de beers diamond cartel:
Namibia was illegally occupied by apartheid South Africa throughout the 1970s and 1980s. The UN passed a special decree forbidding mining companies from extracting minerals unless they had specific permission. De Beers and its sister company, Anglo-American, defied this decree and made secret arrangements to overmine the diamonds ahead of Namibian independence. As the technical assistant to the mine manager, Gordon Brown felt it was his simple duty to blow the whistle and came forward to give hard evidence of this illegal behaviour to a judicial enquiry. Since then he has been targeted by members of De Beers' security and their colleagues in the Police Diamond Branch.
(...) 10 things we know about De Beers diamond cartel because of Gordon Brown
1. The Anglo-American corporation obtained control of the Namibian diamond deposit in highly dubious circumstances during and after World War I and ran it as a monopoly business even though the League of Nations/United Nations mandate expressly outlawed all monopolies.
2. De Beers took control of a diamond deposit the size of Wales in return for an annual ground remit of £130 per annum. This rent never changed between 1920 and 1970.
3. The Namibian Police Diamond and Gold branch was a De Beers front - with offices provided and furnished by the cartel.
4. The South West Africa Diamond Board was a joke watchdog with its offices situated in and paid for by De Beers.
5. The Diamond Board secretary, Stanley Jackson, was seconded to the post by his employers, De Beers and all controls over the movement of diamonds in and out of Namibia were in the hands of cartel officials.
6. The De Beers group opposed all cutting of diamonds in Namibia and structured itself to avoid tax and move minerals though a worldwide web of companies each of which added costs and subtracted profits in order to maximise De Beers returns abroad. This scam is known as transfer pricing.
7. The company had so effectively colonised the government mining department supposedly responsible for regulating it, that the top government mining officials didn't even know the name, never mind the detailed terms of the law they were supposed to enforce.
8. This put De Beers in prime position to abuse the mine, overexploit the diamonds by grade and stone size for many years while the cartel's friends in politics in Britain, America and South Africa delayed independence for Africa's last colony.
9. In this way De Beers shortened the life of the mine and took away an extra billion pounds worth of diamonds ahead of Namibian independence. With working costs at 25% of revenue this means that the company plundered £750 million in excess profit and unjust enrichment from a poor country heading for independence.
10. De Beers diamonds will be remembered as tokens of some people's wealth and other people's poverty because conditions at the world's richest mine were ferociously exploitative with black miners condemned to inhuman conditions, the shocking details of which Gordon Brown, among others, exposed.
collected snippets of immediate importance...
Showing posts with label diamonds. Show all posts
Showing posts with label diamonds. Show all posts
Thursday, June 12, 2008
Thursday, May 17, 2007
the carving up of the congo [great as a detalied case-study of the seediness of carving up]:Most people who became aware of the 2nd Congo War (1998-2003) did so because of the violence unleased in the (then) Ituri District, which was created in June of 1999 by General James Kazini of the Ugandan People’s Defense Force (UPDF). After the Lusaka Accords were signed and the UPDF officially pulled out of the country, the neighboring countries of Uganda and Rwanda aggravated and exploited ethnic differences to create numerous militias that went to war over the vast gold tracts in Ituri. The illegal sale of this gold in neighboring countries served to fund the war by purchasing arms, military uniforms, and other supplies. Incomprehensable acts of violence and rape occurred, and child soldiers were the norm. Today, with the aid of U.N. forces, Ituri has found a relative peace.
(...) Ituri is unique compared to the Kivu provinces to the south because throughout the 1st Congo War (1996-1997) to the present day, war over minerals has always been about gold and timber. The rest of Northeastern Congo went through several distict phases where one particular commodity was more sought after than another. When the 2nd Congo War broke out, diamonds were the most coveted mineral until mid-2000. In 2000, the coltan (columbium-tantalite) boom occurred due to increased military-industrial spending, and the arrival of popular electronics equipment (the cell phone boom, Sony Playstation, etc.), which drastically increased market demand for coltan. What started off in 1999 as a $20 (U.S.) per pound commodity rose to $380 (U.S.) per pound by December of 2000. With 80% of the world’s coltan reserves, fierce fighting for the mining sites claimed countless victims [1]. The world market reserves quickly became so saturated with smuggled coltan that the price plummeted back down by the end of 2001. The smugglers in the Kivus then focused on the highest grade ores that were found primarily in Walikale Territory.
(...) Throughout the wars and for years before that, multinational corporations sought to exploit the same gold mining areas in Ituri that the militias did.
(...)
(...) Ituri is unique compared to the Kivu provinces to the south because throughout the 1st Congo War (1996-1997) to the present day, war over minerals has always been about gold and timber. The rest of Northeastern Congo went through several distict phases where one particular commodity was more sought after than another. When the 2nd Congo War broke out, diamonds were the most coveted mineral until mid-2000. In 2000, the coltan (columbium-tantalite) boom occurred due to increased military-industrial spending, and the arrival of popular electronics equipment (the cell phone boom, Sony Playstation, etc.), which drastically increased market demand for coltan. What started off in 1999 as a $20 (U.S.) per pound commodity rose to $380 (U.S.) per pound by December of 2000. With 80% of the world’s coltan reserves, fierce fighting for the mining sites claimed countless victims [1]. The world market reserves quickly became so saturated with smuggled coltan that the price plummeted back down by the end of 2001. The smugglers in the Kivus then focused on the highest grade ores that were found primarily in Walikale Territory.
(...) Throughout the wars and for years before that, multinational corporations sought to exploit the same gold mining areas in Ituri that the militias did.
(...)
Labels:
coltan,
congo,
diamonds,
gold,
lusaka accords,
peacekeepers,
TNCs,
uganda
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