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Diamonds to rake in US$2bn - Mpofu
Paul Nyakazeya, Zimbabwe Independent
November 03, 2011

http://www.theindependent.co.zw/local/33009-diamonds-to-rake-in-us2bn-mpofu.html

Zimbabwe is set to earn in excess of US$2 billion in gross revenue annually following the lifting of the ban on exports of its diamonds by the Kimberley Process early this week, according to Mines and Mining Development minister Obert Mpofu.

"Our current diamond production is estimated by volume to be in excess of 25% of the world production, and going by the values realised to date per carat, Zimbabwe is set to earn in excess of US$2 billion annually in gross revenue," Mpofu outlined to journalists this week. He maintained there were no conditions for the export of the diamonds.

All 76 members of the world's diamond-producing nations who met in Kinshasa, Democratic Republic of Congo (DRC) for a plenary meeting of the Kimberley Process Certification Scheme (KPCS) voted for Zimbabwe to be allowed to export gems from Chiadzwa, in the Marange district of Manicaland.

Wikipedia describes The KPCS as the process designed to certify the origin of rough diamonds from sources which are free of conflict. Introduced by United Nations General Assembly Resolution 55/56, the certification scheme aims at preventing "blood diamonds" from entering the mainstream rough diamond market. It was set up to assure consumers that by purchasing diamonds they were not financing war and human rights abuses.

The World Diamond Council (WDC) an organisation consisting of representatives from diamond manufacturing and diamond trading companies said it welcomed the agreement. Media reports show the debate on lifting the ban on Zimbabwe had been split between the diamond-producing nations, mostly the developing countries, and the diamond trading companies, mostly the developed countries.

The ban on Zimbabwe's diamonds had been inspired by lack of transparency in the way in which the gems are sold by the government-dominated companies that operate in Marange.

According to a proposal for development, compliant mining operations will share mine-level data with the KP Monitoring team on an ongoing basis with a view to ensuring transparency as regards KPC implementation in Marange. The KPCS chair Mathieu Yamba said exports may take place from other mining operations in the Marange diamond fields following KP Monitoring teams' verification of compliance.

The KP monitoring team will verify compliance of operations of the other producing mines to KP minimum requirements, including full access to these mining sites. The plenary endorsed the nomination of a KP monitoring team consisting of Abby Chikane and Mark van Bockstael.

In case of a lack of agreement between the members of the KP monitoring team, the matter would be referred to the Watts Griffis and McQuat Limited (WGM) for recommendation to the KP Chair.

WGM is Canada's longest running independent firm of geological and mining consultants, providing value-added professional services of the highest standards to the global mineral resource industry.

Mpofu said his ministry was ready to lead and champion the economic recovery of the country through a "robust, dynamic and aggressive policy to grow the mining sector in Zimbabwe whose growth is currently bullish and set to contribute in excess of 50% of our GDP".

He said all minerals would be exploited for the benefit of all Zimbabweans. "Every Zimbabwean is a stakeholder in the realization of our mineral wealth. It has been a long time coming, the determination and the resolve of Zimbabwe to assert its sovereign rights to its mineral wealth, although initially met with a lot of resistance, has finally yielded this victory," he said.

Zimbabwe said it commits to uphold the KPCS minimum requirements and will report to plenary 2011 and intercessional 2012 on actions such as identification of further investors, regulation of artisanal mining, fight against illicit digging and smuggling.

The KP Civil Society Coalition representatives in Zimbabwe will have access to the Marange area so as to allow continued reporting on KPCS implementation.

The decision will however be kept under constant review in light of progress towards KP compliance and shall apply until the KP plenary next year.

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