One of Zimbabwe’s most vocal critics of the state of diamond mining in Marange, FaraiMaguwu, who is also the executive director of the Centre for Natural Resource Governance, said that while he is not armed with a “crystal ball” to foretell the future of diamond mining in Marange, he is of the view that this hinges on political developments in the country.
He told Rough &Polished’s Mathew Nyaungwa in an exclusive interview that it was a fact that alluvial diamond deposits had depleted on claims given to the current miners digging for stones in partnership with the Zimbabwe Mining Development Corporation (ZMDC), but there were some claims yet to be touched.
Maguwu said the current instability in Zimbabwe’s political sphere favoured corruption and illicit financial flows even if mining commences on the untouched claims.
He said although the country was not at war, most development indicators places it among countries at war or emerging from violent conflict due to the “looting” of national resources.
Maguwu also commented, inter alia, on the panned streamlining of operations in Marange and a move by Harare to impose a ban on diamond exports.
Zimbabwe recently announced plans to impose a moratorium on Marange diamond exports. What is your comment on this move?
The government has shot itself in the foot. The government’s decision is a reaction to the late payment from the second Dubai tender. Marange diamonds received better prices from the Antwerp market but the government decided to go with Dubai on a purely political basis.
In as much as Zimbabwe should be seen adding value to rough diamonds, do you think this is the right time to ban rough exports?
There is no right time to ban rough exports. The mining companies are already facing serious viability problems due to the depletion of alluvial diamonds in Marange. Stopping them from exporting rough diamonds will certainly be the final nail in the coffin for them. Zimbabwe should develop its diamond beneficiation industry while still exporting diamonds.
Does Zimbabwe have the capacity at the moment to beneficiate its rough?
Zimbabwe has over 20 local diamentaires some of which have been training staff for the past five years. While this capacity is limited, it is still under-utilised and receiving no technical or financial support from government.
Zimbabwe’s Manicaland Provincial Affairs minister Christopher Mushohwewas quoted by local media as saying that alluvial diamond reserves in Marange have not dwindled, contradicting what the mining companies said last year. Your assessment of the situation in Marange?
It is a fact that alluvial diamonds on the mining concessions granted to the diamond mining companies have dwindled. What is mainly left is diamond-bearing red conglomerate rock. There are also other concessions that have not been mined yet and are believed to hold alluvial diamonds.
Zimbabwe’s diamond output dropped 14 percent to 10.411 million carats in 2013 from 12 million carats in 2012, according to KP figures. What do you think caused this drop and could this give credence to fears of depleting diamond reserves in Marange?
The fall in production is quite significant and does point to the fact that alluvial diamond reserves have dwindled. Also recent retrenchment of workers at big mining companies such as Anjin Investments confirms the depletion of diamond reserves in Marange.
Why are miners in Marange complaining of lack of capital to mine conglomerates and kimberlites, when they have been generating revenue from their claims all these years? Does this speak volumes about the nature of firms operating in Marange?
It is a testament to the sort of partners that ZMDC (Zimbabwe Mining Development Corporation) chose. These companies have siphoned all the proceeds of their mining operations and as the Minister of Mines rightly said, they are “fly-by-night” operations. It’s time for real miners to stand up and be counted and sadly there is none in Marange at the moment.
The much-hyped streamlining of diamond operations in Marange is set to take longer than anticipated as Harare faces a legal hurdle in how to bring the firms together without violating their original contracts. What is your take on this development?
The government has been known to bull-doze its way when it comes to Marange diamonds regardless of ‘legal hurdles’ as attested by what happened to African Consolidated Resources. The real reason why there is a hiccup is because the beneficial owners of the firms are the same people who are supposed to have the political will to stream-line operations and they do not want that to happen.
Do you think the streamlining of operations in Marange will improve transparency and revenue as Harare claims?
Marangeshould not be seen in isolation to the rest of Zimbabwe. President Mugabe has shown no interest at all in combating corruption. He has amazingly rewarded very incompetent and corrupt ministers by retaining them in their posts or simply recycling them. In short, there is no political will to hold government officials accountable. Thus, whatever creature they will create to replace the current firms will continue to sing the ‘it’s our time to eat’ chorus. Until and unless there is political will to hold public officials to account, nothing will come out of the purported streamlining.
What is the future of diamond mining in Marange, in particular and Zimbabwe, in general?
While I do not have a crystal ball to foretell the future, the future of diamond mining in Zimbabwe is tied to Zimbabwe’s political future which is also tied to the ongoing succession drama in ZANU PF and the chaos rocking the opposition politics in Zimbabwe. The current instability in Zimbabwe’s political sphere favors corruption and illicit financial flows. Though the country is not at war, most development indicators places it among countries at war or emerging from violent conflict. The generals and politicians looting national resources, diamonds included, are no different from people like Jonas Savimbi, Charles Taylor and Mobutu SeseSeko, since they use the proceeds to finance repression and brutality, maintain the status quo, tighten their grip on power and sustain a vicious cycle of poverty and misery in order to control the population. In such a scenario, diamonds are a curse to the nation since they are funding poverty and national decay. So yes, diamond dealers will continue to buy Marange diamonds, those in power will deposit their ill-gotten cash in tax havens whilst Zimbabwe continue to suffer a perennial liquidity crunch. If they deposited their stolen money in local banks we would still be angry but at least say well, Zimbabweans can still access loans and grow the economy, howbeit by borrowing the ill-gotten wealth from local banks. But alas, that is not the case.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
