Reports early this month that Zimbabwe was set to conduct up to two diamond auctions in Antwerp, Belgium, before it convene its own domestic exchange in November, came as a surprise to many.
It was astonishing in the sense that Harare had earlier in the year said that its stones attracted poor prices in Antwerp compared to Dubai.
Zimbabwe conducted its second Antwerp auction last February, which officials said attracted an average price of $72 per carat compared to $76 per carat recorded in Dubai thereafter.
However, Antwerp World Diamond Centre (AWDC) chief executive Ari Epstein disputed the claim as he said the February auction attracted an average price of about $80 per carat.
He said despite the ‘superior’ Antwerp prices not all the goods sold were optimally cleaned and sorted.
Epstein further claimed in an interview with Rough & Polished, at the time, that one company even tendered goods that were of very poor quality and not representative for its production footprint.
However, Zimbabwe’s mines minister Walter Chidhakwa – reacting to the AWDC boss’ comments – said that the figures his ministry gave were accurate.
“I really do not know what he (Epstein) is talking about. We still stand by the report that we issued after the auction that the diamonds were sold at $72 per carat,” he told the weekly Sunday Mail.
“What we know is that they (Antwerp) want to prove that they are better than Dubai. They should do so in a better way.”
Zimbabwean President Robert Mugabe also added his voice in this mud-slinging.
“Here (Dubai) we have the same Third World people with sympathies for us. Together, we are part of the KPC process. You do not have the evil heart of Europe,” he said in reference to the Dubai Diamond Exchange centre and its leadership during a visit last April.
“We want to be partners in trade. We want partners who regard us as human beings, partners who share our misfortunes and appreciate that we want to develop also in the same way that we appreciate their own development.
“Together with you, we want to enhance the Dubai process of selling diamonds… I am sure we are going to be a big diamond mining country. And so with Dubai, a Dubai that is appreciative of us, we can conduct bigger diamond auctions. Yes, we also want to conduct diamond auctions back home, but it’s Dubai for now.”
Earlier, in the year, Mbada Diamonds, one of the leading gem producers in Marange, had said the Zimbabwean government should stop the auctioning of diamonds in Antwerp.
The Source quoted the company chairperson Robert Mhlanga as saying that the selling of diamonds in Antwerp was costly and rewarded Zimbabwe’s European Union foes.
“I have strong reservations about Antwerp because they are our yesteryear enemies. We have actually reeled under sanctions, thanks to Brussels and for us now because they have claimed to have lifted sanctions and we run to them. Personally, I have my own reservations,” he said while addressing a parliamentary committee last March.
“…I don’t believe in appeasing a foe.”
We told you so
Against this background, reports that South Africa’s Amari Platinum almost received about $45 million worth of diamond revenue belonging to companies with Zimbabwean state shareholding, was probably received with an “we told you so” remark fr om Mugabe and Mhlanga.
The conflict stems to 2010 when the Zimbabwean government cancelled Amari’s joint venture with the Zimbabwe Mining Development Corporation because Amari prolonged exploration in Great Dyke beyond the stipulated duration.
When Amari applied for a mining licence, Harare claimed the exploration was undertaken unlawfully.
By 2011 ZMDC was to take over and start mining on its own.
Peeved by this development, Amari addressed the Paris-based International Court of Appeal with a $500 million suit, which recently decided that the platinum miner should be compensated.
However, this decision was reversed by authorities in Belgium, according to Zimbabwe’s Sunday Mail.
The relief was temporary though, as it emerged that a group of dispossessed white farmers from Zimbabwe are also laying claim to the $45 million worth of diamond revenue.
The Dutch farmers appealed to the European Court for them to be allowed to take the money.
An unnamed official with one of the diamond companies was quoted as saying: “the reality is that it is a disaster. We are now wondering why we even came here.”
This, no doubt, sums up what is going through the minds of the diamond miners and some government officials.
Yes, Antwerp fought hard to get wh ere there are now.
“I made a commitment to the [then] minister of mines (former minister, Obert Mpofu) to help lift sanctions on Zimbabwe Mining Development Corporation and I worked extremely hard to keep these promises,” said AWDC chief executive Ari Epstein early this year in Harare.
“The export of Marange diamonds were resumed, unfortunately not to Antwerp but to the rest of the world. Why, when the sanctions are lifted are you imposing sanctions on yourselves?”
However, following the latest debacle, it is safe to say that Antwerp should just kiss goodbye to hosting Marange diamond tenders again.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
