Government adopts diamond policy

“It is true that the Zimbabwe Diamond Policy has been approved. It means the policy will now regulate the diamond mining sector throughout the value chain, security, exploration, mining, and marketing,” said the Permanent Secretary in the Ministry of Mines and Mining Development Mr Prince Mupazviriho, in a telephone interview yesterday.

The Government, in consultation with stakeholders, came up with the diamond policy after observations loopholes in the Precious Stones Trade Act that made it inadequate to effectively regulate the diamond industry in the face of emerging developments and new dynamics in the industry.
An economic commentator, Mr Peter Mhaka, said the approval of the diamond policy was a step in the right direction.

“Zimbabwe’s diamond industry is one of the fastest growing sectors and it is good that the policy has been approved at a time when there have been increased accountability concerns from various quarters.
“As the country is under sanctions, there has been a lot of noise by countries such as Australia and the United States about the country’s gemstones. The coming up of the Zimbabwe Diamond Policy is a strategy that will silence the noise by such countries on the country’s diamonds,” he said.

For the past three years, the mining industry continued to be Zimbabwe’s mainstay for economic growth and development, contributing an estimated 13 percent to the Gross Domestic Product in 2011. This year, the sector is projected to grow by 15,8 percent and boost the projected 9,4 percent economic growth this year.

Last year, diamond production rose a marginal 3,4 percent on the 2010 figure. However, a milestone achievement was made towards the end of last year when Zimbabwe got the Kimberley Process Certification Scheme nod to sell its diamonds from Marange on the international market without external interference.

In light of these developments, the Mines and Mining Development Ministry expects 2012 production to rise beyond the Medium Term Plan target of 12,1 million carats.
According to the Ministry of Finance, diamond revenue is projected to contribute over US$600 million to the fiscus this financial year.