2013 cote d'ivoire review mission report - …...3 | page i. introduction! 1....

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COTE D’IVOIRE

KIMBERLEY PROCESS -‐ REVIEW MISSION

30 September-‐4 October 2013

REPORT

Review Mission Team 1. DRC: Mr Maurice Miema (Team Leader)

2. European Union: Mr Joris Heeren and Mr Winfried Ottoy

3. Guinea: Mr Alkaly Yamoussa Soumah

4. Liberia: Mr Stephen Dorbor

5. Sierra Leone: Mr Samuel Koroma

6. South Africa: Ms Jacobeth Moloisane

7. USA: Ms Eileen Kane

8. Civil Society Coalition: Mr Kabinet Cissé

9. DDI: Ms Dorothée Gizenga

10. WDC: Mark Van Bockstael

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C O N T E N T S

Page No.

I. Introduction……………………………………………………………………………………………………………………3

II. Context…………………………………………………………. .................................................................... 3 III. Methodology ………………………………………………………………………………………………………………...6

IV. Institutional Framework…………………………………………………………………………………….…………..7

V. Legal Framework………………………………………………………………………………………………………….…9 VI. Import / Export Procedures……………………………………………….………………………………………...11

VII. Internal Controls………………………………………………………………………………………………………..…15

VIII. Statistics……………………………………………………………………………………………………………………….21

IX. Conclusions…………………………………………………………………….…………………………………………….25

X. Recommendations…………………………………………………………….………………………………………….25

Annex 1: Programme of the Review Mission……………………………….…………. ........................... 27

Annex 2: Maps of Productive Zones…………………………………………………………………………………...30

Annex 3: Relevant Pictures………………………………………………………………………………………………...31

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I. INTRODUCTION

1. The Review Mission (RM) to Côte d’Ivoire took place from 30 September to 4 October 2013. The RM team was led by Mr Maurice Miema from the the Democratic Republic of Congo (DRC). The European Union (EU) was represented by Mr Joris Heeren and Mr Winfried Ottoy, Guinea was represented by Mr. Stephen Dorbor, Deputy-‐Minister of Lands, Mines and Energy, Sierra Leone was represented by Mr. Samuel Koroma, South Africa was represented by Ms. Jacobeth Moloisane, the United States of America (USA) were represented by Ms Eileen Kane, the Civil Society Coalition (CSC) was represented by Mr. Kabinet Cissé and the Diamond Development Initiative (DDI) was represented by Ms. Dorothée Gizenga. Mr. Mark Van Bockstael of the World Diamond Council was unable to join the team, but has contributed to this report.

2. The RM team would like to express its sincere gratitude and appreciation to the

Government of Côte d’Ivoire and its officials from the KP Permanent Secretariat, the Customs Department, the Mining Development Company (SODEMI) and other institutions for their cooperation in making this Mission a success. We sincerely thank the people of Cote d’Ivoire in mining communities and villages for their warm welcome of the RM team.

3. The RM team would also like to acknowledge the contributions made by other

stakeholders such as the Friends of Côte d’Ivoire (FOCDI) group, the Regional Cooperation team for the Mano River region, The United Nations Mission in Côte d’Ivoire for providing logistical support, and other individuals for their time and active participation in the discussions during the visit.

4. Furthermore, the team acknowledges the Technical Assistance that has been provided

to Côte d’Ivoire by the African Diamond Producers’ Association (ADPA), Belgium, the European Commission, South Africa and USAID.

II. CONTEXT

5. Côte d’Ivoire has a long tradition of artisanal diamond production in the northern areas of Bobi-‐Séguéla and Tortiya, and was one of the founding Participants of the Kimberley Process Certification Scheme (KPCS). From 1996 to 2001 the country was a relatively large producer of rough diamonds, with an annual production varying between 275,000 and 400,000 carats. However, hostilities broke out in the country on 18 September 2002, just before the inception of the KPCS, which resulted in a de facto partitioning of the country, with a zone of confidence dividing the north and south. Rebel groups (Forces Nouvelles) took control of the diamond-‐producing areas in Séguéla and Tortiya.

6. The response of the Ivorian KP authorities was to suspend the buying authorizations

and expertise of rough diamond, and as a consequence prohibit the export of rough diamonds from Ivorian territory through the issuance of Ministerial Decree no. 0070/ MME /DM of 19 November 2002. Thus, although Côte d’Ivoire has remained a KP Participant, it has never issued a KP Certificate for the legitimate export of any Ivorian

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production and therefore all KP Participants have been prohibited from importing Ivorian diamonds.

7. Following the hostilities, there was a period of uncertainty throughout 2003 as to

whether diamond production continued in the North. The Working Group on Monitoring (WGM) began monitoring developments from January 2004. The Ivorian authorities in October 2004 formally notified the KP that they believed production was happening. By the end of the year, there was considerable evidence of the illicit mining activities in the north.

8. The KP was also active in engaging the Ivorian authorities concerning the suspected

production of rough diamonds in rebel-‐held territory north of the “zone of confidence”. In April 2005, a previous Chair of the KP went to Côte d’Ivoire as special envoy of the then Chair, the Russian Federation. He emphasized that the Kimberley Process would address this issue in a manner designed to avoid creating any bilateral tensions between Côte d’Ivoire and its neighbours and in a manner that respected the primacy of international efforts to advance peace in Côte d’Ivoire and in the sub-‐region.

9. In June 2005, the KP Chair wrote formally to the United Nations Group of Experts

(UN/GoE) on Côte d’Ivoire and the Chair of the Sanctions Committee on Côte d’Ivoire, alerting the international community to the issue. The KP Chair expressed concern that the possible unauthorized exploitation of rough diamonds in the area north of the zone of confidence in the Côte d’Ivoire could pose a threat to the integrity of the KPCS in the sub-‐region, particularly in view of the negative role that conflict diamonds have played in West Africa in the past and the importance of comprehensive implementation of the KPCS for conflict prevention.

10. The KP Chair sent the report of the Special Envoy and an information note on the

situation in Côte d’Ivoire prepared with the assistance of the WGM providing specific information at the disposal of the Kimberley Process. The KP Chair expressed the view that it would be useful for the Kimberley Process to collaborate with the United Nations in possible measures to address the situation and improve KPCS implementation in the sub-‐region, and indicated that the Kimberley Process was ready to cooperate closely with the Panel of Experts and other UN bodies.

11. The Côte d’Ivoire situation was discussed at length during the November 2005 Moscow

Plenary which noted “that the ongoing production of rough diamonds in Northern Côte d’Ivoire and the possible introduction of such illicit diamonds into the legitimate diamond trade threaten the integrity and credibility of the Kimberley Process Certification Scheme.” After a thorough discussion on the basis of a proposal by the WGM, Plenary adopted a Resolution1 outlining 9 measures. Participants and Observers were urged to “undertake all possible efforts … to ensure that illicit Côte d’Ivoire diamonds cannot be introduced into the legitimate trade”. To this end, the Resolution called for regional cooperation in countering this threat and for close cooperation with UN bodies to stop the spread of conflict diamonds.

1 Resolution adopted by the Kimberley Process Plenary Meeting, Moscow, 15-‐17 November 2005, on the subject of illicit diamond production in Côte d’Ivoire’, available at http://www.kimberleyprocess.com.

