Central African Republic diamond houses obliged to export $3m per quarter

The Special Counselor for Diamonds of the Central African Republic issued a statement this week announcing a reform of the country’s diamond mining sector.

In the document, the Counselor states that following the adoption of Presidential Decree No. 19.282 on September 30, 2019, all existing diamond buying houses have an obligation to export at least $3 million per quarter. A failure to do so could result in the withdrawal of their license.

These houses are also being encouraged to demonstrate their capability to formalize exports and to withdraw from any engagement in the informal circuit.

“After a trial period which will end on 31 December 2019, the buying houses that have passed the conditions will enter into a contract with the CAR Government which will stipulate the due diligence sourcing protocols,” the release reads.

The official dossier states that the reason behind such measures is the dire need to bring diamond production back to the formal market.

According to the document, in 2018, revenue from diamond production reached $2.3 million while in 2012 it reached $62 million. A 97% drop in exports explains the dramatic change.

“Going forward, the CAR’s Government will stand for a bold new and drastic approach where full transparency and proper due diligence protocols, traceability of individual parcel and OECD Due Diligence Guidance will be crucial,” the brief reads.