Zimbabwe: No one monitoring airlifting of Chiadzwa diamonds

Summary & Comment: The controversy surrounding the diamonds from
Chiadzwa continues with reports that with an air strip now constructed
at the site no one can veryfy what is being taken away. M.Makoni.

http://www.zimonline.co.za/Article.aspx?ArticleId=566

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 pro duced 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 evaluat! ion. 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 c! ountry.
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 t! he 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.