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12. Shortly after the Moscow Plenary, in December 2005, the UN Security Council adopted Resolution 1643 (2005). This Resolution imposed sanctions on all Ivorian diamond exports, thus extending the KP’s existing prohibition on imports from Côte d’Ivoire to bind all UN Member States. This Resolution included the suggestion that the KP should offer to cooperate with the UN Group of Experts in carrying out a detailed assessment of the volume of rough diamond production and illegal exports from Côte d’Ivoire. As mandated by paragraphs 1 and 4 of the Moscow Resolution, and paragraph 12 of UNSCR 1643 (2005), KP experts participated in a joint field trip to Côte d’Ivoire with the UN Group of Experts in April 2006 to assess the extent of conflict diamond production in the northern part of the country under rebel control.

13. Since then, the KP has further strengthened its actions to enforce the rough diamond

trade ban through the so-‐called Brussels’ Initiative on diamonds from Côte d’Ivoire adopted on 8 November 2007 (available at http://www.kimberleyprocess.com), while the UN Security Council has continued to renew the ban, most recently in April 2013 with the adoption of Resolution 2101 (S/RES/2101). Resolution 2101 urges the Ivorian authorities to enforce KPCS regulations in Côte d’Ivoire and work with the KP to conduct an assessment of the country’s internal control systems, diamond production and production capacity. Effectively, achieving KPCS implementation was made a condition for the eventual lifting of the UN embargo. Article 6 of UNSC Resolution 2101 (2013) extends the embargo to April 2014.

14. In May 2012, the Ivorian Government established a KP Permanent Secretariat to help

accelerating efforts towards ensuring compliance with KP minimum standards. The KP Permanent Secretariat is an inter-‐ministerial set-‐up, consisting of staff members from the Ministry of Industry and Mines, as well as the Ministries of Finance, the Interior and Foreign Affairs. The organization has been headed by Mme Fatimata Thès, KP Permanent Secretary. Over the past nine months, the KP Permanent Secretariat has also benefited from the assistance of a Technical Adviser, Terah U. DeJong, who has been operating under contracts with USAID and the EU Delegation in Abidjan.

15. Since its establishment, the KP Permanent Secretariat has managed to help putting in

place a number of significant actions towards achieving KPCS implementation: (i) Adoption of a detailed Work Plan based on the KP Review Visit checklist; (ii) Establishment of five ad hoc Working Groups for determining procedures related to registration and licencing, valuation, export, certification and data management; (iii) A review of the national Mining Code; (iv) Adoption of a KP Procedural Guide; (v) A launch of the Ivorian diamond traceability system; (vi) A partnership between artisanal mining cooperatives and the Mining Development Company (SODEMI); and (vii) Distribution of over 500 worker cards and the completion of seven data bases.

16. At the recent KP Inter-‐sessional meeting in Kimberley, South Africa (4-‐7 June 2013), the

Ivorian KP authorities made a presentation on the main steps taken and actions planned in order to ensure compliance with KPCS minimum standards. WGM members acknowledged these steps taken and actions planned by Côte d’Ivoire and it was agreed that upon presentation of further progress in July 2013, the Ivorian KP authorities and

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the WGM Chair would start planning for a possible Review Mission. In early July, the Ivorian KP authorities submitted an updated version of their detailed Work Plan showing that up to 75% of the actions planned on the basis of the KP Review Visit checklist had been implemented. At a WGM teleconference taking place on 23 July, it was agreed to carry out a Review Mission to Côte d’Ivoire from 30 September to 4 October 2013.

17. The basic assumption for carrying out a Review Mission to Côte d’Ivoire has always been

the fact that it is impossible for the country to fulfill all KP minimum requirements and for the RM team to check full compliance while the country is still under UN embargo, since no exports are allowed and therefore the full legal chain of custody cannot yet be implemented. The RM team would assess Côte d’Ivoire’s chain of custody up to the point of first sale (digger-‐miner-‐collector) and would look into the framework and procedures established for implementation of the remaining links up to the point of exports (buying houses-‐mining permits for certain categories of actor-‐diamond exports).

III. METHODOLOGY

18. The programme for the Review Mission (see Annex 1) as put together by the Ivorian KP Permanent Secretariat consisted of three parts: (i) Two days of meetings and working sessions with relevant Government officials and other stakeholders in Abidjan (Monday 30 September-‐Tuesday 1 October); (ii) Two days of field visits to Séguéla, including meetings with regional authorities, miners’ cooperatives and local communities (Wednesday-‐Thursday 2-‐3 October); and (iii) One final day of debriefings and an exit meeting in Abidjan (Friday 4 October).

19. The programme had been subject of a discussion with the RM team through a

conference call on 11 September 2013. Based on intra-‐team consultations, the following additional elements had been suggested to the Ivorian KP authorities for incorporation in the programme: (i) A field visit to the diamond mining area around Tortiya; (ii) A visit to a land border customs post (Sierra Leone, Guinea or Mali); and (iii) Meeting with Ivorian civil society representatives.

20. The RM team had taken note of the explanation given by the Ivorian KP Permanent

Secretariat that a field visit to Tortiya is logistically very difficult to organize and may not be worth the effort as the level of diamond mining activities is very low (only 40-‐50 diamond miners left). The team has also understood that it is equally difficult, partly for security reasons, to visit any key land border customs post. However, team is thankful to the Ivorian KP authorities for having created space in both the Abidjan and Séguéla legs of the programme for meetings with representatives from the Tortiya diamond mining community, the customs authorities and local civil society organisations.

21. During the mission, the RM Team met with key Government officials from the KP

Permanent Secretariat and Customs Directorates as well as representatives from the Mining Development Company (SODEMI) and the National Council of the Extractive Industries Transparency Initiative (EITI). The team also met with representatives from

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local authorities, the Departmental Mining Directorate, village elders, artisanal mining cooperatives and diamond collectors in the Séguéla area.

22. The Review Mission started in Abidjan with courtesy visits to both the Prime-‐Minister

and the Minister of Industry and Mines, who in their welcome remarks emphasised the political, economic and social importance for Côte d’Ivoire of achieving KPCS implementation. The courtesy visits were followed by working sessions on the legal and institutional framework, and the internal control system with the KP Permanent Secretariat, the Customs Department and SODEMI. The second leg of the programme consisted of a field visit to the Séguéla area, including visits to the diamond mining villages of Bobi, Duala and Diarabana.

23. The mission was wrapped up by an exit meeting with the Ivorian KP Permanent

Secretariat and a debriefing of the Minister of Industry and Mines. At the exit meeting it was agreed that Côte d’Ivoire would supply whatever documentation or additional information was needed. It was recognized that such information would be essential to make the report as comprehensive as possible (see also Annex 2, List of Documents).

IV. INSTITUTIONAL FRAMEWORK

24. The Ivorian KP Permanent Secretariat as set up by Ministerial Decree in May 2012 is the entity charged with coordinating and monitoring KPCS implementation. The Secretariat is presided over by the KP Permanent Secretary, who is appointed by the Minister of Industry and Mines. Members of the Secretariat include representatives from the following Government agencies: (i) General Directorate of Mines and Geology; (ii) Financial Information-‐Sharing Clearing House (CENTIF); (iii) Customs Directorate of Regulations and Litigations; (iv) Customs Airport Directorate; (v) Ministry of Interior’s General Directorate of Territorial Administration; (vi) Ministry of Foreign Affairs; and (vii) National Mining Company (SODEMI).

25. The KP Permanent Secretariat meets at least once a month, in accordance with its by-‐

laws. Members are chosen to act as focal points for key areas of KPCS implementation, including internal controls, certification, statistical data collection and processing, relations with civil society and external communications. The Secretariat also has two permanent staff members, namely a technical and an administrative assistant.

