Diamond mining firms unfazed by US sanctions list

sanctions list have said the embargo will not affect their operations and marketing of the gems.

Mbada Diamonds and Marange Resources’ management said this to journalists on a tour of Chiadzwa diamond fields in Marange area on Wednesday to familiarise themselves with the gems processing.
Marange Resources mine manager, Mr Munashe Shava, said that the company’s operations will not be affected by being placed on the sanctions list.
“We have been on sanctions way back when we started operations. I do not see how the latest actions (by the Americans) will affect us,” he said.

The US added on its sanctions list Mbada Diamonds and Marange Resources in a move seen as a deliberate ploy to frustrate the country’s efforts to improve its economy through diamond sales.
This also comes shortly after the Kimberly Process Certification Scheme (KPCS) gave Zimbabwe the green light to unconditionally export its gemstones from Marange fields.
The Treasury’s Office of Foreign Assets Control (OFAC) updated its specially designated nationals list to include the two Zimbabwean companies.

Both companies operate their Marange mines in joint ventures with the Zimbabwe Mining Development Corporation, a Government owned company that is already on the OFAC list.
US citizens are prohibited from dealing with individuals or companies on the OFAC list. Mbada Diamonds mining manager, Mr Gerald Sithole, told the journalists that there was no way the new American Government’s efforts were going to affect the company’s operations.

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“Our operations will not be affected by the sanctions.
“Our mines here have nothing to do with the West. I have not felt that (sanctions) unless we are to be stopped from physical mining,” said Mr Sithole.
There are four companies exploiting diamonds in Chiadzwa in partnership with the ZMDC and these are Marange Resources, Anjin Investment, Diamond Mining Corporation and Mbada Diamonds.

Although Anjin Investment that was given green light to start selling its diamond stockpiles is not on sanctions, the firm expressed solidarity with the affected companies.
One of the directors of the company, Mr Munyaradzi Machacha, said there was need to push an agenda the world over that the sanctions were not necessary.
“Zimbabwe does not deserve these sanctions . . . We will tell them it is unnecessary to have the embargoes,” he said.

The imposition of the sanctions to the two firms also comes as diamond companies in Chiadzwa have relocated thousands of villagers from more than 700 families following the construction of modern homesteads.
Mines and Mining Development Minister Obert Mpofu is on record that Zimbabwe was geared to become an economic giant after the KP approval to sell its gems.

He has also said the country would no longer beg for foreign funding as it was expecting to rake in more over US$3 billion per year from the sale of its diamonds.
Zanu-PF secretary for information and publicity Cde Rugare Gumbo, recently said the move was typical of US and vowed that Zimbabwe would fight back.

“It is unfortunate. It is tragic and regrettable for the United States to behave that way.
“Knowing the US way of doing things, this does not come as a surprise,” said Cde Gumbo.

“But we will continue to fight back as we have fought before.
“Our indigenisation programme would not stop and we will continue to give our people the mining claims and do partnerships with those who want to work with us.”

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