The Sunday Mail
Last year, Zimbabwe assumed the chairmanship of the Kimberley Process Certification Scheme (KPCS) at a time when the country is pursuing an ambitious plan to grow the mining sector to US$12 billion by the end of this year. Our reporter DEBRA MATABVU (DM) spoke to Mines and Mining Development Minister Winston Chitando (WC) on developments in the mining sector thus far.
***************
DM: Congratulations on assuming the chairmanship of the KPCS. What does it mean for Zimbabwe and the local diamond sector?
WC: The KPCS is a global body created under the United Nations General Assembly Resolution 55/56.
It is responsible for the eradication of conflict diamonds from the global trade in diamonds.
The assumption of the chairmanship is a positive step and a vote of confidence in the Zimbabwe mining industry.
The diamond market is sensitive to the perceptions of the origins of the mineral, and, as such, Zimbabwe will benefit through a positive market perception of our diamonds.
Leading the KPCS presents an opportunity for the country to have an impact on the global diamond market.
The diamond sector in Zimbabwe will grow significantly from the opportunities the chairmanship of the KPCS will present to the country.
The attainment of a US$1 billion diamond sector economy is well on course, with the KP chairmanship definitely going to help in the attainment of the target.
DM: What are some of the issues that Zimbabwe will focus on during its tenure as KP chair?
WC: When Zimbabwe bid to be KP chair (2023), a number of key strategic areas were identified, presented and accepted by the world diamond community.
In preparation for the Zimbabwe chairmanship, the KP chair held a KP chairs strategic meeting from January 11-13, 2023 to map out the way forward in implementing these key areas of focus.
The key areas identified are: the KP Review Cycle, which is an important process of the KP that ensures the body remains relevant to current global trends affecting the diamonds industry.
The current KP Review Cycle coincides with Zimbabwe’s KP chairmanship.
It is an opportunity for the KP to reinvent itself by adopting new operational frameworks, thereby ensure the body remains relevant in today’s world.
As chair, Zimbabwe will push for success of the review cycle process, working with all KP participants.
The other key area is expansion of the definition of “conflict diamonds”.
The KP delivered on its initial mandate and commitment to removing conflict diamonds from the global supply chain.
Today, participants actively prevent 99,8 percent of worldwide trade.
However, some participants feel the definition of conflict diamonds, as given by the KP, has lost relevance. They are, therefore, seeking a review of the definition.
This work will be done through the review cycle committee and is of critical importance to diamond mining countries.
There is also the area of KP peer-review visits, which are part of the checks and balances the Kimberley Process uses to ensure that participants are compliant with the KP minimum requirements and to identify areas where participants need assistance from the body.
During the Covid-19 pandemic, KP review visits were suspended and many participants lapsed the five-year limit to have a peer-review visit.
With the easing of travel restrictions, all participants who are overdue will be encouraged to ask for peer-review visits through the Working Group on Monitoring.
The target is to have as many peer-review visits and missions as possible.
Zimbabwe successfully hosted a review visit in May 2022, being the first one carried out by the KP post-Covid era.
There is also FRAME 7 (Responsible diamond sourcing as best practice). Sustainable diamond sourcing is key to the positive development of economies that are involved in the diamond value chain.
FRAME 7 provides a framework that encourages responsible diamond sourcing from production to market.
It also links to the attainment of the UN 2030 Agenda for Sustainable Development and its 17 Sustainable Development Goals.
As such, adoption and implementation of these principles by all KP participants will be encouraged.
Another issue is strengthening the KP Tripartite in participant countries.
At the core of the KP, there are the three pillars working in a tripartite structure — Government, industry and civil society.
Zimbabwe, as the KP chair, will seek to encourage, as best practice, to have active tripartite structures in KP participant countries.
DM: How does assuming the chairmanship help with marketing and selling of the country’s diamonds?
WC: Zimbabwe’s chairmanship of the KP is an indicator of the progress that has been made by the country with respect to compliance with the KP minimum requirements. This, in turn, brings confidence to the diamond market on Zimbabwean diamonds, as well as the perceived valuation of our diamonds.
Chairing a global body committed to upholding the highest levels of compliance and responsible sourcing presents an unprecedented opportunity to the country to re-engage and project a positive image, showcasing the work and excellence in the Zimbabwe diamond industry.
DM: How will diamonds contribute to the attainment of a US$12 billion mining economy by 2023?
WC: The diamond sector is expected to contribute US$1 billion to the US$12 billion mining economy by 2023.
The three active diamond producers are on course to reaching seven million carats production by the end of 2023, and this will play a role in the attainment of the US$12 billion target from the increased production.
Zimbabwe diamond production is one of the fastest growing globally and this will push the attainment of the US$12 billion milestone.
DM: In brief, how well did the mining sector perform last year?
WC: In 2022, the mining industry attained US$5,4 billion in exports against a targeted projection of US$8 billion during that period. In comparison with the base year, 2017, wherein the mining sector’s annual revenue amounted to US$2,7 billion, the sector has demonstrated a 100 percent increase in terms of mineral exports.
DM: We have witnessed exponential growth of the sector over the past few years. How has this translated to job creation?
WC: Zimbabwe’s mining sector plays an important role in the socio-economic development of the country, particularly through employment creation.
The mining sector directly employed a total of 106 151 workers as at the end of 2022.
There has been a significant increase in the number of people employed in the sector from a baseline of 77 799 at the conception of National Development Strategy 1.
DM: Government recently promulgated regulations compelling mining companies extracting precious and high-value minerals to cede refined mineral products as part payment of royalties. Can you outline the thinking behind such an initiative?
WC: The new mining royalty rule will involve the payment of royalties for minerals being split as 50 percent cash and the other 50 percent in the form of the commodity itself.
The new policy targets four key minerals, namely, gold, diamonds, platinum group metals (PGMs) and lithium.
The policy will enable Zimbabwe to build reserves of the minerals, while still providing some cash for day-to-day operations.
Crafting of the policy is underway.
Twitter: @dmmatabvu
