Categories: Stories

Zimbabwe exports diamonds worth $361 million

Zimbabwe exported diamonds worth $361.1 million last year according to the central bank governor Gideon Gono. This was a drastic improvement from 2009 when it exported diamonds valued at $37.4 million.

The bulk of the diamonds were exported in December when the country shipped out diamonds valued at $188.9 million.

Zimbabwe has at least five operational diamonds mines, River Ranch in Beitbridge, Rio Tinto-owned Murowa in Zvishavane and thee mines, Mbada, Marange and Chinese-owned Ainjin in Marange.

Only River Ranch and Murowa are allowed to freely export their diamonds as they have Kimberley Process Certification Scheme clearance. All the diamonds in Marange are still considered “blood diamonds” and are awaiting KP approval.

Outgoing KP chairman Boaz Hirsch of Israel presented a panel-beaten agreement which would have allowed the Marange Mines to export their diamonds provided they met certain conditions, but this decision was reversed by new Chairman Mathieu Yamba Lapfa Lampang of the Democratic Republic of Congo.

Although Yamba had given Hirsch time to wind up the Zimbabwe issue three weeks into his term and Hirsch got written consent to allow Zimbabwe to sell its diamonds, Yamba wrote to the same members on February 4 saying one could not consider at this stage that consensus had been reached because some countries had expressed reservations on the draft.

Yamba said he had therefore launched discussions around the draft so that he could come up with something that would be acceptable to all and would ensure Zimbabwe resumed exports.

While this appeared to be a reversal of the previous ruling which would have allowed Zimbabwe to export its diamonds and also release thousands of diamonds that are locked up in warehouses, Yamba’s action is reported to have the blessing of Zimbabwe.

Reports say Zimbabwe does not want to sell its diamonds under any restrictive conditions like ensuring that the Marange area is violence free. It wants an unconditional agreement to sell its diamonds.

But those in the diamond industry are worried that Zimbabwe is taking this route so that it can continue to smuggle its diamonds out and sell them to the public. It makes more money this way and no one knows how many diamonds it is selling.

Right now revenue from diamonds estimated at $100 million is reportedly missing.

Zimbabwe’s diamond reserves will make it one of the world’s leading producers and cutters from Surat had hoped that Marange could come to their rescue. It was expected to create some 250 000 jobs in Surat alone if it received an adequate supply of diamonds from Marange.

(22 VIEWS)

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024

The Zimbabwe government and not saboteurs sabotaging ZiG

The Zimbabwe government’s insatiable demand for money to satisfy its own needs, which has exceeded…

October 20, 2024

The Zimbabwe Gold will regain its value if the government does this…

Economist Eddie Cross says the Zimbabwe Gold (ZiG) will regain its value if the government…

October 16, 2024

Is Harare the least democratic province in Zimbabwe?

Zimbabwe’s capital, Harare, which is a metropolitan province, is the least democratic province in the…

October 11, 2024

Zimbabweans against extension of presidential term in office

Nearly 80% of Zimbabweans are against the extension of the president’s term in office, according…

October 11, 2024

Zimbabwe government biggest loser when there is a discrepancy in the exchange rate

The government is the biggest loser when there is a discrepancy between the official exchange…

October 10, 2024