MINISTRY OF LANDS,MINES & ENERGY

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Lofa

Nimba

Sinoe

Bong

Gbarpolu

Grand Gedeh

Grand Bassa

Rivercess

River Gee

Grand Kru

BomiMargibi

Grand Cape Mount

Maryland

Montserrado

Zoi

ThanWeajue

WEASUA

Kumgbor

Biedien

Mano Godua

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B

B

C

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D

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4 4

3 3

2 2

1 1

DIAMOND EXPORT FIGURES AND PROSPECTSREPUBLIC OF LIBERIA

Legend![ Selected Diamond Working TownsXY Diamond

Fault systemArrows (direction of movement)Normal fault (inferred)Normal fault (observed)

(( (( Thrust fault (inferred).. ..@@ @@Thrust fault (observed)

@@ Undifferentiated faultFault SystemPrimary roadRailway River

Prepared by: Emmanuel O. Sherman Geologist/GIS SpecialistExport stats & Photos Contribution: GDO/MLMEContact: eosherman2002@yahoo.com Date: April 6,2011

0 140 28070 Kilometers

G U I N E A

I V O R Y C O A S T

S I E R R A L E O N E

A T L A N T I C O C E A N

A T L A N T I C O C E A N

Map Ref: GDO1LGS040511

Internal control for diamond sales in LiberiaMinistry of Lands, Mines and Energy

Digger/Miner

Regional OfficeAuthenticity of Origin

Buyers/BrokersLicensee

Buyers/BrokersLicensee

National Diamond Center

Valuation and certificationClassification and controls

Export to MarketsRecord Keeping and rough classification

Mining site/regions

Staff consist of an inspectors, and an agent who keeps exploration records

Production data to Diamond Ctr (Voucher) + Digital photo

Database mgmt. Classification and valuationIssuance KP certificateDocumentation to Min. of finance.Royalties and TaxesPack and seal parcels for exportation Check and verify buyers/exporters license and voucher conforms with regional invoice

Regional offices validates licenses, record characteristics of

rough diamonds by evaluators. Digital photo of each stone.Vouchers

Vouchers

KP Certificate issuedExporters/Dealers

Exporters/Dealers

Production Data

Production Data

Voucher

ROUGH DIAMOND EXPORT PROCEDURES

Preparation for Export 1. All Diamond exporters are required to make an appointment at least 24 Hours before

presenting their diamond parcel to GDO for valuation and the processing of export documents. This will allow the GDO to make proper scheduling of exporters.

2. All exporters must bring a completed valuation form (example attached) where the indicated areas are completed. Copies of the Valuation Form are available at the GDO Office in the Ministry of Lands, Mines and Energy, Monrovia.

3. When completing their Valuation Form, exporters should weigh and categorize their

diamonds and make price allocations as indicated in the following format:

Industrials One price Gems Smalls -7 One price -13 to +7 One price 4 grainers 0.90 ct - 1.19 ct 5 grainers 1.20 ct - 1.39 ct One price 6 grainers 1.40 ct - 1.79 ct 2 carats 1.80 ct - 2.79 ct 3 carats 2.80 ct - 3.79 ct One price 4 carats 3.80 ct - 4.79 ct 5 carats 4.80 ct - 5.79 ct 6 carats 5.80 ct - 6.79 ct One price 7 carats 6.80 ct - 7.79 ct 8 carats 7.80 ct - 8.79 ct 9 carats 8.80 ct - 9.79 ct One price 10 carats 9.80 ct - 10.79 ct Special stones 10.80 carats and over Total price of all stones

