Blood Diamonds : the Tip of the Iceberg for the Jewelery Industry

Much attention has been focused recently on the scandal of conflict diamonds, most notably with the release last year of the Hollywood blockbuster, Blood Diamond. However, conflict diamonds represent the tip of the iceberg for the jewelery industry. Human exploitation is rife across the supply chain. While your average miner in the developing world is paid a pittance to work in extremely dangerous conditions, many of the world's diamonds ­ including so-called conflict-free diamond ­ are processed in India by bonded child laborers.

The diamond industry also stands accused of displacing indigenous people. It was severely criticized by Survival International for its treatment of Bushmen in Botswana, and been accused by the UN of violating ethical standards in the Congo. There have been many similar problems in other parts of the world. The jewelery industry also has a devastating impact on the environment. According to research by CAFOD, small-scale miners often use mercury in the extraction of gold. The mercury is frequently burned off in the open air, releasing highly toxic fumes. These can poison local people and their environment. In large-scale gold mining, huge areas of vegetation and topsoil are cleared, and rocks crushed and piled into heaps. Sodium cyanide solution is then sprayed over these heaps so that it soaks through the ore, bonding with the gold. The gold solution is collected and the gold removed using yet more chemicals. The waste left over can contain residual cyanide acids and other pollutants such as arsenic, and there have been a number of high profile incidents where spills have contaminated local rivers.

Other pollutants resulting from mining can cause even worse problems than mercury or cyanide. Sulphides in rocks can become exposed to oxygen and water, reacting to produce sulphuric acid. The acid then releases poisonous metals in the mine waste such as arsenic and lead, which seep into streams and contaminate groundwater. The huge volume of water used by open-pit mining can also deplete local rivers, streams and even underground reserves, causing serious problems for local people. So in the face of all these issues, what is the jewelery industry doing to clean up its act? There is some progress is being made, though there is still a long way to go.

The Council for Responsible Jewelery Practices has established a set of ethical standards for the industry to adopt. A number of NGOs are working with small-scale miners to help them to adopt safer and more environmentally friendly methods, as well as to obtain a better financial deal for their efforts. Independently certified fair trade gold is expected to become available in small quantities in 2009, but fair trade diamonds are still several years away from becoming a reality. In the meantime, a handful of jewelers such as Ingle & Rhode Jewelery already specialize in sourcing precious metals and gemstones that have been produced in a socially and environmentally responsible way, thereby using the power of consumer spending to drive change throughout the supply chain.

If you want to learn more about the social and environmental impact of gold mining on communities around the world, visit the Pure Gold? Exhibition at the.gallery@oxo, South Bank, London 21 May to 1 June 2008.