26. The Ivorian Customs Code of 1964 establishes the General Customs Directorate as the

exporting authority. Insofar as KPCS implementation is concerned, the KP Procedural Guide of 2013 (Section 2.2.1.3 – see also under chapter V. Legal Framework) states specifically what services of the Customs Directorate are responsible for signing KP Certificates on behalf of the exporting authority. Staff of the Customs Directorate has participated in a KP awareness workshop organized by the Secretariat in March 2013.

27. The national data management service in the mining administration (SEEPMP) is the

authority that assigns unique IDs to mining licensees, mining workers and diamond collectors, and would be able to also do so for licensed buying houses for their sales

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slips. SEEPMP is authorised to inspect all sales slips of buying houses since the last export, verify their authenticity and compare recorded sales with a physical inventory declaration and inventory check. In accordance with KPCS requirements, the service would also submit all quarterly and bi-‐annual data to the KP Statistics web portal.

28. One particular feature of Côte d’Ivoire’s institutional framework is the role of the

National Mining Company (SODEMI), a state-‐owned enterprise that manages a large mining concession in the Séguéla area. SODEMI has been granted three industrial research permits and exploration licenses, but has not yet begun an exploration programme. The Company has signed agreements with a number of artisanal diamond mining cooperatives, allowing them to mine within designated zones. Furthermore, SODEMI provides technical assistance to these cooperatives and collaborates with the military police on security matters.

Remarks

29. In assessing the coherence of the institutional framework, the Review Mission feels that

the authority of the KP Permanent Secretariat needs to be better defined and identified, its structure reinforced and ideally the entire Secretariat attached directly to the Minister of Industry and Mines. It would also be important to strengthen the Ministry’s Directorate for Artisanal Mining in order to better support and monitor artisanal mining activities outside the SODEMI concession areas. Furthermore, customs staff at all airports and land borders must receive training on KP rules and procedures, in particular those customs officials at the airports and land border posts closest to the diamond mining areas.

30. The Permanent National Secretariat does not have sufficient staff for technical

inspection on the ground; as such field work is a concern. Also, according to the reporting process in place, the field workers might be more accountable to the Mines Directorate, rather to the KP Permanent Secretariat. The Secretariat needs a clear-‐cut, permanent channel of collaboration with the inspection body on the ground. Additional staff for administrative duties will also be needed.

31. The Team was advised that the KP Permanent Secretariat will be composed of members

coming from different ministries and agencies. These members have been chosen because their technical job tasks relate to KP procedures, but they will remain staff of their respective institutions. It would be important for the KP Secretariat to assure effective coordination of all KP related activities, while its members report to their individual chain of command. The attendance of monthly meetings by members may not adequately sustain the coordination.

32. The Review Mission team took opportunity to visit the KP Permanent Secretariat office.

The review Mission team recommends that more security be enhanced at the main entrance and that security cameras be installed in the sensitive parts of the office. It will be necessary to provide sufficient furniture as work commences. The sorting and valuation room needs to comply with technical requirements for sufficient daylight and appropriate furniture.

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V. LEGAL FRAMEWORK

33. Côte d’Ivoire’s legal framework for KPCS implementation is embedded in the national Mining Code of 1995 and its Application Decree of 1996, as well as in the 2003 Presidential Decree on KP Requirements, the Presidential Decree on KP Certificate fees making reference to a law passed in 2013, the 2013 Customs Circular and a Decision of the Directorate-‐General of Mines and Geology (DGMG). At the time of the Review Mission, the Mining Code was under revision and the Ivorian KP authorities had indicated that they were exploring the possibility of transferring certain key elements from Decrees directly into the Code. The revised Mining Code would for example include new provisions on enforcement, including a number of new definitions of transgressions and their penalties related to KP internal controls.

34. In May 2013, the Ivorian KP Permanent Secretariat adopted a so-‐called KP Procedural

Guide, which defines all KP-‐related procedures in conformity with existing laws and regulations. This Guide was updated in June 2013 to reflect regulatory changes and may be further updated following adoption of the revised Mining Code. The Procedural Guide provides an overview of Côte d’Ivoire’s KP compliance system as regards production and sales, registration and licensing and traceability. It also explains the country’s procedures for import and export, data management and control.

35. In addition to what is mentioned above, some other key pieces of legislation regulating

the implementation of the KPCS in Côte d’Ivoire include:

• Ministerial Order 0019: Named “creating the Permanent Secretary of the Representation of the KP in Côte d’Ivoire”. This decree which came to effect on 18 May 2012 lays the foundation for the KP Focal Point in Côte d’Ivoire. The purpose of this office is to supervise all activities related to trade in diamond consistent with the KP minimum requirements. It further gives the composition of the office by 4 representatives from the Ministry of Mines and Industry, two representatives from the Ministry of Economy and Finances, and one representative from the Ministry of Foreign Affairs. It also makes mentions that the office will meet at least once on a quarterly basis.

• Ministerial Order n° 020: Named “nominating the Permanent Secretary, Focal Point for the KP in Côte d’Ivoire. This decree came into effect on 18 May 2013. It nominates Madame Thes Olemou Fatimata at the position of KP Permanent Secretary in Côte d’Ivoire and further the job description.

• Ministerial Order n° 074: Named” nominating the members of the Permanent Secretariat for the Representation of the KP in Côte d’Ivoire”. This decree came into effect on 26 September 2012 and it takes into account the representativeness of Ministries involved in the implementation of the KPCS.

• Ministerial Order n° 064: Named” authorizing the implementation of traceability of diamond production”. It came into effect on 30 may 2013 and empowers the Permanent Secretariat and the Directorate of Mines for the implementation of

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the KPCS in Côte d’Ivoire consistent with the Procedural Guide. It tasks the Mines Administration of the deliverance of the traceability documents.

• Ministerial Order n°065: Named” authorizing SODEMI to supervise artisanal mining inside its Research Permits. It came into effect on 30 May 2013 and gives the procedure to be followed by SODEMI in carrying out these activities, including the perception of 8% share on diamond mined inside its permits.

36. The fiscal licensing regime is summarized in Table 1 below. The licensing system itself is

an element of Internal Controls and as such is described in paragraph 72 of Section X of the report.

Table 1: Licensing Costs

License type Validity

(years) Cost (USD)

Rene wal Cost (USD)

Renewa l Period

Industrial Producers – Research Permit

3 $1,000 $2,00 0

Every 2 years

Industrial Exploitation permit (for Research Permit holders)

Life of the mine

$2,000 -‐ $4,000

Surface and Area Taxes for Industrial Exploitation Permit Holders

1 year $100/ square km

Same Annual

ASM authorizations 2 years $40 Same Bi-‐ annual

Surface and Area Taxes for ASM authorizations

1 year $6/ hectare

Same Annual

Mining worker card 1 year $10 Same Annual Collector’s Card 1 year $1,000 Same Annual Buying House Fees 1 year $25,00

0 Same Annual

Remarks 37. The Review Mission found that overall Côte d’Ivoire’s legal framework for KPCS

implementation is adequate; however, it would recommend the Ivorian Government to use the opportunity of the Mining Code revision process to capture a number of key elements from Presidential Decrees and Ministerial Decisions into the Mining Code to further strengthen the robustness of the legal framework. In addition, there is strong need to have clear provisions in the law explaining the procedure for seizures of smuggled or illicit diamonds. It will be advised that other enforcement services get involved, rather than leaving it to the sole Customs Office. Also, care should be taken to appoint appropriate staff dedicated to the monitoring of artisanal mining activities on the ground, as SODEMI is limited to activities taking place within its research permits.

