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KP in vicious circle over Zim diamonds, Mpofu threats not new

29 november 2010

As the stalemate in the negotiations between the Kimberley Process and Zimbabwe regarding the export of rough diamonds from the conflict Marange area continued after the special meeting of the KP working group recently held in Brussels produced a near zero result it was still unclear whether this country is really going to unload its diamond coffers on the eager regional markets, first of all in India.

Although Zimbabwe scoffed at the opportunity offered by Brussels, the meeting participants were citing some progress towards a final accord, which may mean that the negotiating process led by KP chair Boaz Hirsch is drawing strength from a hope to find a solution to eat cake and have it.

Reports say countries that were opposed to Zimbabwe’s bid to resume full diamond exports included the U.S., Canada and Australia while African, South American and Asian countries were in support of the southern African nation.

At the preceding Jerusalem venue the KP chairman said that Zimbabwe should wait until it receives certification to export its diamonds.

However, a defiant Zimbabwe mines minister Obert Mpofu disagreed with the KP chair, as he told the same journalists that the country would immediately resume exports.

"These are our God-given resources and we will do with them what we feel is best for our people,” Mpofu said. "Zimbabwe will sell diamonds without any conditions. There is no opposition to that."

The confident Zimbabwe mines minister had told the world prior to the Jerusalem meeting that his country would recommence diamond exports from Marange “within days” as it had “fully” met the standards required by KP.

"We have done everything in our power to meet the minimum standards of the Kimberley Process certification scheme," Mpofu was quoted as saying by Reuters.

"This puts us in a position to resume exports without sanctions. We will start selling diamonds again immediately after the meeting."

He said Zimbabwe had a diamond stockpile of about 4.5 million carats that were due for export, adding that "we can't continue to hold them with no reason".

It is yet unclear whether the stubborn southern African nation would start selling its gems anytime soon, but for those that had been closely following this saga, they can safely conclude that Zimbabwe will not carry out its threats.

Similar threats that were made by Zimbabwe President Robert Mugabe last February, after KP gave the country time until June to prove the Marange field was being properly run, were not executed.

“We can sell our diamonds our own way," Mugabe said. “…we are trying to play their way, but we could go outside that KP system and do it otherwise.” 

South Africa’s Abbey Chikane who was tasked to see if the country was adhering to the guidelines, made two separate visits to Zimbabwe.

After his assessments, he recommended that the country be allowed to export its diamonds as it had met the minimum requirements spelt out by the trade body.

However, when KP met in Tel Aviv last June the trade body failed to reach a consensus on whether Zimbabwe met its minimum standards and should be allowed to start trading its gems.

"There (were) no winners with this result. But by maintaining a ban on exports in the absence of significant improvements in Marange, the Kimberley Process has taken an important step towards restoring its battered credibility,” said Global Witness’ Elly Harrowell in a statement just after the Tel Aviv meeting declared the impasse.

So with the stalemate, it was reported that KP would try and resolve the issue in St Petersburg, Russia, where a World Diamond Congress was convened in July.

The St Petersburg meeting resulted in the southern African-nation being allowed to export a limited number of its diamonds from Marange.

Zimbabwe embraced the decision and successfully conducted two diamond auctions between August and September.

Even though the country conducted these two auctions it still had to leap over another hurdle, as it had been agreed in Russia that further exports by Harare would be contingent on measurable improvements in the diamond fields.

This saw KP dispatching its review mission to assess the situation in the diamond fields.

However, media reports indicated last October that the monitors were divided over Zimbabwe’s compliance with the scheme’s standards.

KP monitors, especially from Western countries alleged that their attempts to study conditions in the diamond fields were frustrated by government security personnel, showing Zimbabwe had something to “hide”.

They said security officials protecting the diamond fields “continued” to perpetrate gross human rights violations on villagers from the surrounding area, adding that smuggling was still taking place.

However, KP monitors from Africa rubbished these reports saying all was well in the diamond fields.

So, with members deeply divided over Zimbabwe, there was no way the country could have felt confident that the November meeting would see the trade body showing it a green-light to resume full diamond exports.

What emerged from the meeting was widely expected, rather it was a repeat of what took place in Tel-Aviv last June and it will likely take another meeting similar to the one convened in St Petersburg to unlock the gridlock.

The Kimberley Process working group’s Brussels meeting was compromised by KP monitor Abbey Chikane who certified four million carats of Marange diamonds without being authorized to do so by KP. According to reports, this stock of rough was meant for Indian buyers who allegedly paid about $160 million to have it. Some sources say that since these goods are formally certified and paid they may find their way to India’s manufacturers.

Still, although Mpofu said Zimbabwe will start exporting its gems without the blessings of KP, it is highly unlikely that the country will take that route.

If the country wanted to take that route, it could have done so way back, and the reason that they chose this path of waiting for a KP’s approval, shows that their threats was just a way of “blackmailing” the trade body into allowing Zimbabwe sell its diamonds.

What is wise - to allow the country trade its diamonds through official channels or to promote the so-called black-market?

This din should end.

Mathew Nyaungwa, Rough&Polished, from Namibia