The restructured market opens up opportunities in large-scale production.

The only commercial diamond producer in the DRC is the Bakwanga Mining Company (MIBA), a joint venture operation between Belgian company Sibeka and the DRC government, which holds an 80% stake. De Beers, a shareholder in Sibeka, markets around 30% of the country’s diamonds.

For years, MIBA only exploited 40km3 of its total 78,000km3 concessions. Exploitation has recently spread to 940km3 and the company has decided to release some portion of its remaining concessions to private financial and technical partners, including DeBeers, Alrosa, DHP and DGI/Emaxon in order to boost the economy.

MIBA was at one time world’s biggest diamond manufacturer, producing 18 million carats. By 1995, output had dropped to around 4.3 million carats. Production is picking up once again, and the break-even point of eight million carats should be exceeded by the end of this year.

Although the DRC is Africa’s largest diamond producer, most of the country’s diamonds are produced by the informal sector. “We deplore this type of small-scale production because of its lack of organization and the fact that it involves children,” says Gustave Luabeya, CEO of MIBA. It is estimated that the treasury loses about $450m a year due to smuggling.

To counteract the illegal trade, all diamonds exported by the DRC as of April 2002 have to be submitted to certification by the Centre for Evaluation, Expert Analysis and Certification of Precious Minerals (CEEC).

The DRC is also a member of the Kimberley Certification Process. “The Kimberley certificate is a substantial contribution in securing commercialization. These certificates have brought around $700m - $800m to the state. In addition, the process contributes to our internal transparency,” says Mr. Luabeya. “If we are to obtain international credibility, a legally secure framework is a necessity.”