Fin24

Zimbabwe opens disputed diamond sale

2010-08-11 15:42

Harare - Zimbabwe on Wednesday opened the first sale of diamonds from its Marange fields since international regulators partially lifted a ban imposed after the military violently seized control of the mines.

About 900 000 carats valued at about $72 were on sale, according to Abbey Chikane, the monitor from the international Kimberley Process which is charged with preventing trade in "blood diamonds".

Buyers from the United States, Israel, Russia, Lebanon and India were at the auction at Harare's airport, some with pilots waiting to jet them out of the country afterwards.

"Indeed it is historic in that we have managed to satisfy the minimum requirements of the Kimberley Process," Prime Minister Morgan Tsvangirai said in opening the sale.

"We have put in place measures to ensure that we abide by the Kimberley Process principles and sell our diamonds in a transparent manner."

Kimberley last month ruled that Zimbabwe had ceased abuses by the military, which seized control of the Marange fields in late 2008, forcing out tens of thousands of small-scale miners.

Human rights groups say about 200 people died in the operation, and that soldiers then beat and raped villagers to force them to mine the gems in early 2009.

Kimberley blocked the sale of Marange diamonds in November last year, giving Zimbabwe until June to clean up its operations.

Zimbabwe has now contracted operations at Marange to two little-known South African firms, Mbada Diamonds and Canadile Miners, although the region near the Mozambican border remains a high-security zone with a strong military presence.

The Wednesday diamond sale will be audited by Ernst and Young. Chikane said the government's only role would be in presenting the stones to buyers.

"I have certified the goods and they are ready for export," he told AFP.

The current sale only includes gems mined over the last two months, since Chikane certified that Marange had complied with human rights standards.

Zimbabwe says it has a total of 4.5 million carats of diamonds in its stocks, which government values at $1.7bn - equivalent to more than half the national budget.

The sale is a rare point of agreement for Zimbabwe's unity government, formed last year by erstwhile opposition leader Tsvangirai and long-ruling President Robert Mugabe.

While critics fear that Mugabe will siphon off the diamond profits for his Zanu-PF party, Tsvangirai's party has pushed for the auction to shore up the state's dismal finances.

Some estimates predict that Marange could produce more than a billion dollars in diamonds a year, making it one of the biggest finds of the decade.

Zimbabwe has struggled to convince donors to provide direct budget support to the government. The Marange diamonds could prove a windfall that would help rebuild a country shattered by a decade of political unrest and economic collapse.

But finance minister Tendai Biti has highlighted the potential for abuse, telling parliament that none of the $30m in Marange sales ever reached the treasury before the ban last year.

- Reuters

Comments
  • Mark - 2010-08-11 16:03

    It’s an abomination; the diamonds are the same stock tainted by the abuses of the past. I would encourage any person worth his salt not to buy or wear any diamond from anywhere else as well. It’s the silliest thing to polish up a rock brought up from the depths of the earth through cheap labour and huge effort and claim it to be beautiful

  • Daniel - 2010-08-11 16:44

    900 000 carats at ABOUT $72? Jeez, a bit expensive don't you think?

  • Renier - 2010-08-11 16:51

    "none of the $30m in Marange sales ever reached the Treasury before the ban last year." It all probably went to mugabe's pockets. The man is not only a crazy dictator, he is a thief too.

  • steve J - 2010-08-11 17:14

    perhaps now they can start paying us the pensions that we have not had for last 7 years after loyal service to the government of the day.

  • ror - 2010-08-11 17:17

    Their diamonds are absolute rubbish so who on earth valued them at $380 a carat. The next joke will be again on the Zimbos ha ha

  • Gomo - 2010-08-12 08:27

    This is a joke! Mugabe makes Charles Taylor look like a saint..ask te Matabeles. I wonder how much Chikane got paid to open the KP?A big deal is made of some diamonds given to Naomi but Mugabe's thugs kill 200 people and take over a legitimate operation.NONE of that money will come back to the fiscus,Mugabe and cronies will steal it. Viva african politics!!

  • SHIARA - 2010-08-12 08:46

    @Mark.. excellent response and I couldn't agree more so i have copied your 'quote' to other pages. Nice one.

  • Mimosa - 2010-08-12 09:00

    Yeepi Yeepi go Zim go, reclaim your place. This is good news

  • makgalamapedi - 2010-08-12 10:07

    this little country is really endowed with minerals ranging from platinum, gold, diamonds,coal,nickel to name a few. what lacks is leadership.maybe one day after kicking out mad bob, this will become province number 10 and that will be another mining/industrial hub like gauteng.its my dream guys, lol.

  • 1ted - 2010-08-12 12:38

    Zimbabwe now trades with the nations that Mugabe hates so much... Ironic

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