All special stones must be detailed separately on sheet two of the valuation form. Export Procedure Upon arrival at the Government Diamond Office the identity of the exporter will be confirmed and an official pass provided. The validity of the exporter¡s̄ license will be confirmed from the MLME database. The exporter will present his parcel of diamonds (goods) together with the completed valuation form to the Chief Valuator at the Government Diamond Office. The Valuator will check the weight of the goods in the presence of the exporter to confirm the declarations made on the valuation form. The sort and selection of the goods will be inspected to ensure conformity. Finally the Government Diamond Office Valuer completes his valuation of the goods. Concurrently the Independent Diamond Valuator will observe the weight and check the sort and selection and also make his valuation. Valuations and Weights are recorded electronically. The 3% Royalty is calculated electronically based on the highest valuation. The final valuation form will be signed by all participants. After valuation, the parcel will be photographed, packed and sealed in a tamper proof container in the presence of the exporter. An Application to Export Diamonds Form (attached) will be completed and signed by the Applicant (Exporter) and the Chief Valuator. The Bureau of Customs representative, assigned to the MLME Government Diamond Office, will attest to the form, and the Minister of Lands, Mines and Energy or his authorised designate will complete signatures to the form. The exporter will present the completed Application to Export Diamonds Form and a copy of the Valuation form to the BPS (Bank Payment Slip) Section of the Ministry of Finance (Ground Floor). The exporter will receive a Bank Payment Slip for payment to the Central Bank of the calculated royalty. The exporter will instruct his bank to raise a certified cheque in payment of the royalty and after payment will return to the BPS Section to have the receipt confirmed. The exporter will return to the MLME Government Diamond Office where the Customs Officer will review payment documents and inform the Chief Valuator of his confirmation that all payment procedures have been followed. The Chief Valuator will complete the Kimberley Process (KP) Certificate, ensuring the tamper proof sealed diamond parcel and the Original KP certificate are sealed in a clearly visible manner, and given to the exporter.

DESCRIPTION OF INDUSTRY PARTICIPANTS For diamond licensing and control purposes four categories of participant are recognized by the Ministry of Lands Mines and Energy. Each category is described below detailing qualifications, licensing regulations and their responsibilities:

Diamond Dealer/Exporter Definition

· A person who holds a license to purchase diamonds from valid license holders and export diamonds out of Liberia

Qualifications

· Diamond dealership open to Liberians and/or Foreign nationals · All prospective diamond dealers must furnish copies of letters of recommendation

from the Liberian Diamond Dealers Association · All prospective non Liberian dealers must furnish copies of letters of introduction

from a recognised Bank · All dealerships must have Liberian participation

Licensing and Costs

· All prospective dealers must write a letter of intent addressed to the Minister of Lands, Mines and Energy with the following documents attached:

1. Two passport photographs 2. Business registration from the Ministry of Commerce and Industry 3. Partnership Agreement/Articles of Incorporation

· Applicants must provide a certificate from a recognised bank in Liberia confirming a capital of not less than US$ 50,000.00 deposited with them by the corporation/partnership

· Payment of Dealership License of US$20,000 · Obtain GDO ID card at the cost of $100

Offices

· All dealers will establish a buying office in Monrovia and notify the Ministry of the address.

· Ministry staff will at no cost inspect buying office · Dealers will trade in Monrovia only and will not visit mining sites directly · Dealers may employ licensed Diamond Brokers

Offices · All brokers will establish a buying office either in Monrovia or within the towns

covered by the Government Regional Diamond Offices and notify the Ministry of the address.

· Ministry staff will, at no cost, inspect buying office · Brokers will trade in within the confines of their office locations as detailed above

and will not visit mining sites directly · NOTE if Dealers employ agents, these persons will be issued permits and will obtain

ID Cards. However agents are not licensed and therefore cannot purchase or transport diamonds

· The Ministry of Lands Mines and Energy must be notified of employees operating within the buying office

Responsibilities and Reporting

· Brokers will only buy diamonds from identified and licensed miners · Brokers will only buy diamonds that have been identified through the issue of a

mineral voucher from GDO regional offices · Brokers will work with Regional Officers to ensure miners understand the process of

recording production at the regional office · A receipt must be issued for all purchases made. The receipt will include details of

mining license numbers and appropriate Mineral Voucher numbers · A monthly report will be filed with the Government Diamond Office including copies

of receipts. Failure to report will lead to fine or closure · All brokers are responsible to trade all diamonds with legal and registered dealers in

accordance with the laws of the Republic of Liberia Payment of all Fees

· Payment of fees must be handled by the applicants. No MLME personnel is authorised to process the payment of fees on behalf of the applicant.

Class C Diamond Miner Definition

· A Liberian who holds a legitimate and valid license(s) for up to 4 diamond mining claims, who is licensed to sell his production internally

Qualifications

· Class C mining license open to Liberians only

Licensing and Costs

18.72 Pink carat stone from Camp Alpha 80 Carat white stone fromWeasua 167 Carat stone from Weasua Fancy Blue & Yellow Diamonds from Gd. Cape Mount Co.194 Carat white stone from Kumgbor

Typical Liberian Rough Diamonds