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February 2010 Vol 3, Mining and Industry Indaba

No one monitoring airlifting of Chiadzwa diamonds

Tue, Feb 02, 2010

HARARE – Controversial mining house Mbada Diamonds has airlifted diamonds from Chiadzwa to Harare without monitoring by the Mineral Marketing Corporation of Zimbabwe (MMCZ), police or any other authority in the country, in what appears a clear violation of Kimberley Process (KP) calls for maximum transparency at the notorious diamond field.

Acting head of marketing at the MMCZ – the sole marketing and selling agent of all minerals produced in the country – Masimba Chandavengerwa told Parliament’s mines and energy committee that although his organisation evaluates and monitors the diamonds, it has not been represented when the gems are airlifted from Mutare to Harare.

Asked by ZANU PF legislator Simbaneuta Mudarikwa if the MMCZ was aware of the airlifting of diamonds from Chiadzwa, Chandavengerwa stunned the committee saying: “At the moment, (the airlifting is being done) without our knowledge.”

The MMCZ acting boss also conceded that handling of diamonds at Chiadzwa, also known as Marange, still fell short of KP standards – two months after Harare promised to act to review operations at the diamond field to ensure compliance with the requirements of the world diamond industry watchdog.

Chandavengerwa said: “In terms of systems there is work that has to be done to meet the KP” standards. He however ruled out under-invoicing of diamonds by Mbada saying “our own evaluators did the evaluation. Mbada also did their own, (whose results) which were very, very close”.

Mbada Investments is a joint-venture formed last year by the government’s Zimbabwe Mining Development Corporation (ZMDC) and Grandwell of South Africa to mine diamonds at Chiadzwa.

The ZMDC is also partnered another little known South African firm Core Mining and Minerals in a joint-venture operation trading as Canadile Miners to exploit the Chiadzwa deposits.

Harare agreed at the KP meeting in Namibia last November that all shipments from all production sites in the Marange field will be "subject to examination and certification by a KP monitor prior to export to ensure that the production and export of rough diamonds is compliant with the minimum standards of the KP".

But the Zimbabwean government and the KP are yet to agree on a monitor to keep an eye on the Chiadzwa operation with reports that Harare insists the monitor must be a citizen of an African country. Apparently, the KP had proposed to send a diamond expert from Europe to monitor the Chiadzwa claims.

A planned sale of 300 000 carats of diamonds by Mbada was aborted last month because of the absence of a KP monitor and also because the mining firm had failed to inform relevant government departments including the MMCZ.

The KP is a joint government, industry and civil society initiative to stop trade in conflict diamonds – rough diamonds used by rebel movements and other rouge groups to finance wars against legitimate governments.

Under a set of measures meant to bring Zimbabwe’s controversial diamond industry in line with KP standards, the diamond watchdog must monitor production and sales of diamonds from Chiadzwa field where the army has been accused of rights abuses against civilians.

International rights groups have been pushing for a world ban on Zimbabwe diamonds until Harare acts to ensure mining at Chiadzwa is in full compliance with KP standards.

The southern African nation however escaped a KP ban last November but the global body gave Harare a June 2010 deadline to make reforms to comply with its regulations.

Meanwhile a ZMDC official refused to disclose to the parliamentary committee the names of members of Mbada Investments board.

Little is known of the diamond miner except that its chairman Robert Mhlanga has strong links to Zimbabwe’s military establishment that is accused of accused of stealing millions of dollars worth of diamonds from Chiadzwa and offloading them onto the foreign black market for precious stones.

By Zimonline

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