More exploration permits are being issued to encourage expansion of the industry

Sierra Leone has worked hard to improve the image of its diamond mining industry in recent years. The global crackdown on conflict diamonds – gemstones that helped fuel various civil wars in Africa, from Sierra Leone down to Angola – forced Freetown to take a tough stance on issues like smuggling and corruption.

The authorities are still fighting against the illicit diamond trade, although significant progress has been made. The level of official diamond exports is rising sharply, boosting government finances and restoring credibility among international onlookers.

The Government Gold and Diamond Office (GGDO) originally came into existence in 1985 as part of Sierra Leone’s policy to rationalise the foreign exchange regime of the country. Its primary functions include the valuation of gold and diamonds and the collection of export charges, taxes and royalties on behalf of the state. This section of the mining ministry became extremely important after the UN Security Council passed a resolution in 2002 on the subject of conflict diamonds.

It now handles the certification of all diamonds exported legally from Sierra Leone.
It has been estimated that as much as 80 per cent of the country’s diamonds were being smuggled abroad for sale on the international market at one time. Tougher international regulations leading to tight controls on the origins of diamond exports has helped to reduce the level of smuggling substantially. The battle over conflict diamonds is being won.

‘Discouraging people from smuggling ’ Laurence Ndola Myers

Laurence Ndola Myers, GGDO General Manager, has an important responsibility to build on the progress that has already been achieved. He says one of the most important strategies has been the introduction of greater competition among exporters, raising prices for local diamond sellers, thereby encouraging them to pass through official channels.

“If the exporters who are here pay competitive prices, then there is no need for smuggling. This is one strategy the government has adopted. It has brought reputable and competitive buyers in who discourage people from smuggling. You can see that from the figures.”

The Government Office expects to see diamond exports increase further, to reach around £44 million by the end of this year. However, confronting smuggling gangs and vested interests has not been an easy task. The GGDO co-operates with the police and other authorities in tracing illicit diamonds with a reward offered for information leading to the apprehension of criminals, but Mr Myers says the diamond trade remains full of secrets. “The people that smuggle are the people that do everything under the table,” he says. Nonetheless, the fact is that the more the government exports through official lines, the fewer diamonds are sold illegally.

There are ambitious plans to expand the diamond mining industry in Sierra Leone with the issue of more exploration permits. It is seen as a major potential contributor to the national economy. The GGDO has increased its staff from five to 10 to prepare for the anticipated rise in exports and to send a clear message that it is serious about catching those who try and cheat the system.

The government is hoping to entice foreign mining firms and to nurture local talent with preferential investment terms. Mr Myers says the President is keen to give ordinary Sierra Leoneans a chance to enter the diamond sector
so that they do not get tempted by
smuggling. Locals can obtain exploration rights at a fraction of the cost of foreign companies, for example. “If you are Sierra Leonean, to obtain an export licence you pay £3,750; as a foreigner you pay £18,750.”