New Price List for CAR Diamonds To Reflect Market, Remedy Undervalued Exports

Rough Market
10/10/2017 13:56

The Bureau d'Évaluation et de Contrôle de Diamant et d'Or (BECDOR) in the Central African Republic, which oversees the country’s production and trade of diamond and gold, maintains a database and assesses the value of diamond parcels that are to be exported from the country, has just set up a new price list - defining mineral prices between government and traders. The new price list for these mineral resources is designed to enable the State to have enough financial resources to meet its obligations, reports APA News (Agence de Presse Africaine). This price list was set up thanks to USAID, a US development organization, together with experts and other stakeholders of the mining industry in CAR that gathered this Saturday in Bangui. The country is rich in mineral resources, but is exploiting its diamond and gold in a traditional or artisanal way; CAR lacks a state structure capable of ensuring the smooth running of commercial activities relative to these minerals.

The experts declared the price list serving as the basis for taxation of these mineral resources outdated because of the increase in the price of diamond and gold on the world market. As a result, the State's export taxes do not reflect the real prices of diamonds or gold, leading a shortfall in needed revenue for the State. As a result of this situation, fraud is in full swing in the mining sector, APA states, since the price of mineral resources at present does not correspond to market reality - so dealers and exporters are able to under-declare the value of their goods. The introduction of a new price list is designed to contribute to the reorganization of the mining sector in order to attract more investors and avoid fraudulent exports.

Given the conflict the country is going through, the Kimberley Process has forbidden the CAR to export diamonds from the north. Only those from the western regions are allowed to be sold. These KP measures are justified by the fact that diamonds in eastern CAR, under the control of armed movements, are suspected of fueling the war in the CAR.