The Unseen Path from Basel to Koidu
March 30, 11 I made an unusual journey last week spending the first half of it at a diamond mine in Looking at the glitter and high-end offerings, the rich and (some) famous, the Baselworld show this week had plenty of fanfare that did not provide a stage for hard working people living in remote and unglamorous places. Some of these people go through life eating barely nutritious meals, sleep on bare floors of hardened mud, collect wood for fire and carry buckets of low quality water on their heads for miles so they have water to drink. In this life, electricity is not a given, medical care is basic and common components of western life such as Internet access or health insurance are practically non-existent. Some of these people are part of the diamond industry. They work at mines, dig for diamonds on river banks or have set up their mud huts in places where diamond concessions will later be built. Many in the West view the diamond industry very negatively. One common criticism is that it steps on the backs of the poor and neglected just so women could wear something special for the opening night at the opera.
Relocation is an especially dirty word, moving people from their homes to make room for mining. However, I found a different and surprisingly positive sight during my trip to the Kono district, where a decade ago rebels sought diamonds to finance their war and left devastation behind when they retreated. New and better houses were built by Koidu Holding, the mine owners, to replace the old ones near the mine. The new houses come with better quality water, a health clinic, schools and a market place. The quality of life is vastly improved and those that were relocated are genuinely happy with their new accommodations.
Visiting a nearby girls’ school, also about to move to a better facility with flush toilets, I met children whose parents work at the mine, receive medical care they did not have before and now enjoy the close attention of their government, all this thanks to the diamond industry.
Some dull facts: the mine pays 6.5% royalty on exports, spends $14,000 on each new home, and is investing $15 million in the new 1,000-house community project. Any and all local mine workers can bring family members to the mine's fully stocked and organized medical clinic. 10% of the mine's profits go to the government and another 10% to the local community – which comes on top of a 30% corporate tax. These funds can be earmarked to rebuilding infrastructures, education or any other worthy cause that improves people's lives. Again, thanks to our desire to celebrate an engagement with a diamond ring.
It's easy to be cynical and dismiss lines such as "we are supporting the local community." Some may indeed be paying lip service, but not all. The glitter at
Have a peaceful weekend.