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VI. IMPORT / EXPORT PROCEDURES

A. The Kimberley Process Certificate 38. The government of Cote D’Ivoire was assisted by the government of Belgium in

preparing and printing their KP Certificate during the year 2003. Since the implementation of the embargo, this certificate has not been used as such. In putting in place a new system, the KP Permanent Secretariat prepared a list of proposed changes to their current certificate, however it is to be noted that some of the above requirements below will be fulfilled once feedback on the validity has been received from WGDE.

39. The Review team was provided with the old version of the KP certificate and it was

observed that it still meets the KP minimum requirements as shown in the Checklist that follows.

Checklist of Minimum requirements for Certificates

Description Comments ! Bears the title “Kimberley Process

Certificate” and the following statement: “The rough diamonds in this shipment have been handled in accordance with the provisions of the Kimberley Process Certification Scheme for rough diamonds”

! Meets the minimum requirements

! Bears the title “Ministry of State, Ministry of Mines and Energy” as issuing authority

! Meet the minimum requirements

! Country of origin for shipment of parcels of unmixed

!

! Unique certificate number proceeded by “CI”

! Meets the minimum requirements

! Identification of exporter and importer* ! *These provisions cannot be verified pending the response of the WGDE on the approval and validity of the proposed changes to the KPC.

! Date of issuance and expiry* ! Number of parcels in shipment * ! Issuing authority * ! Carat weight/mass* ! Value in US$ * ! Relevant Harmonized Commodity* ! Description and coding System * ! Certificates issued in English or English

translation is Incorporated ! Seal and signatures of designated Export

Authority ! Tamper and forgery resistant security

features.

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40. The Mining Minister is mandated to issue the Buying House License which is valid for a period of one (1) year. This license entitles the holders to buy, sell and export rough diamonds; distinctive identities are also assigned to these licenses which are used for tracking and monitoring of sales transactions conducted within a specific period.

41. Control of KP Certificates: The KP Permanent Secretariat is responsible for the

safekeeping of the KP Certificates which are safely kept in a safe at the diamond office. It was however observed that the premises did not have security surveillance cameras and the review team was informed that installation will be done once the office starts operating.

B. Export and Import Procedures

Application for Export

42. Buying Houses with intent to export are required to first submit a written request to the Permanent Secretariat, this includes detailed information of the export which will be recorded on the KP Certificate once approved. Part of the information required to be attached for the export request is a declaration by the exporter that the diamonds intended for export are conflict free and relevant copies of sales slips since the last date of export. The cost of diamond valuation and certification is 100,000 CFA (USD$200).

43. Once the application has been received, the SEEPMP will process it before scheduling a

diamond valuation request. During this process the SEEPMP verifies the validity of the applicant’s license, verification that the importing country is a KPCS participant and how the diamonds were acquired by referring to copies of the sales slips provided. In a case whereby the SEEPMP might require additional information, the buying houses will be informed or may also conduct a physical verification inspection at the Buying Houses.

44. The SEEPMP will schedule a valuation once they have satisfied themselves that the

export request has complied with all the requirements in line with their processes and legislation.

Diamond Valuation 45. The Permanent Secretariat is mandated to organize and co-‐ordinate diamond valuations

which must always be conducted by at least two (2) Diamond Valuators who are chosen on a rotational basis. Diamond Valuators are both from the Mining Ministry and the Independent Valuators certified by the Permanent Secretariat.

46. Diamond Valuation must always be conducted in the presence of the representative of

Customs General Valuation Service, an Airport Customs Agent, representative of the KP Secretariat and two Diamond Valuators. Diamond Valuators are required to conduct their valuations independently and in should there be a difference in value the highest value will be to charge 3% export rate. An Independent Diamond Valuator will be appointed in a case whereby there’s a dispute in value and their valuation will be considered as final. The notion of what is called “independent valuator” is still

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questionable. For the KP Permanent Secretariat, the independent valuator is the one coming from the Customs Office, yet the Customs Office per se is represented as full member within the KP Permanent Secretary.

47. Upon completion of the valuation all representatives are required to endorse the

valuation report as confirmation and the KP certificate will then be prepared. The KP Certificate is co-‐signed by the KP Permanent Secretariat as the issuing authority and the Chief of Office of Origins and Customs who signs on behalf of the exporting authority and is valid for two (2) months from date of issue. At this stage, it should be made clear who else will be signatories of the KP certificate, in case the above would not be available.

48. The original KP Certificate is scanned for the KP Certificate database and a certified copy

is provided to the exporter. The Rough Diamonds together with the signed original KP Certificate have to be placed and sealed in a tamper resistant proof container and handed over to the registered exporter in the presence of all the representatives.

49. It is worth noting that so far no valuation room is organized and no diamond valuator is

available. The RM was informed that Belgium will provide assistance in setting up a valuation room with the necessary equipment and train six diamond valuators in November 2013, and one of these valuators would originate from the Customs Office.

Point of Export 50. Exports are the primary motive of transit of diamond in the country and the

international airport of Abidjan is the designated point of exit for all rough diamond approved for export. The exporter is required to be in a possession of an export authorization, a certified copy of the KP Certificate, diamond valuation report and a foreign currency exchange declaration from the General Directorate of the Treasury and Public Finance which will be presented to customs.

51. The above mentioned documents are used by the registered Customs Broker to prepare

an electronic customs declaration form for the purposes of clearing the shipment. The exporter is required to make payment of 3% export tax rate of the agreed valuation value determined by the diamond valuators.

52. During the official process of export the Customs agent is expected to verify all the

supporting documents authorizing the export including the KP Certificate, the seal on the tamper proof container and the official authorization to depart. Upon finalizing the process the exporter will be given an official endorsement to proceed with the export. The Customs Agent confirms the clearing and final approval of the export by sending a confirmation report to the KP Secretariat.

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Remarks

Valuation Room/s 53. During the visit at the Diamond office it was observed that the rooms intended to be

used as Valuation Rooms did not have the standard valuation tables, Lamps / Lights and diamond equipments. It is recommended for the KP Secretariat to visit and consult countries that have valuation offices and align their offices to suit their standard operating procedures.

54. It is the responsibility of the Ivorian Government to have valuators trained on an urgent

basis, as this constitutes an important technical requirement for an entity like the KP Permanent Secretariat.

Payment of the 3% Export Tax Rate

55. During the presentations it was noted that the 3% export rate will be payable at the

Airport upon declaration of the export by the exporter. The Review Team however makes a recommendation which was previously expressed verbally, that payment of such taxes is made once the valuation and tax amount are determined. We believe that this will enhance the monitoring and control of payment of Revenue and prevent any unforeseen circumstances of non-‐payment of due taxes.

The International Trade in Rough Diamonds: Incoming rough diamond shipments (Imports)

56. All rough diamond imports to be received will first be processed by the Customs Officials

at the Abidjan Airport. The Legislation allows only Diamond Buying Houses License Holders to import rough diamonds into the country.

57. At the point of declaration of rough import, the Customs Agent will be required to verify

that the import is received from a KP Participant, the validity of the KP Certificate, that the shipment seals have not been tampered with and further verifying that all the required shipping documents have been attached and correspond with the shipment.

