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Ray Bande in VICTORIA FALLS
CHAIRING the African Diamond Producers Association (ADPA) has helped enhance the county’s image in the global precious gems trade industry, a Cabinet Minister has said.
ADPA, which is made up of 15 member states and observers, had its fifth extraordinary meeting of the Council of Ministers and Committee of Experts in Victoria Falls.
In an interview with Post Business on the sidelines of the meeting, Mines and Mining Development Minister, Honourable Winston Chitando said: “This is mainly an administrative meeting meant to strengthen the operations on ADPA. The strategic planning and budgeting on initiatives to be undertaken formed the core of what was being discussed here. We are basically trying to strengthen the effectiveness of ADPA.”
The diamond trading bloc was formed in 2006 as a continental branch of the African Diamond Council.
It comprises 15 member states that include Angola, Botswana, Cameroon, the Central African Republic, the Democratic Republic of Congo, Ghana, Guinea, Namibia, Sierra Leone, South Africa, Tanzania, Togo, Liberia and Zimbabwe.
Minister Chitando said Zimbabwe has benefitted immensely from chairing ADPA.
“I think chairing ADPA helps in terms of Zimbabwe’s image. It is not too long back when Zimbabwe was on the verge of being kicked out of the Kimberly Process and for Zimbabwe to bounce back to chair, not only the Kimberly Process, but ADPA as well, is really a lot of recognition, and thanks to the Zimbabwe is open for business mantra which has really opened avenues in shaping up the image of Zimbabwe.”
On the international diamond trade front, Minister Chitando said the proliferation of synthetic diamonds present a challenge, which was also discussed during the fifth ADPA conference.
“Diamonds are mined from the ground, but there are diamonds being manufactured in the laboratory. It is possible that diamonds made in the lab can be cheaper than those mined from the ground, and telling the difference between diamonds mined to those made in the lab could be very difficult for some people. Therefore, this presents a challenge for the producers of real diamonds,” said Minister Chitando.
Among other aims of ADPA is the transformation of conflict diamonds into diamonds of peace and sustainable development.
Cooperation between member countries in policies and strategies concerning prospecting, mining, production, cutting and polishing, as well as development of human resources and acquisition of technologies in the diamondiferous sector is also a priority area for ADPA.
On the domestic scene, the Mines and Mining Development Minister said the diamond sector is poised to contribute US$1 billion to the US$12 billion mining revenue that the country is on the cusp of attaining.
Measures put in place to achieve the US$12 billion mining target include compelling gems and precious metal miners to pay half of their mining royalties to Government through physical minerals as the country builds its mineral reserves.
Previously, the mining entities were paying a portion of their revenue in foreign currency, but mineral reserves serve as a source of trust in a country given that they carry no credit or counterparty risks.
Online Reporter