Economic aspects of diamond certifications: 20 years of Kimberley Certification in Brazil

Abstract

The Kimberley Process Certification (CPK) is an international instrument for attesting the origin of diamonds, which intends to restrain the trade of diamonds from conflict areas and regulate its worldwide market. Established at the UN conference in 2002, the CPK encompasses 82 signatory countries, responsible for 99.8% of the diamond production. Brazil joined CPK at the end of 2003. Although its participation in the global diamond production is inexpressive, it stands as one of the singular member countries due to their deposit styles, from secondary source rocks, as well as their production idiosyncrasies, that directly influence their market dynamics and the purposes of the CPK itself. This paper presents the structure of the production of national diamonds and the causes and effects of Brazil’s entry into CPK. Furthermore, it analyzes the impacts of CPK in Brazil from a mining perspective through available data, including previous periods of CPK certification.