Abbey Chikane’s KP Zimbabwe Report Lists Suggestions for All Players

May 3, 2010 - PRLog -- which 1,634,941 carats were sold. The figures relate to the production and sales figured for Marange Resources, Mbada, Canadile, Minerals Marketing Corporation of Zimbabwe and African Consolidated Resources. Chikane explains that Marange Resources only started selling diamonds in October 2008.



The report by Chikane, the Kimberley Process-appointed monitor to Zimbabwe who was sent there to assess whether the country was implementing Kimberley Process directives in the Chiadzwa diamonds mines, lists a number of challenges and recommendations relating to Zimbabwe's compliance with the Kimberley Process.



Recommendations Pertaining to Management of the Marange Diamond Field by Government and Stakeholders



The report found that while Zimbabwe's government agencies have recently deployed civil servants to monitor and report on diamond production, exports and imports, the majority of the personnel are inadequately trained. Individuals serving as monitors must receive ongoing, onsite training focused on audit processes and procedures, as well as on diamond sorting and valuation, recommends the report.



Chikane’s report also finds that too many government agencies were ‘involved in monitoring and handling rough diamonds, posing a danger to the integrity of the process’, and calls for existing legislation to be amended to reduce the risk of diamond swaps or losses.



While the report notes that the Zimbabwe Reserve Bank (ZRB) currently holds rough diamonds in safekeeping in case of legal disputes, it recommends that the ZRB should be allowed to keep rough diamonds only under extraordinary circumstances, and should otherwise be discouraged from handling rough diamonds.



As for the local diamond companies, the report says that both Mbada Diamonds and Canadile Miners are lacking adequate diamond audit systems, and have been unable to demonstrate that their sorting and valuation centers have no blind-spots.



General Observations



The report points out that the political and economic leadership in Zimbabwe face the challenge of ensuring that revenue generated from the sale of rough diamonds is used to reconstruct and develop the local economy in the interest of the people of Zimbabwe.



Chikane suggests that the Cabinet task force on Marange production should devise an economic strategy focused on developing the country's diamond mining as a significant source of revenue for the state.



Concerning the selection of joint venture partners operating in the Marange diamond fields, which has been widely criticized, the report notes, "The Ministry of Mines and Mining Development may want to consider a more transparent, credible and predictable system that will enable the ministry to select applicants for consideration. Such a system will ensure credibility and accountability in a more transparent and predictable manner."



The Ministry of Mines and Mining Development may want to consider releasing statistics on the royalties and company taxes paid to government, as well as on how the diamond industry is contributing to the national revenue, continues the report.



The report cites that “Experience has shown that illicit trade in Zimbabwe is most likely to spread to neighboring countries. There is need for regional cooperation as recommended by the Working Group on Monitoring and as foreseen in the joint work plan. Such cooperation may include internal monitoring controls, security, technology, and coaching and or training, designed to address specific challenges being faced by Zimbabwe in meeting the minimum requirements of the Kimberley Process Certification Scheme."



Chikane, who is scheduled to submit his final report on Zimbabwe's compliance with the Kimberley Process directives in November 2010, called for assembling a team of individuals to assist him in fulfilling his mandate. The list includes Thuli Magubane as project coordinator and diamond expert Jennifer Posthumus to consult on issues regarding diamond sorting, valuating and ethics.

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