Release confiscated diamonds: ZMDC

Mr Ernest Denhere, deputy chief investment officer of the Mutapa Investment Fund (MIF), said the structural market shift posed unprecedented challenges for the Zimbabwe Consolidated Diamond Company (ZCDC), which is among the State-owned enterprises under the sovereign wealth fund. He was speaking on Friday during a tour of ZCDC’s operations at Chiadzwa by Parliament’s Public Accounts Committee.

decision by the Kimberley Process to allow the country to freely market its gems, an official has said.
The KP gave Zimbabwe the green light to market diamonds from Marange at its meeting in Kinshasa last week. This ended a long trade ban it had imposed on suspicion Zimbabwe’s gems were “bloody”.
Before the lifting of the ban, Belgium and the United Arab Emirates had reportedly confiscated Zimbabwe diamonds.
Some of the gems taken by Belgium are thought to be in Antwerp at the World Diamond Centre.
Both countries seized the diamonds on the grounds Zimbabwe was not authorised by KP to export them.
Zimbabwe Mining Development Corporation chairman Mr Godwills Masimirembwa said since the KP had lifted its ban on Zimbabwe’s gems, countries holding Zimbabwe’s diamonds should now release them.
“Now that KP has ruled in our favour, those goods that are being held in transit by certain countries should be immediately released,” he said.
He noted at the same time that the West, particularly the United States, was still trying to reverse the KP’s landmark ruling.
He said the US, through its Foreign Assets Control Office, was blocking buyers from making payments to the ZMDC through international banks.
The ZMDC is one of State-run companies under US sanctions imposed in 2001.
“The movement of money is still difficult. America fully recognises that if Zimbabwe sells (its diamonds), sanctions will die naturally,” said Mr Masimirembwa.
He added: “Zimbabwe will trade its diamonds for their correct value.”
Meanwhile, the ZMDC chairman said diamond output, which had declined because of the trade ban, was now expected to rise after the lifting of the embargo.
“Production was affected by lack of capital,” he said. “Now that sales will resume, production will pick up.”
Currently, Mbada Diamonds, Marange Resources, Anjin, Puredime and Sinozim are exploiting the Marange alluvial diamonds.
But only Mbada, Marange Resources and Anjin have been allowed by KP to export without supervision.
Zimbabwe is believed to have the potential to satisfy 25 percent of the global diamond demand. – New Ziana.