DiamondBuzz
African group identifies countries blocking new conflict-diamond definition
Six KP member nations block efforts to modernise the conflict-diamond definition, deepening global tensions over long-overdue reforms to the Kimberley Process.
The ongoing debate over how to redefine conflict diamonds intensified last week when the African Diamond Producers Association (ADPA) publicly identified the six Kimberley Process (KP) members that vetoed a proposed expansion of the current definition. The move followed a crucial vote at the KP plenary, where unanimous agreement is required for any change to be adopted.
According to the ADPA, the countries that opposed the revised wording were Australia, Canada, the European Union, Switzerland, Ukraine and the United Kingdom. This opposition came despite broad support from the Kimberley Process Ad Hoc Committee on Review and Reform (AHCRR), including major diamond-producing nations that have long advocated for a more contemporary and inclusive description of conflict diamonds.
The existing definition, enshrined in United Nations General Assembly Resolution 55/56, limits conflict diamonds to rough diamonds used by rebel movements or their allies to finance conflicts aimed at undermining legitimate governments. While effective two decades ago, this framing no longer captures the diverse and evolving risks associated with modern conflict financing.
DiamondBuzz
Lesotho’s Kao Diamond Mine To Halt Operations Amid Industry Slump
The Mine’s Operator, Storm Mountain, Cited A Severe Financial Crisis Driven By A Prolonged Drop In Global Rough-diamond Prices, Rising Middle East Conflict
Lesotho’s largest diamond mine, Kao, will cease operations on June 30 and transition to care and maintenance. The mine’s operator, Storm Mountain, cited a severe financial crisis driven by a prolonged drop in global rough-diamond prices, rising Middle East conflict-related fuel costs, and stiff competition from lab-grown diamonds.
Despite a warning last October that the mine required $13 million in fresh capital to survive, the necessary investment did not materialise. According to CEO Neo Hoala, the steep market decline made continued operations unsustainable. The shutdown will impact roughly 750 workers.
The mine’s financial downturn is stark: in 2024, Storm Mountain sold 250,000 carats for $50 million—a massive drop from its $105 million revenue in 2022. Kao’s suspension reflects a broader crisis in the diamond sector, following recent insolvencies and closures at Canada’s Ekati mine and South Africa’s Ekapa and Finsch mines.
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