Transparency International Zimbabwe

The raging dispute and conflict over diamond mining in Zimbabwe has brought instability not only in the mining sector but on all economic and investment interests in the country. Issues ranging from the sanctioning of undeserving firms to explore diamonds at Chiadzwa Diamond Fields to the unsolicited confiscation of gems from initial explorers have made headlines in the 2009-2010 economic year. Since the formal allocation of a legal diamond mining license for mining at Chiadzwa Diamond fields, concerns have been raised with regards to the capacity of the licensed miners to explore the mineral in the media and business society. A lot of questions have also been tabled about the criteria used to grant tenders for exploration to these firms. Deafening noise has been made about the involvement of government officials in influencing decisions to allow particular firms to commence mining at Chiadzwa.

Furthermore, the alleged looting of the precious stone by government officials has also been an issue in the media and mining industry respectively. However, the recent order by the Supreme Court of Zimbabwe for mining to be halted at Chiadzwa emerges as yet another unexpected development to the seemingly clearing smokescreen on diamond mining in Zimbabwe drawing various stakeholders back to the drawing table again. The aggressive and conspicuous nature in which the issue of diamonds is being deliberated in Zimbabwe is reflective of the obese stake that lies in securing the lease to excavate the mineral. The row over ownership of mining claims, granting of mining contracts or even auctioning of stones could long have been a resolved issue if the mining business did not carry much incentive as it does. The government, as the major custodians of the nation’s minerals has slackened and delayed action in putting measures to establish diamond mining as a legally protected and transparent mining venture in the country. This has created a lee-way for the illegal siphoning of the jewel by persons of higher authority who has access to these, thereby depriving the nation of the much needed revenue that is generated through diamond sales. This is evidenced by the disparity in the amount of diamonds exploited from the fields to date and the revenue that has been received by the revenue authorities from diamond sales so far. The government of Zimbabwe is seen to be playing a central part in the mystification surrounding diamond mining. The concessions that the Zimbabwe Mining Development Cooperation, a state owned company responsible for mining investment in the country, has engaged with other foreign and local investors in mining diamonds have not yielded any tangible and progressive results, notwithstanding the continued mining taking place at Chiadzwa. It now stands to be established whether the stalling in the process of diamond mining development is a deliberate move to allow for the continued robbing of the nation’s mineral resources by persons in positions of authority or the instigation of the drive to overhaul foreign investors from diamond mining making way for indigenous business concerns, a move wholly advocated for through the newly gazzetted Indigenous and Economic Empowerment act.

The economic usefulness of diamonds in Zimbabwe is less likely to be realized in the short term for as long as the wrangle for diamond is not quenched. Whilst the government, through the Mines Minister holds that diamond mining should go through a phase of inquiry, grabbing and snatching, the nation will not have that as an excuse for failure to execute required statutory and governance issues encompassing the mining and trade of diamonds in the country. This uncertainty has been fostered at the expense of the citizens of this country and shows lack of accountability of the authorities handling matters of mining and investment in the country. The same is likely to ensue with the platinum mining claims that have been ceded by Zimplats that are being pursued by local and foreign investors simultaneously. Lying at the background of these developments are government’s efforts to ensure security of the gems and to avoid their illegal exploitation by the infamous “gwejas”. The government has also made efforts to register diamond mining in the country with the Kimberley Process, an international accreditation that would make the nation’s diamonds recognizable and free to international trade. However, it has to be mentioned that although the government has capacitated areas littered with diamonds in terms of security, illegal exploitation has not been curtailed. Being part of the Kimberley process would also guarantee the nations diamonds from being classified as conflict or blood diamonds, given the nature of exploitation that has taken place before and after legal coordinated mining commences.