Business / Economy
Diamond Bourses hope next weeks' KP meeting will ok Marange diamond sales
19 Jun 2011 at 07:24hrs | Views
The Marange Diamond Mine is one of largest diamond mines discovered in the last 10 years. However, the mine has been at the center of controversy because of allegations of human rights violations perpetrated by the Zimbabwean military at the behest of President Robert Mugabe. This week, Avi Paz, the president of the World Federation of Diamond Bourses expressed his hope that the Kimberly Process meeting to take place in the Congo next week would allow Marange diamonds to be sold on the market.
In the late 1970s, the Marange field was discovered by a company linked to De Beers. The company never made use of the mine and in 2006 gave it up to the African Consolidated Resources. In 2006, the military seized the Marange field, evicted tens of thousands of miners and then forced those evicted civilians to work the mines under threats of violence.
The reports of human rights violations increased and the Kimberly Process began investigating the situation. Upon announcing its findings, the Kimberly Process immediately banned the import, export and sale of all Zimbabwean diamonds from 2007 to 2009. The Zimbabwean government consistently disputed reports, although it refused to allow any outsiders into the region or provided proof to the contrary.
In 2009, the Kimberly Process allowed Marange diamonds to be sold on the market in two special sales, although they recommended that any diamonds coming from the region be thoroughly investigated as to ascertain their origins. Since then, there have been no other sales of Zimbabwean diamonds.
In May, Paz said that there were major obstacles linked to indecision that would likely cause "irreparable damage" to the diamond industry if Zimbabwe's diamonds were not allowed to enter the market. At that time, he also exhorted the Mugabe regime to step up to the plate and meet the standards the KP has established so that both the country and the diamond industry can benefit from the country's natural resources.
On Friday, Paz's comments indicated a change in the situation. According to World Diamond Council President Eli Izhakoff, the Kimberly Process had been successful in changing Zimbabwe's attitudes toward miners and the only barrier was a "procedural matter." Paz echoed these statements, although he still instructed the diamond industry to follow KP protocols and not trade Marange rough diamonds until a final decision is reached next week.
In the late 1970s, the Marange field was discovered by a company linked to De Beers. The company never made use of the mine and in 2006 gave it up to the African Consolidated Resources. In 2006, the military seized the Marange field, evicted tens of thousands of miners and then forced those evicted civilians to work the mines under threats of violence.
The reports of human rights violations increased and the Kimberly Process began investigating the situation. Upon announcing its findings, the Kimberly Process immediately banned the import, export and sale of all Zimbabwean diamonds from 2007 to 2009. The Zimbabwean government consistently disputed reports, although it refused to allow any outsiders into the region or provided proof to the contrary.
In May, Paz said that there were major obstacles linked to indecision that would likely cause "irreparable damage" to the diamond industry if Zimbabwe's diamonds were not allowed to enter the market. At that time, he also exhorted the Mugabe regime to step up to the plate and meet the standards the KP has established so that both the country and the diamond industry can benefit from the country's natural resources.
On Friday, Paz's comments indicated a change in the situation. According to World Diamond Council President Eli Izhakoff, the Kimberly Process had been successful in changing Zimbabwe's attitudes toward miners and the only barrier was a "procedural matter." Paz echoed these statements, although he still instructed the diamond industry to follow KP protocols and not trade Marange rough diamonds until a final decision is reached next week.
Source - Diamondpriceguide
