Zimbabwe recently reported the discovery of four kimberlitic pipes “rich in diamonds” in the remote area of Bikita.
Until the discovery of Bikita kimberlites, Zimbabwe had only two kimberlite diamond mines. These are Rio Tinto’s 78 percent-owned Murowa Diamonds in Zvishavane and Limpopo Resources (formerly River Ranch) in Beitbridge. Diamonds in Marange are alluvial.
Disturbingly, the state-owned media reported last month that a consortium of Chinese and Zimbabwean firms registered as Nan Jiang Africa Resources has started exploiting the gems, build offices and houses for its employees without receiving a go ahead from the Ministry of Mines and Mining Development.
Other reports also claimed that Bayrich Enterprises, a Harare based mining company is making efforts to engage South African partners to fund its mining operations in the area.
Livid villagers and former liberation fighters in Bikita have since asked mines minister Obert Mpofu to ensure transparency in the allocation of mining licences in the area.
He primised to cordon-off the area but it was not known whether this move will affect Nan Jiang Africa Resources or Bayrich Enterprises (if they are separate companies).
Zimbabwe’s Center for Natural Resource Governance director Farai Maguwu told our African Bureau Editor in Chief, Mathew Nyaungwa that Zimbabwe's relationship with China can yield meaningful results if mining deals between the two countries are done in a transparent manner and for national interests. He alleged that China's activities in Zimbabwe's diamond sector have been “highly clandestine, exploitative and retrogressive”.
Recent media reports alleged that a consortium of Chinese and Zimbabwean firms registered as Nan Jiang Africa Resources is mining diamonds in Bikita without a license. What is your comment on this development?
In the absence of strong institutions that guarantee a prudent, transparent and accountable investor identification procedure, the extractive sector will remain chaotic and unstable. The developments in Bikita are a continuation of the chaos of Marange. First and foremost, Zimbabwe needs the political will to do things right, especially where it pertains to awarding of mining licenses.
The government said it was baffled by the company’s move to set up structures, among them offices and a milling plant before even submitting an application for a mining license. However, no action has been taken against the company to date. What is your take on this?
It is criminal for government to acknowledge that the company is violating our laws and yet no action is being taken to correct the situation. Where in the world can a foreign company start recruiting workers, setting up a plant and building staff houses before acquiring a license to operate? In my view this Chinese company is working in cahoots with some political elites who will claim the 51 percent equity reserved for indigenous Zimbabweans. It's all about greed and self aggrandizement.
Do you know who is behind this company?
It's hard to tell.
What does this tell about the activities of the Chinese in Zimbabwe’s diamond industry?
China's activities in Zimbabwe's diamond sector have been highly clandestine, exploitative and retrogressive. But the real problem is not with China. The Zimbabwe government has no strategy of constructive engagement with China. Zimbabwe's relationship with China can yield meaningful results if mining deals between the two countries are done in a transparent manner and for national interests. However it appears Zimbabwe's political elites negotiate personal deals with China using national resources. Such deals benefit China and the few corrupt individuals from Zimbabwe involved.
Four kimberlitic pipes “rich in diamonds” were reportedly discovered in the area. What sort of an impact will this have on the overall diamond output in the country?
In terms of volume of production there will be an increase in output. However this will not translate into increased revenue flows. If the mining contracts are bad the revenues will be difficult to access.
Police recently arrested several illegal miners in Bikita. How best can the Zimbabwean government thwart a diamond rush in the area?
As long as the economy can't provide decent jobs the problem of artisanal mining will continue. Government ought to regulate the work of artisanal miners rather than unleash violence on them. Regulating the work of artisanal miners has several benefits. First, it removes the negative tag of human rights abuses from the diamonds. This will also increase the appeal and value of Zimbabwe's diamonds. Secondly, if the work of artisanal miners is regulated it means they will sell their products to the government, meaning government won't lose much revenue to illicit deals. Finally diamonds will contribute to poverty reduction as the miners will be earning something for a living.
Any update on diamond mining in Chimanimani by DTZ OZGEO, which is a joint venture between the Development Trust of Zimbabwe and Russia's OZGEO?
The Russians acquired a Special Grant to explore and mine diamonds at Charleshood estate. Whilst the company is now in full production, its operations remain out of the limelight as too much attention is on Marange. The fact of the matter is DTZ OZGEO is mining. I do not know whether they have carried a diamond auction so far.
What is your comment on Belgium’s recent calls for the EU to lift sanctions on diamond companies operating in Marange?
The call was not out of sympathy with Zimbabwe; rather it was motivated by the business interests of Antwerp, the largest diamond centre in the world with an annual turnover of $54 billion. At the moment Belgium can't officially import Marange diamonds due to sanctions, hence the call to have them lifted. Again the problem is not about Belgium buying Marange diamonds. Even if Belgium does not buy Marange diamonds, Zimbabwe will never run short of buyers. What is important is for Zimbabwe to develop a strategy of how to make the most of her diamond revenues and turn the Marange tragedy into a success story.
Are the sanctions hindering Marange diamonds from being sold?
Yes, sanctions are hindering Marange diamonds from legally entering US and EU markets. But Zimbabwe has not stockpiled any diamonds due to shortage of markets. All diamonds from Zimbabwe have a ready market in India and other countries in the East. However, the sanctions argument has been used to justify corruption and give all sorts of reasons why diamond revenues are not being properly accounted for.
Are there still leakages being reported in Marange?
Artisanal mining is continuing in Marange, though at a lesser scale.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
