Kimberley Process approves export of Zimbabwe diamonds

by eyetee | August 3, 2010 12:00 am

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Zimbabwe has been given the go-ahead by the Kimberley Process (KP) to carry out two supervised limited exports of rough diamonds from its controversial Marange field.

The announcement comes following consensus reached within the KP at the annual meeting of the World Diamond Council (WDC) in St. Petersburg, Russia.

While diamond groups hailed the decision, African Consolidated Resources (ACR), the mining company that holds legal title to the Chiadzwa district where the fields are located, is warning international buyers not to buy rough from Mbada Diamonds and Canadile Miners, joint companies working with the state-owned Zimbabwe Mining Development Corp. (ZMDC). Earlier this year, the Supreme Court issued an injunction against the companies not to sell diamonds until ownership is determined. ACR says any mining done since September 2009 at the site has been in contempt of court.

After months of debate over the status of the diamonds, human rights abuses, and the arrest and recent release on bail of activist Farai Maguwu, the KP says it will allow two exports of diamonds from Marange produced since May 28. At the same time, it will conduct a review mission to Zimbabwe. Its monitor, Abbey Chikane, will supervise the second export to be held the week of Sept. 6.

KP chair Boaz Hirsch called the agreement “a victory for the Kimberley Process.”

“The past several months have been difficult, but they have clearly demonstrated that not only does the Kimberley Process have teeth, it is also able to achieve results.”

In his address at the opening ceremony, Moti Ganz, president of the International Diamond Manufacturers Association (IDMA), urged KP members to accept Chikane’s findings, which found the Marange diamonds to be legitimate.

“We need to do this to better the lives of the people of Zimbabwe,” Ganz said. “We need to do so immediately because the release of the vast quantities of rough diamonds that are accumulating into the diamond pipeline all at once will cause a catastrophe [in the market].”

Nadim Kara of Partnership Africa Canada (PAC) says the agreement is “far from perfect, and it will take considerable efforts by all parties to the Kimberley Process, especially Zimbabwe, to make it work.”

“The crisis in Zimbabwe’s diamond sector should act as a wake-up call to governments and the diamond industry,” Kara said. “This issue is too important, both to consumers and to diamond mining communities, to keep lurching from crisis to crisis. The system needs urgent and far-reaching reform at a time when consumers are demanding action on blood diamonds.”

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