President clarifies Chiadzwa restructuring

06 Mar, 2016 - 00:03 0 Views
President clarifies Chiadzwa restructuring President R G Mugabe

The Sunday Mail

Kuda Bwititi
Chief Reporter
Zimbabwe is cleaning up operations at the Chiadzwa diamond fields to tap into more of the billions of dollars generated there for the good of the citizenry, President Mugabe has said.
In an interview with ZBC TV last week to mark his 92nd birthday, the Head of State and Government said there had been a lot of secrecy surrounding diamond mining and this would end.
About a fortnight ago, Government ordered companies mining in the fields to clear the way for consolidated operations that give central authorities greater control.
Conservative estimates put proceeds accrued to the State since the miners were licensed at roughly US$2 billion.
Though Mbada Diamonds and Anjin Investments are contesting their expulsion in court, anti-Zimbabwe lobbyists have taken to reporting negatively on the entire matter to poison the Kimberley Process Certification Scheme’s view on gems from the country in a manner reminiscent to attempts a few years ago to blacklist those diamonds.
Those attempts look set to fail, with a KPCS expert telling The Sunday Mail last week that the world’s largest diamond trade regulator was supportive of the clean-up.
And President Mugabe explained that the clean-up was legally structured and designed to give greater benefits to citizens.
“We have not received much from the diamond industry at all. Not much by way of earnings. I don’t think we have exceeded US$2 billion or so, no and yet we think that well over US$15 billion or so have been earned in that area.
“So, where have our carats been going, the gems? There has been quite a lot of secrecy in handling them and we have been blinded ourselves, that means our people whom we expected to be our eyes and ears have not been able to hear or see what was going on.
“A lot of swindling and smuggling has taken place, and the companies that have been mining, virtually, I want to say robbed us of our wealth.”
The President said the State was left with no choice but to monopolise diamond mining.
“That is why we have decided that this area should be a monopoly area and only the State should be able to do the mining in that area. You cannot trust private companies in that area, none at all.
“And we should have learnt from the experiences of countries like Botswana, Angola, Namibia, etc. We might partner with a leading diamond company, which is already well-established. Fine; we may be able to do that, but on good terms.
“Botswana was telling us their deal, that is President (Ian) Khama, that they work with De Beers and they have had to demand that they get more than 70 percent of the earnings that are made by De Beers because they reckon that over the years, De Beers has been having a lion’s share of their diamond wealth and this is what we are trying to do now: Start afresh.
“After all, the real kimberlite mining has not been done. It was all alluvial so far, just doing the sands, the loose earth and the conglomerate, of course, cutting the stones through and then getting whatever carats. That is what the Chinese company, Anjin, was doing.”
Civil Society Coalition of Zimbabwe secretary-general Mr Joshua Marufu supported consolidating diamond operations in Chiadzwa.
“As civil society, we have been pushing for transparency under the Zimbabwe Mining Review Transparency Initiative adopted by Cabinet. We have been pushing for transparency in the diamond sector under the ‘Publish what you pay campaign’ that we are running,” said Mr Marufu who is also an African Diamond Producers Association member.
“Through these initiatives, we have advocated consolidation of diamond mining companies in Marange because this is the best route to transparency. So, we are very happy that Government has implemented what we have been advocating all this time.” A Kimberly Process expert who preferred anonymity added: “Contrary to some views that are being peddled, the consolidation being undertaken by Government will not in any way affect its relations with the KP.
“Zimbabwe remains KP compliant because it has met and even exceeded the KP standards in terms of security. The issue of shareholding, therefore, is irrelevant once it comes to our relations with the KP.”

Share This:

Survey


We value your opinion! Take a moment to complete our survey

This will close in 20 seconds