58. The KP Secretariat will be informed of all imports received and a scanned copy of the

KPC will also be forwarded to this office. In a case of any discrepancies with the import the KP Secretariat and the exporting focal point will be informed and a report prepared. The importing agent will be liable for sending the import confirmation slips and or reports to the exporting countries as a confirmation that the shipment was received and released to the importer.

59. The Government has the KP Procedural Guide to refer to in a case of processing imports

should there be any declarations received.

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VII. INTERNAL CONTROLS

60. This section provides an overview of the internal controls system in Côte d’Ivoire. It profiles the key players involved, their roles and responsibilities in implementing these controls.

61. In the context of the UN embargo on Côte d’Ivoire diamonds, the country has designed a

system of internal controls that is intended to meet the minimum requirements as set in Section IV of the KPCS document, Section IV (a) requiring KP participants to “establish a system of internal controls designed to eliminate the presence of conflict diamonds from shipments of rough diamonds imported into and exported from its territory”.

62. As the country is unable to export diamonds however, parts of the internal control

system of Cote d’Ivoire have not yet been put into practice. As a result, the present review of the internal controls is an assessment of both processes and procedures presently implemented, and of those designed for future implementation.

63. At present the diamond production in Côte d’Ivoire is primarily artisanal and occurs in

two distinct geographic areas: Séguéla and Tortiya. The team visited the Séguéla mining area and was able to observe and verify first hand internal control procedures and processes put in place. Due to time constraints, a visit to Tortiya was not scheduled. Tortiya’s Departmental Director was however present at the visit in Séguéla, made a presentation to the team about the office operations and answered questions raised.

64. There is currently no industrial production of diamonds. However, a state diamond

company Société pour le Développement Minier de la Côte d‟Ivoire (SODEMI) holds 3 industrial research permits in the Séguéla region. Some of the artisanal mining occurs within SODEMI’s permit area as subsequently explained.

65. The system of internal controls involves and surrounds the following institutional and

non-‐institutional actors:

• The KP Secretariat • Office of Mines and Geology (Mines Administration) • Local Mines Administration Departments in Séguéla and Tortiya mining zones • Territorial Administration (Préfecture and Sous-‐Préfecture) • SODEMI • Artisanal and Small-‐scale Miners (with various organizational forms and licenses) • Collectors • Buying Houses (export entities)

66. The system has the following key elements in place: licensing of miners, registration of

miners, registration of buyers and sellers, monitoring, investigation, and traceability.

• Mining Licenses: There are three types of licenses, based on the scale and/or location of mining:

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a) Industrial mining operators who must initially acquire a research permit which has a validity of 3 years, and subsequently apply for an industrial exploitation permit for proven reserves upon presentation of a feasibility study. There are currently no valid industrial permits. The state enterprise SODEMI holds 3 industrial research permits.

b) Artisanal and small-‐scale mining (called authorizations); ASM authorizations can

be held by individuals, cooperatives or small and medium enterprises. Authorizations are for areas of between 25 and 100 hectares. There are currently no valid ASM permits. There are however 28 permits (19 in Tortiya and 9 in Séguéla) awaiting renewal after the lifting of the embargo. All paper work for these permits have been already submitted.

c) Artisanal and small-‐scale mining within the limits of an industrial permit. Such

authorizations are only issued to cooperative enterprises that enter into agreements with holders of industrial research or exploitation permits. Cooperative enterprises are a legal entity recognized under a 2010 law known as OHADA law, which harmonizes the business law among the 17 African countries, including Côte d’Ivoire. The permit holder identifies areas within which artisanal mining is authorized with a reserved right to change the limits and attributions of the areas. A revision to the Mining Code is being proposed to integrate this third category of licenses, currently covered by a Ministerial decree. As such, agreements between village cooperatives and SODEMI already exist and allow those cooperatives to mine. This was viewed as a pragmatic step towards formalization. Cooperative enterprises are subject to all registration requirements, including mining worker cards, but they do not pay the same fees as a holder of an ASM authorization. Terms of use vary depending on the agreement with the industrial actor.

• Miners’ Registration:

All artisanal authorization holders must have a registration card, referred to as Mining Producer Card. It is issued and signed by the Director General of Mines and Geology. In the case of a cooperative enterprise mining, within an industrial permit, the registration card must also be co-‐signed by the permit holder. Mining Producers may have agents or representatives, who are required to have mining producer identification cards signed by the licensees.

The miners working for a Mining Producer must also have IDs referred to as Mining Worker Cards and these link them to their producers. The Mining worker Cards per se are further distinguished into Mining Worker and Mining Worker Team Leader cards. All Producers must fill production and sales tracking notebook. The notebooks record diamonds sales, including the unique ID of the licensed buyer. Producers must transmit these pages on a monthly basis to the departmental mining directors. Producers must keep these records for at least 5 years.

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• Buyers and Sellers Registration and Licensing

-‐ Collectors’ Registration: Collectors are holders of buying and selling authorizations for rough diamonds, and will be subject to both licensing and registration, valid for the entire national territory. At present however, collectors are only subject to registration, but not licensing. For this reason, they are issued Collector Cards which are stamped with “for administrative purposes only”. Collectors must issue sales slips for all transactions. The registration of collectors (diamond buyers and sellers) has allowed the government to establish a traceability system up to the point of first internal purchase of diamonds. The subsequent step is designed to be the sale of diamonds by Collectors to Buying Houses. However, since Buying houses which would be the only authorized entities to export diamonds are presently absent from Côte d’Ivoire, the process and procedures for these transactions only exist on paper. Evidently, the question arises about the destiny of diamonds presently purchased by Collectors. This question is addressed in the general comments section on Internal Controls, which follows this review of the system.

At the time of the review mission, the following registrations and licenses were confirmed:

ASM authorizations 212 Mining Worker Cards 1,585 Mining Worker Team Leader Cards 306 Collector Cards 175 Total 2,278

Fees for ASM authorizations and Mining Workers Cards have been waived for 2013, as a way of encouraging registration.

-‐ Buying Houses: Because of the UN embargo on Côte d’Ivoire diamonds, there

are presently no Buying Houses, i.e. only entities allowed to export, in the country. In fact, the authorities hope to start attracting these investors once the country integrates the Kimberley Process Certification Scheme, as that will become a positive signal for the probable lifting of the embargo. There are procedures in place for Buying Houses registration and operations as business entities. They are subject to licensing by ministerial decree, and like collectors will be required to issue sales slips for all diamond purchases, either from collectors or directly from producers (artisanal miners or cooperatives). Buying houses would only export diamonds accompanied by a Kimberley Process Certificate.

All diamond buyers, whether collectors or buying houses, must issue sales slips which record the amount paid, weight and number of stones. The slips must contain the unique IDs of both the buyer and the seller. One copy is for the buyer, one for the seller, and one for the departmental mining director in the case of collectors, and the SEEPMP in the case of buying houses.

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• Monitoring: The departmental mining directors are charged with carrying out periodic random spot checks at mine sites to verify that all miners are licensed. The team was told that they have recently begun giving formal warnings to unlicensed miners. In SODEMI zones, field agents conduct joint patrols with the national military police. The departmental mining directors are also required to carry out each quarter, at least two random inventory checks of collectors. Also, the mining cooperatives send mining guards to all mining sites and they also play a role in making sure that all miners at the site are licensed and authorized by the cooperative to conduct their activity. These guards also oversee and collect production.

