Granting of new diamond cutting and polishing licences suspended

Government has suspended the granting of new diamond cutting and polishing licences due to misuse by some licensed players, Mines Minister Obert Mpofu said yesterday.

Government had licensed 10 diamond cutters and polishers in a bid to add value to the country's gems.

Minister Mpofu said some of the licensed dealers were trading in raw diamonds, flouting their primary mandate of value addition.

"We have temporarily stopped issuing new diamond cutting and polishing licences pending investigation of those suspected of abusing their licences," he said.

"Our officers are already on the ground, those found guilty will have their licences cancelled and they will be prosecuted."

The licences are issued under the Minerals Marketing Corporation of Zimbabwe Act, 1982 and among other things, compel those licensed to add value to the diamond before trading them.

Minister Mpofu said the ministry was carrying out an inspection of the licence holders to evaluate compliance.

"Inspections are ongoing although this time they were triggered by the misconduct of some players, whom we are weeding out," he said, adding: "licensing will only resume after the exercise."

He said when licensing resumes, strict measures would be implemented to exclude fraudsters.

"Tighter measures will be introduced to select applicants," Minister Mpofu said.