Diamond cutting and polishing licenses holders engaging in illicit deals

The Zimbabwe government is investigating a case whereby some diamond cutting and polishing licenses holders who stand accused of abusing their permits by engaging in illicit deals.

Government has strongly warned some diamond cutting and polishing permit holders that they risk losing their licences if they fail to comply with the conditions set under the Precious Stones Trade Act of 1996.

This follows the increase in cases of illicit deals by the licensed dealers.

It is believed that some of the permit holders are engaging in the trade of the rough diamonds instead of processing the gems as required under the terms and conditions of their licenses.

Mines and Mining Development Permanent Secretary, Mr. Thankful Musukutwa warned the permit holders that they risk having their licenses cancelled if found on the wrong side of the law.

"It has come to our attention that some permit holders are not adhering to the terms and conditions of the license, in particular 1,2,3,4,5, 6 and 8 which states that all transaction of the precious stones shall be subjected to the Minerals Marketing Corporation of Zimbabwe Act, 1982 and any other regulations made thereafter," said Mr. Musukutwa.

Under the terms of the Diamond Cutting and Polishing Licenses, any rough gemstones acquired in terms of the license are expected to be cut and polished by the company at the registered premises and shall only be sold or disposed of in the processed form.

Government was forced to respond to calls for value addition on diamonds by issuing diamond cutting and polishing license to indigenous players in the local diamond industry to ensure that they can contribute to the development of the sector.