The departmental mining director collects all production and sales tracking sheets from registered producers in a given department at least once every quarter. The data is digitized and then transmitted to the SEEPMP in Abidjan. The departmental mining director collects all sales slip data from all collectors in the zone once a month. The data is digitized and transmitted to the SEEPMP in Abidjan. The SEEPMP digitizes all sales slips from buying houses when they are surrendered as part of an export procedure, or at any other time that the SEEPMP may request the slips.

The SEEPMP maintains a number of databases in MS Access, including: (i) Mining workers; (ii) Licensed mines; (iii) Production and sales data; (iv) Collectors; (v) Exporters; (vi) KP Certificates; and (vii) Infractions and Irregularities. Because of unique ID numbers for all actors in the sales and production chain, data can be cross-‐ checked and linked across different databases. The databases are password protected and backed up regularly. The SEEPMP is required to submit all quarterly and biannual data to the KP Statistics web portal in accordance with KP procedures. The Secretariat may ask the SEEPMP to prepare other statistical reports for the internal use of the Secretariat as needed.

• Investigations:

The following irregularities result in an investigation with the appropriate authorities: (i) Discrepancy between quantities purchased by collectors according to buying houses and quantities purchased according to production and sales notebooks; (ii) Discrepancy between the declared inventory of the buying house and the observed inventory during spot checks; and (iii) Discrepancy between the sum of all purchases and the observed inventory during spot checks minus the sum of all sales.

During an investigation, if the discrepancy involves a buying house, the Secretariat must suspend issuance of a KP Certificate until the issue is resolved. The Secretariat may also recommend to the Mining Minister to suspend the buying house license in certain cases. During an investigation, if the discrepancy involves collectors, the departmental directors do not stamp the collector’s card until the situation is resolved.

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Mining agents have the power to investigate infractions of the Mining Code as judicial police. Mining agents can call about law and order enforcement officials for assistance as needed. However, law enforcement officers cannot conduct checks of mining-‐related infractions on authorized mining claims without the presence of the mining administration. The verification of all mining documents is the competence of the Mining Administration.

In the case of ASM activity on industrial research permits, the operator must control the boundaries and respect for the limits set for the ASM activity. The operator can call upon law and order officials to enforce these boundaries. Confiscation of rough diamonds is possible in two general cases: (i) Attempt to import or export diamonds at a border besides the international airport of Abidjan (customs infractions); and (ii) Any diamond outside of the legal chain of custody (mining code infraction).

In the case of mining code infractions, the diamonds are returned to Abidjan and stored by the KP Secretariat, which organizes the sale of the diamonds. In the case of customs infractions, the diamonds are returned to Abidjan and stored by the Customs authorities. The KP Secretariat is informed. The sale of the product is conducted under Customs procedures with the involvement of the KP Secretariat.

The following infractions are relevant to the KP procedures: (i) Buying and selling diamonds without an authorization; (ii) Not providing monthly declarations; (iii) Mining without a license; (iv) Possession of rough diamonds without proper documentation; (v) Falsification of documents; (vi) Mining or buying/selling without the required registration cards; and (vii) An export attempt without a valid customs declaration. Penalties for the above infractions are currently under revision as part of the Mining Code revision process, but range from fines of 5,000 francs ($10) to 10 years in prison.

• Traceability: As indicated above, all actors involved in production-‐sale-‐purchase-‐

export of diamonds must be registered with unique identifiers. Mining producers record production, including the unique IDs of the mining licensee, mining worker and the diamond collector (point of first sale). Sales slips must accompany all transactions, and the unique IDs of both the buyer and seller must appear. All sales slips are filled out in triplicate: one for the buyer, one for the seller, and one for the government. The government enters all data from sales slips into a national database filled in at a departmental level and transferred to Abidjan for analysis and compilation. When exports will become operational, all sales slips of the Buying House will be verified and authenticated and the recorded sales will be compared with a physical inventory declaration and inventory check.

At present, all selling and buying transactions occur on Thursdays. This adds an element of control as oversight of transactions is facilitated through scheduling.

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Traceability Elements: (DMD – departmental Mining Director)

Action Physical evidence Comments Registration of all actors involved in production, sale, and purchase of diamonds

ID cards with unique identifiers A database of all registered and licensed actors

Mining Producers Record Transactions

Production and sales tracking notebooks

Producers submit monthly records to the DMDs; Must keep records for at least 5 years.

All transactions accompanied by sales slips issued in triplicate: Copy for the buyer Copy for the seller Copy for the DMD

Sales slips which record the amount paid, weight and number of stones.

Unique IDs of sellers and buyers appear on sales slips

Local departments enter all data from sales slips into a database

Data transferred to Abidjan for compilation and analysis

A departmental production and sales database (in Séguéla and Tortiya) A national consolidated production and sales database

Because of unique IDs for all actors in the sales and production chain, data can be cross-‐checked and linked across different databases.

SODEMI and its role in the Internal Controls System 67. SODEMI is the state national enterprise for diamonds. In June 2013, the President of

Côte d’Ivoire signed three decrees granting diamond exploration permits to SODEMI. Meanwhile, the Minister of Mines signed a decree authorizing and mandating SODEMI to organize Artisanal and small-‐scale diamond mining inside its permit areas, a form on “indirect” licensing. The KP Secretariat approved the terms of the agreement to be signed between SODEMI and the cooperative enterprises. Specifically, the agreement stipulates that all KP procedures must be followed by all parties.

68. As such, SODEMI is responsible for controlling the boundaries and ensuring respect for

the limits set for the ASM activity. The company can call upon law and order officials to enforce these boundaries. SODEMI also ensures that all actors in their permit areas are legal (hold mining workers cads) and that all KP procedures are observed.

69. The SODEMI model is being heralded by the Government as a potential mechanism to

promote effective ASM governance and ASM/LSM cohabitation.

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Remarks 70. To establish a system of compliance for effective internal controls, the government of

Côte d’Ivoire has focused on positive incentives, organization and sensitization of ASM producers and Collectors. The system is designed to start fully operating at the “push of the GO button”, when sanctions will be lifted. To be able to do so, the Government has taken pragmatic approaches, such as allowing diamonds to be purchased by Collectors even though there are no legal channels in place for exporting. The diamonds are thus traceable up to the point of sale to Collectors and then evidently disappear through informal channels. However, the system is designed to remedy this situation when the embargo will be lifted, by requiring Collectors to sell to Buying Houses which will be in place for export purposes. The system will have an opportunity for a “dry run” in the period between expected integration of the Côte d’Ivoire into the Kimberley Process (November 2013) and the lifting of the embargo (April 2014).

71. In addition to the minimum requirements IV (a), IV (d) and IV (f), w.r.t. Internal Controls,

Côte d’Ivoire has been able to integrate into their system many of the recommendations and optional procedures: ensuring traceability; control over diamond mines; random spot-‐checks at mining sites; a functioning cadastre system (the government is receiving support from the World Bank to put in place a digital cadastre system), etc. These further enhance compliance of the country.

72. An element that typically threatens the effectiveness of internal controls is Corruption. It

is important for all institutional and non-‐institutional actors in the diamond supply chain to be sensitized on the issue. Specific anti-‐corruption policies and training to recognize evidence of corruption need to be set in place, and not be left to chance.

73. The welfare and development of mining actors, plays a strong role in the regulatory

compliance. Both government and SODEMI must have specific plans for development of the mining communities and for beneficiation by miners.

VIII. STATISTICS

74. Cote d’Ivoire has taken the necessary provisions to comply with the minimum KPCS requirements in IV(e) and V(b) of the KPCS core document. The procedures and the institutional framework for data collection have been set up and a statistical focal point (SEEPMP) has been appointed.

