Zimbabwe’s Marange diamond fields that stretches for about 120 000 square kilometers are touted by some as a major discovery in recent years that carries 25 percent of the world’s gems.
Marange was also projected to satisfy 30 percent of world diamond demand by 2015, but skeptics do not agree with these statistics and relevance attached to the diamond fields.
Despite this debate, there had been some marked interest (according to official statements) by some Western and African companies to invest in Marange.
Perhaps, guided by the strong appetite and need to benefit from the diamond deposits, Zimbabwe recently increased its exploration fees by astronomical rates, something that raised the ire of potential investors, especially locals.
The country’s deputy Mines Minister Gift Chimanikare - who gave an interview to our African Bureau Editor-In-Chief Mathew Nyaungwa who was in Zimbabwe recently - said the new diamond exploration fees were here to stay.
Chimanikire also refused to answer questions on production and sales figures, preferring to discuss “less sensitive” issues.
Rough&Polished has, however, established that Zimbabwe was unwilling to release the production and trade figures in fear of reprisals from countries that have imposed sanctions on companies operating in Marange for allegedly funding the oppressive political machinery of President Robert Mugabe’s party.
Zimbabwe recently increased diamond exploration fees to $1 million and some critics said this was not feasible. Do you agree with that?
I do not agree with the sentiments that $1 million fee is not feasible, especially for Marange diamond fields.
Marange diamond fields is alluvial and there is an abundance of diamonds on surface that does not need any sophisticated exploration but simple recovery just like what the villagers did in 2006 and 2007.
Considering the low investment levels and the high diamond prices prevailing on the world market, exploration fee of $1 million is feasible.
The United States recently slapped sanctions on two of the diamond firms operating in Marange despite the country being the chair of KP, which gave the miners a green-light to export their gems. What is your reaction on this development?
This is obviously sad as it runs contrary to the latter and spirit of the Kimberley Process Certification Scheme and the agreements on Zimbabwe diamonds reached in Kinshasha – Democratic republic of Congo in November 2011.
There were reports last year that Zimbabwe was losing a lot of diamond revenue through smuggling. What measures have been taken to plug the leakages?
Those reports are based on speculation and we cannot respond to speculation. All the companies operating in Marange have put up a high level of security as this was part of the investment criteria given to them by the government.
What were the country’s diamond output and sales figures in 2011, as well as your projected output this year?
I cannot comment on that.
Why?
I have no knowledge of this and therefore I cannot comment.
The mines ministry was quoted by local media as saying that the government will not grant mining concessions to small scale miners in Marange. If true, what prompted this decision?
The Marange diamond area is predominantly an alluvial deposit. The diamonds are on surface and extracting the diamonds is simple. For that reason the security of the diamond is a major challenge.
The companies already mining at Marange had first to install high security at a major cost. Small scale miners will find this to be a challenge.
Finally it is easier to manage and securitise a smaller number of people/companies than large numbers and once small scale miners are allowed, the issues of numbers will be difficult to manage.
What is the state of diamond manufacturing in the country?
In 2011 the government licenced 28 firms to cut and polish diamonds. [We also licenced] four firms from January 2012 to date.
There is legislation in place establishing a quarter system for local diamond manufacturing. This is meant to guarantee supply of diamonds to the factories.
Is it a government policy that all alluvial diamond operations in the country should be nationalised?
[The] government policy on alluvial diamonds is that they should be mined by government or by government together with its joint venture partners.
Dubai-based Rani Investment is said to be negotiating with the Zimbabwe government on the possible sell of its shareholding in Limpopo Mining Resources through which it owns the River Ranch Diamond Mine. Can you confirm this report?
We have only read this in the local press and beyond this I have no knowledge of these discussions.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
