MINISTRY OF MINES AND ENERGYSECRETARIAT OF GEOLOGY, MINING AND MINERAL TRANSFORMATION

NATIONAL DEPARTMENT OF MINERAL PRODUCTION

Samir Nahass

8ª Annual Conference of CASM

Brasília, outubro de 2008

KIMBERLEY PROCESS CERTIFICATION SCHEME

Rough Diamonds

Steps to get the law for rough Steps to get the law for rough diamond certificationdiamond certification

LeiLei

Instrução Instrução Normativa Normativa

-SECEX-SECEXPortaria DNPMPortaria DNPM

AÇÃOAÇÃO EXPOSIÇÃO DE EXPOSIÇÃO DE MOTIVOSMOTIVOS

ASSINATURA ASSINATURA MINISTROSMINISTROS

CAMEXCAMEX

PRESIDÊNCIA DA PRESIDÊNCIA DA REPÚBLICA (Casa REPÚBLICA (Casa Civil - Congresso)Civil - Congresso)

Medida Medida ProvisóriaProvisória

Temporary Temporary measuremeasure

Portaria Conjunta Portaria Conjunta DNPM - SRFDNPM - SRF

LEGAL FRAMEWORKLEGAL FRAMEWORK

Law Nr. 10,743 - of 9th October 2003

Implements the KPCS for export and import of rough diamonds, and determines other provisions.

Law Nr. 7,805, Art. 21 - of 18th July 1989

Illegal mining activity, such as those that do not have DNPM´s permit, is a crime and the responsible may be arrested .

Law Nr. 9,605, Art. 55 - of 12th February 1998

Mineral prospecting and mining activities without environmental permits are crime and

the responsible may be arrested.

Joint Regulation Nr. 397 – of 13th October 2003

It turns on the emission of the rough diamonds origin certificates, as well as to the authorization request for outgoing shipments and incoming shipments..

Regulation Nr. 398 – of 14th October2003

It is about the request of the origin certificate for export rough diamonds and it presents the related application form

Regulation Nr. 209 – August 5, 2003 (DNPM)

Regulation Nr. 192 - May 25, 2007 (DNPM)

Is about the export and import authorization of rough diamonds, and criate The Report of Production and Comercialization of rough diamonds.

INSTITUTIONAL FRAMEWORKINSTITUTIONAL FRAMEWORK

MINISTRIES

ORGAMS

ATTRIBUTIONS

MINES AND ENERGY

SGM

DNPM

Coordination-General Focal Point Issuing and controlo f Certificates Statistical Data Statistical Data Bank

DEVELOPMENT INDUSTRY AND

FOREIGN TRADE

Dept. of External

Trade

Consumptions Statistical Data

JUSTICE

Dept. of Federal Police

Combat the Smuggling

FINANCE

SRF Issuing of Certificate* Customs Control

EXTERNAL RELATIONS

Division of Market Access

Facilitator Reception and distribution of Documentation Interchange among the Embassies and

Ministries

PAÍSES PRODUTORES DE DIAMANTES BRUTOSPAÍSES PRODUTORES DE DIAMANTES BRUTOS

Fonte PrimáriaFonte Primária Fonte SecundáriaFonte Secundária

África do Sul, Botsuana, África do Sul, Botsuana, Namíbia, Angola, RDC, Namíbia, Angola, RDC, Rep. Congo, Rep. Centro-Rep. Congo, Rep. Centro-Africana, Gana, Costa do Africana, Gana, Costa do Marfim, Libéria, Serra Marfim, Libéria, Serra Leoa, GuinéLeoa, Guiné

Brasil, Guiana,Brasil, Guiana,

VenezuelaVenezuela

CanadáCanadáFederação RussaFederação Russa

ChinaChina

ÍndiaÍndia

AustráliaAustrália

MalásiaMalásia

Áreas promissoras

BRAZILIAN DIAMANTIFEROUS AREASBRAZILIAN DIAMANTIFEROUS AREAS

Main areasMain areas

OcurrenciesOcurrencies

Áreas promissoras

50% Prod. 50% Prod. Naníbia Naníbia OffshoreOffshore

PAÍS

1.00 ct

US$ 1.00

US$/ct

CE

87,485

4,092,359

46.78

Israel

33,913

7,525,666

221.91

EAU

30,621

512,427

16.73

USA

15,617

5,383,282

344.71

Canadá

212

515,036

2,429.43

África do Sul

1,406

14,063

10.00

TOTAL

169,264

18,042,836

106.60

BRAZILIAN EXPORTS - 2007BRAZILIAN EXPORTS - 2007

BRAZILIAN EXPORTS – 2007 (Value)BRAZILIAN EXPORTS – 2007 (Value)Fonte: DNPM – Adaptado por Nahass, S.Fonte: DNPM – Adaptado por Nahass, S.

Israel

USA

EC

UAE

Israel (41.74%)

US$ 7,525,666

UAE (2.84%)

US$ 512,427EC (22.70%)

4,092,357

USA (29.86%)

US$ 5,383,282

CERTIFICATES ISSUED - 2007

European ComunityEuropean Comunity 1616

IsraelIsrael 1414

South AfricaSouth Africa 1212

USAUSA 7 7

UAEUAE 4 4

CanadaCanada 2 2

TOTALTOTAL 5555

EVOLUTION OF THE BRAZILIAN EXPORTS EVOLUTION OF THE BRAZILIAN EXPORTS (in value)(in value)

0

5

10

15

20

25

30

2000 2001 2002 2003 2004 2005 2006 2007

YEAR

EXPORT - VALUE (US$ 1,000.000.00)

OTHER ISSUES

Discrepancies in the Brazilian statistics, 2004-2005-2006.

(The production values are inferior to the export values in a same year).

Export data for certain country they don't coincide with the import data respective of that country. The problem is being

solved with the team of diamonds of DNPM.

It is recommended to enlarge the participation in courses, seminars etc. offered by SCPK.

It is recommended to elaborate technical works on all the aspects related to the African rough diamonds, well based

and that are of interest, so that they can be presented during the intermediate meetings of SCPK.

It is recommended the organization of a countries mission, composed by governmental and private companies experts, to visit the main areas and African diamond mines (primary

and alluvial), so that they can correlate some deposits among them. It is recommended to include in the route of visits the kimberlitic mines of Botswana and South Africa and the small-scale mining of the Democratic Republic of

Congo and of Angola.

Continuation

ALIANCE

GOVERNMENTGOVERNMENT

PRIVATE SECTORPRIVATE SECTORCIVIL SOCIETYCIVIL SOCIETY

MinistriesMinistries

Federal PoliceFederal Police

Estadual GovernmentEstadual Government

City HallsCity Halls

Universities Universities

ComunitiesComunities

SindicatesSindicates

CooperativesCooperatives

ONG’sONG’s

Mining EnterprisesMining Enterprises

International International Financial SupportFinancial Support

Rough diamond from Minas Gerais (25,17 ct – Rough diamond from Minas Gerais (25,17 ct – US$ 2 million) - Sold to USAUS$ 2 million) - Sold to USA

COROMANDEL – MINAS GERAISCOROMANDEL – MINAS GERAIS

MUITO OBRIGADOMUITO OBRIGADO