Sanctions will not deter Zimbabwe - Mpofu

Government says sanctions on local diamond mining firms and western media propaganda will not deter the country from benefiting from its diamonds.

In an exclusive interview with Cable News Network (CNN) anchor, Robyn Curnow, Mines and Mining Development Minister, Dr. Obert Mpofu said despite the West's effort to cripple the economy through the placement of mining firms under sanctions, Zimbabwe will focus on trade with friendly countries on a win-win basis.

"The country's mining companies are on the sanctions list. Marange Resources, Mbada and ZMDC are all under sanctions. We will do business with friendly countries but if we start telling people who we have sold the diamonds to and at how much, then what do you expect to happen to our companies. They (West) will freeze their money and as I speak, ZMDC has its money frozen by the United States," said Dr Mpofu.

Dr. Mpofu who stressed government's commitment to transparency and accountability also encouraged the CNN team to use the visit to correct misconceptions and speculations about Marange.

The CNN crew had a chance to interview Zimbabwe Mining Development Corporation (ZMDC) Chairman, Mr. Godwills Masimirembwa.

Asked to clarify on allegations that revenue generated from diamond mining is benefiting Zanu PF officials, Mr. Masimirembwa said that as a parastatal, ZMDC is accountable to parliament and that the company has been remitting proceeds to the fiscus with at least US$300 million declared to government in 2011 alone.

"We have the minerals unit, which is a section of the police, represented there. Then, we have the President's Department, the Minerals Marketing Corporation and then the mining company itself. All these people can not be conniving when they have to account at the end of the day," said Mr Masimirembwa.

The CNN team which is in the country to film a documentary on Marange diamonds for the forthcoming edition of CNN's weekly programme, Marketplace Africa, will meet key stakeholders in the diamond industry during their week long visit.

Since the formalisation of diamond mining in the country, the Western media has been peddling false reports about Marange.

Observers believe Western propaganda is meant to perpetuate the sanctions agenda and block trade in Marange diamonds despite the KP having certified the gemstones.

The United States last year applied sanctions on the Marange diamonds in a move analysts say is meant to stop Zimbabwe from benefiting from its mineral wealth.

Meanwhile, government has completed crafting the draft diamond policy which seeks to promote the country as a safe destination for diamond investors.

Over the past three weeks, consultations have been going on within the mining industry.

Presenting a lecture on the country's mining policy at the Zimbabwe Staff College in the capital, Minister Mpofu said the drafting stage of the policy has been completed following intensive consultations.

"The draft diamond policy has been produced after extensive stakeholder consultations which we have carried out for the past three months. The policy is a precussor to the Diamond Act which is also at an advanced stage of drafting," said Minister Mpofu.

The diamond policy seeks to among other objectives promote the country as a safe destination for diamond investors, promote accountability as well as ensuring that the valuation and marketing of the country's diamonds meets international best practices.

The completion of the policy document will trigger the crafting of the much-awaited Diamond Bill.

Since the first discovery of diamond deposits in 1903 at Somabula, the country has been using the Precious Stones Trade Act for the administration of the diamond industry.

It is hoped that the completion of the Diamond Act will ensure that the country, which is a member of the Kimberly Process Certification Scheme, meets international standards in the monitoring and regulation of the sector.