The Zimbabwe government has restarted the issuing of licences to diamond cutting and polishing companies, which was halted late last year, following the suspension of more than 30 companies over allegations they were not doing any value addition, but selling rough gems.
Mines and Mining Development deputy minister Gift Chimanikire said only companies with proof that they had bank balances of more than $100 000 were being relicensed to weed out opportunists who did not have the financial wherewithal and plant capacities to support their operations.
“We have since lifted the suspension of diamond cutters and polishers.
Some have already acquired licences; these have proved that they have the required machinery to cut and polish diamonds and that their premises have the required security systems in place.”
The licensing process was resumed after the conclusion of two months of spot inspections of the registered traders by the Ministry and the Minerals Marketing Corporation of Zimbabwe, which handled the initial rough diamond sales to the local cutting and polishing firms.
The Ministry, which expected the sector to contribute at least 15% of this year’s gross domestic product, was contemplating revising upwards, to 80%, the requirement that 10% of precious mineral products be channelled to locals for value addition to guard against the export of raw materials and to create more jobs locally.
Meanwhile, Chimanikire said the Zimbabwe government had completed the drafting of the country’s proposed diamonds legislation.
The Diamond Bill seeks to replace the Precious Stones Trade Act, which has been in force since the discovery of the country’s first diamonds in 1903.
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Besides other aims, the new legislation seeks to ensure the country is seen as a safe destination for diamond miners to promote accountability and to ensure that the country’s diamond valuation and marketing processes meet international standards.
“We are almost through and the Diamond Bill is ready for presentation to the Cabinet legal committee.
However, before we make any submissions, there will be a need to amend the Precious Minerals Act and incorporate it into the diamond policy. We will then present it to Cabinet and, thereafter, to Parliament,” Chimanikire says.
The Diamond Bill, if it becomes law, will restore sanity in the diamond sector after widespread international concerns over allegations linking the exploitation of Marange diamonds to human rights abuses and allay suspicions that gems were largely supplied to illegal diamond cartels.
The government also hopes to use the policy to convince the Kimberely Process Certification System that it is serious about monitoring the extraction and trading of its new-found diamond wealth.