75. To collect and manage the relevant data the Permanent Secretariat for the Kimberley

Process in Cote D’Ivoire (SPRPK-‐CI) has set up a computerized database system (MS ACCESS) developed, maintained and managed by the SEEPMP.

76. At the core of the CI statistical system for the registration of the required KP data,

resides a computerized database, as recommended by recommendation 3 of the KPCS core documents. The database contains sixteen interlinked tables of which eight are already operational for the collection of data. Thirteen out of the sixteen tables reflect

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the full chain of custody from the registration of a claim by a miner, up to the delivery of a KP certificate, while three tables (one on infringements, one to verify collectors’ data and one to verify buying houses’ data) are dedicated to internal controls. The information to be collected with these tables is sufficient to provide the required data, in line with the principles set out in Annex III of the KPCS core document.

77. Since the field launch of its KPCS compliance system in May 2013, the mining

administration has begun tracking production and sales statistics. As noted earlier, each licensed miner – which is currently limited to cooperative enterprises operating inside the SODEMI permit area, in order to respect the U.N. embargo – is required to record each diamond discovery, the unique government-‐issued ID of the worker who found the stone (assigned as part of the mining worker card system), the weight, and the unique government-‐issued ID of the purchaser (assigned as part of the collector card system, which is currently being piloted for statistical tracking purposes; buying and selling licenses of diamonds are currently not issued by the government due to a 2002 administrative decision and in respect of the 2005 UN embargo).

78. The system currently contains the following tables:

• Registry of production

• Registry of mining producers

• Registry of collectors

• Registry of members of cooperatives

• Registry of mining workers

• Registry of sales slips

• Registry of receipts

• Registry of sales

• Registry of declarations of buying houses

• Registry of declarations of collectors

• Registry of exporters

• Registry of infringements

• Registry of verifications of declarations of buying houses

• Registry of verifications of declarations of collectors

• Registry of issued KP certificates

79. Registration of the data in the database is done in the offices of the Departmental

Mining Director (DMD), which also keeps a hard copy of the original forms. This data is not only registered on the relevant form but also registered by the DMD’s office in the database. A paper copy of all documents and a copy of the updated database is sent on

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a memory stick on a monthly basis to Abidjan for verification. In the future it is foreseen that the database will be stored on a central server in Abidjan and that it will be possible to send updates and corrections over internet.

80. The quality of the data is guaranteed both by quality checks on input (e.g. check for

duplications or inconsistencies in linking fields) and by the control mechanism in which data from the local office is verified centrally in Abidjan by the SEEPMP based on copies of the original registered documents.

CADASTRE, registration of the locations of the claims

81. Although Cote d’Ivoire currently does not have a unique cadastre for the management

of land use, some information on the locations of the claims is registered by the Ministry of Mines and Energy. The responsible department for the registration of the claim depends on the size of the claim. Large, industrial claims are evaluated and registered at the level of the central administration in Abidjan, while small artisanal claims are assessed and registered in the office of the DMD and registered by the department of the Prefecture. The registration of a claim requires a detailed description of the coordinates of the rectangle defining the claim (corners and central point) together with an drawing of the borders of the claim on a (copy of) a map. The DMD and the department of Industrial Mining liaise upon issuance of claims, to verify that there is no overlap or that the claim falls within the limits of SODEMI’s claim.

82. SODEMI is currently the only holder of industrial claims (three in the Seguela area and

one in preparation in Tortiya). The RM team was unable to verify the existence of an electronic database that contains information, other than a scan, on coordinates in latitude and longitude for artisanal mining claims.

PRODUCTION

83. For the period covering May 29, 2013 , the start of the registration of production, till

September 30, 449,09 carats representing 524 stones were reported to the SEEPMP by two cooperatives, Diarabana (144,09 carats, for a value of XAF 1.964.300) and Boby (305,06 carats for a value of XAF 31.042.500 ). The data on the production is registered in the seat of the cooperation when the transaction between a collector and a miner takes place. The fields registered in both the registry and on the sales slip do contain the number of stones, the total weight in carat and the total value, but lack any classification of the stones, as is common in the other Mano River KP participants.

84. During the over flight by helicopter several zones of activity were observed, with Bobi

and Diabarana being by far the most active but not the only active sites. The RM team is aware that the fact that only two of the cooperatives did register production so far, relates to the ongoing process of changing the legal structure of the cooperatives to fit in the new institutional framework. The proper registration of the production will therefore only be verifiable when this phase of the implementation has concluded and all production of all cooperative will be registered.

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85. On September 10, 2013, the Chair of the KP Working Group on Statistics conducted a 3-‐ hour virtual training with the head of the SEEPMP, the KP Permanent Secretary and the several other members of the KP Secretariat. While the government is not yet reporting statistics to the KP, because of the UN embargo, the SEEPMP head was formally named to the KP Working Group on Statistics chair as the focal point, and a username and password assigned.

86. The SEEPMP has established all databases necessary to fully comply with KPCS minimum

reporting requirements on statistics once exports resume, including a database for KPCs, a database for official diamond exports (including information by value and by carat weight), and a database compiling all production records submitted by departmental mining directors in diamond producing zones.

Remarks

87. A complete assessment of Cote D’Ivoire statistical system will only be possible when

actual exports within the KPCS can be effectuated and all systems and procedures will be fully operational for all cooperatives.

88. The RM team can confirm that up to the first point of sales the statistical system

contains enough information to be able to fulfill the minimum KPCS requirements IV(e) and V(b). A full assessment, however, will require a comparison of the records registered at the DMD offices with those registered centrally by the SEEPMP in Abidjan.

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IX. CONCLUSIONS

89. Overall, it was a very productive and useful Review Mission. The RM team generally had access to all information, data and individuals that it requested, and it notes with satisfaction that Côte d’Ivoire’s institutional framework and legal procedures for ensuring compliance with KPCS minimum standards is largely in place. In addition the system for tracking diamond from production to the first sales is in place, though it needs to go further up to the export point.

90. The SODEMI model based upon interaction with cooperatives enterprises stands for a

successful initiative that needs to be extended to all the mano river belt KP participants to enhance the achievement of quick KP compliance in the region.

91. The RM team acknowledges the fact that it is impossible for Côte d’Ivoire to fulfill all

KPCS minimum requirements and for the KP to check compliance while the country is still under UN embargo, since no exports are allowed and therefore the full legal chain of custody cannot yet be implemented. The team has taken note of the Ivorian Government’s intention to develop a transition strategy for the period between achieving (virtual) KPCS compliance and the lifting of the UN embargo, which would allow for the re-‐opening of diamond buying houses and stockpiling by those buying houses.

92. Based on the findings of its mission and as an input for the Government’s transition

strategy the RM team has made a number of recommendations for further work needed in order for Côte d’Ivoire to be able to achieve full KPCS implementation.

X. RECOMMENDATIONS

A. GENERAL 93. It would be opportune to embed relevant rules and procedures for KPCS

implementation in the Mining Code as to further strengthen the robustness of the legal framework.

94. The KP Permanent Secretariat’s authority needs to be clearly defined and identified, its

structure reinforced and directly attached to the Minister of Industry and Mines. 95. It would be important to strengthen the Ministry of Industry and Mines’ Directorate for

Artisanal Mining in order to better support and monitor artisanal mining activities outside the SODEMI concession areas, and set up a comprehensive plan for enhancing diamond mining activities in the region of Tortiya.

