per annum. While 70% of the rough diamonds are sold by the world's top diamond mining companies like De Beers, Alrosa, Rio Tinto and BHP, the rest enters the country through Zimbabwe, South Africa, Central African Republic (CAR) and Belgium, among other nations.
Mining disruptions in South Africa have already led to a huge scarcity of rough diamonds in India, which has brought on a rise of 10% in prices in the last two months. 
While mining at De Beer's Venetia mine in South Africa, the biggest in the country, saw disruptions early this year, owing to heavy rains followed by devastating floods at the mine site, mining has been resumed moderately.
At 6.4 million carats, De Beers, which controls about 40% of global rough diamond supplies, recorded a 3% jump in rough diamond production in the quarter ended March. Varda Shine, executive vice president of De Beers Global Sightholder Sales, told reporters in Mumbai recently that the company's rough diamond output would stand at last year's levels.
After a staggering 57% rise in import of rough diamonds in December 2012, imports to India fell sharply in the first three months of 2013. However, in April, imports rose 18.48%, as Indian jewellers rushed to bridge the deficit created by robust demand.