96. The RM team can only encourage the Ivorian Government to develop a sound transition

strategy for the period between achieving (virtual) KPCS compliance and the lifting of the UN embargo, which would allow for the re-‐opening of diamond buying houses and (interim) stockpiling by those buying houses. Or otherwise, the Government would

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explore the option of granting a budget to SODEMI to secure stockpile by buying from the collectors, as it remains quite evident that the current production purchased by the collectors end in informal hands. This constitutes a serious threat for the neighboring countries.

97. Implementation of a transition strategy should be supported and monitored in

coordination with the Friends of Côte d’Ivoire (FOCDI) group, the KP Working Group on Monitoring (WGM) and the UN Group of Experts and it should be an obligation for the Government of Côte d’Ivoire to invite a KP Review Visit within six months following the lifting of the embargo to assess the implementation of the complete KP compliance system in Côte d’Ivoire.

B. OPERATIONAL 98. The RM team would like to stress the importance of diamond valuation training and the

need for the KP Permanent Secretariat to bring its evaluation premises up to standard with the correct space, lighting and equipment required.

99. Customs staff at all airports and land borders must receive training on KP rules and

procedures, in particular those customs officials at the airports and land border posts closest to the diamond mining areas.

100. Though the cooperatives are doing a tremendous work in terms of ensuring follow

up of diamond production and community development activities, they still need to build offices for their sales transactions rather than having them in open-‐air. Elementary diamond valuation equipment and some kind of training on diamond valuation would be necessary in terms of capacity building.

101. To further strengthen the statistical system the RM team would recommend the

following:

1. The establishment of a single computerized cadaster of claims to simplify the registration of claims, independent of size.

2. A more detailed description of the stones at the first point of registration as is

the case in the neighboring Mano River Basin KP countries. A classification of stones based on a limited number of weight classes could assist CI in detecting and analyzing anomalies e.g. unexpected differences in average price per carat for different cooperatives or anomalies.

3. To complement the registration of the stones, with the registration of a picture

of the stones in a computerized database.

4. The provision of a more elaborate system for tracking changes in the data, to facilitate reconciliation of KPCS data with other KP participants.

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Annex 1: Programme of the Review Mission

September 30, 2013 (Monday) Time Activity Venue 8 :45 a.m. Pick-‐up from hotel Novotel Abidjan 9 :00 a.m. – 10:00 a.m.

Courtesy call with Minister of Industry and Mines, in presence of Group of Friends

Cabinet, Ministry of Industry and Mines, Abidjan

10:00 a.m. – 10:30 a.m.

Briefing by KP Permanent Secretary and introduction to KP Permanent Secretariat

Presentation on diamond mining in Côte d’Ivoire.

General Direction of Mines and Geology Conference Room

10:30 a.m. – 11:30 a.m.

Working Session 1 Subject: Technical progress towards conformity

Presentation by KP Technical Advisor on work plan and verification checklist followed by discussion with all KP Secretariat members


11:30 a.m – 12:30 p.m

Working Session 2 Subject: Legal and regulatory framework

Presentation by KP Permanent Secretary of legal and regulatory framework followed by discussion with all KP Secretariat members


12:30 p.m. – 2:00 p.m.

Lunch Anciens combattants restaurant, Plateau, Abidjan

2 :00 p.m – 3:30 p.m.

Working Session 3 Subject: The role of mining administration technical services

-‐ Presentation and discussion on

databases and statistics -‐ Presentation and discussion on the

mining cadaster project -‐ Presentation and discussion on the

permitting process -‐ Presentation and discussion of the

mining code revision process


4:00 p.m. — Other courtesy calls TBD

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5:00 p.m

7:30 p.m. Dinner Espace Nandjelet, Blockhaus, Abidjan

October 1, 2013 (Tuesday) Time Activity Venue 8:45 a.m. Pick-‐up from hotel Novotel Abidjan 9:00 a.m. – 9:15 a.m.

Courtesy Call with Director-‐General of Customs

General Directorate of Customs

9:30 a.m. – 11:00 a.m.

Working Session 4 Subject: Customs procedures

-‐ Presentation by the Director of

Regulations and Litigation -‐ Presentation of different

stakeholders: o Sub-‐Director of International

Cooperation o Airport customs service o National financial transaction

analysis clearinghouse -‐ Discussion

General Directorate of Customs Conference Room

11:00 a.m – 12:30 p.m

Visit to KP Secretariat headquarters and discussion of diamond valuation capacity

KP Secretariat, Vridi

12:30 – 2:00 p.m.

Lunch Maquis du Val, Cocody, Abidjan

2 :00 p.m. – 2 :15

Courtesy call with Director-‐General of SODEMI

Office of Director-‐General, SODEMI

2 :15 – 4:00 p.m.

Working Session 5 Subject: Organization of artisanal miners

-‐ Presentation by SODEMI senior

adviser on diamond miner cooperatives

-‐ Presentation by KP Secretariat Washington Declaration focal point

-‐ Presentation by Civil Society KP focal point

-‐ Discussion with civil society members

SODEMI Conference Room

4:30 p.m. – 5:00 p.m.

Meeting with the President of the National Council of the Extractive Industries Transparency Initiative (EITI)

Headquarters of EITI National Council

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6:00 p.m. Courtesy call with Prime Minister Office of Prime Minister

7:00 p.m. Official welcome dinner TBD

October 2, 2013 (Wednesday) Time Activity Venue 8:30 a.m. Pick-‐up from hotel Novotel Abidjan 9:00 a.m. Flight to Séguéla (with stopover in Daloa)

Flyover of diamond mining areas in Seguela

11:00 a.m. Courtesy visit with local authorities (prefects, sub-‐prefects) and ONUCI (U.N. peacekeeping mission)

Préfecture

12:00 p.m. Lunch Hotel Carrefour 1:30 p.m.— 3:00 p.m.

Visit with Departmental Mining Directorate (both Séguéla and Tortiya)

Departmental Mining Directorate Office

3:30 p.m. – 5:00 p.m.

Group meeting with 20 mining cooperative presidents

Sous-‐prefecture Duala

7:30 p.m. Dinner Hotel Carrefour

October 3, 2013 (Thursday) Time Activity Venue 8:30 a.m. Departure from hotel Hotel Carrefour 9:00 a.m. — 9:45 a.m.

Meeting with villagers elders of Bobi Bobi

10:00 a.m.— 11:00 a.m.

Visit to active mining site and discussion with mining workers (walking time: 20 minutes each way)

Bobi

11:30 a.m. – 12:00 p.m.

Visit to Bobi kimberlitic dyke Bobi

12:00 p.m. – 12:30 p.m.

Visit to SODEMI field installation and discussion with field staff

Bobi

1:00 p.m. – 2:30 p.m.

Lunch Bobi

3:00—3:45 p.m.

Meeting with village elders in Diarabana Diarabana

4:00 p.m. — 5:00 p.m.

Meeting with diamond collector union Bobi

5:00 pm – 5:30 p.m.

Observation of a public sales session by the mining cooperative

Bobi

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October 4, 2013 (Friday) Time Activity Venue 8:30 a.m. Pick-‐up from hotel Hotel Carrefour 9:00 a.m. Return to Abidjan

12:00 p.m. Lunch Le Réservoir, Port-‐Bouët, Abidjan

3:00 p.m. Debriefing with the Minister of Industry and Mines

Cabinet, Ministry of Industry and Mines

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Annex 2: Maps of Productive Zones

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Annex 3: Relevant Pictures

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