Diamond industry receives major boost

25 Nov, 2021 - 00:11 0 Views
Diamond industry receives major boost Minister Mutsvangwa

The Herald

Nelson Gahadza Senior Business reporter

The local diamond industry has received a major confidence boost following the country’s nomination as incoming chair of the African Diamond Producers Association for 2022 and election as vice chair of the global Kimberley Process Certification Scheme for 2022, while it readies to assume full chairmanship in 2023.

The Kimberley Process Certification Scheme (KPCS) is the core of the Kimberley Process, which is a multilateral trade regime established in 2003 by the United Nations General Council to prevent the flow of conflict diamonds. 

Under the KPCS, member States implement safeguards against shipments of rough diamonds and certify the diamonds as “conflict free”.

The country’s diamonds have previously been suspended from trading internationally on allegations of conflicts at the diamond fields, but the latest assignment is a huge global endorsement of how far the country has come in terms of conforming to desired global standards on diamond mining and trading.

Information, Publicity  and Broadcasting Services Minister Monica Mutsvangwa, in a post cabinet brief, said Zimbabwe was elected Vice Chair of the KPCS for 2022 at the plenary meeting held in Moscow from 8th to 12th November, 2021.

“By practice of the Kimberley Process, this means that the country will automatically take over the Chair of the KPCS in 2023,” she said.

Minister Mutsvangwa said the appointment of the country on the global diamond network reflects endorsements of Zimbabwe’s engagement and re-engagement drive with all nations of the world.

“The Zimbabwe is Open for Business Mantra has resulted in increased respect for the country. Zimbabwe is currently a member of all the working groups and Committees, with the exception of the committee on rules and procedures. This has further reinforced Zimbabwe’s profile and respect,” she said.

The KPCS works as a tripartite body with the current setup having: Industry (represented by the World Diamond Council,) Civil Society Coalition and Governments.

Minister Mutsvangwa said Zimbabwe will immediately start preparations to take over the chair and run the Secretariat in 2023 and preparations will also commence for the hosting of the two annual meetings of the KPCS in 2023, namely the Intercessional and Plenary, Establishment of a skeleton secretariat to start learning from other countries in hosting the Chairmanship and Secretariat.

“Cognisant that Zimbabwe will take over the Chair in the year that the KPCS holds its Review Cycle, preparations in that regard will also commence,” the Minister said.

In the African Diamond Producers Association (ADPA) for 2022,  as the chair, Zimbabwe will ensure that African diamond producers present a united voice on the international diamond scene on matters affecting them.

It will also promote cooperation and information sharing amongst ADPA member States; and formulate strategies to improve the African diamond industry as well as engage African countries who are not members of ADPA.

Zimbabwe’s diamond industry is currently consolidated under the Zimbabwe Consolidated Diamond Company (ZCDC) which was formed following the March 2015 Government decision to consolidate all diamond mining companies to form a wholly owned government company.

The ZCDC was established as a merger of DTZ-OZGEO, Marange Resources, Kusena Diamonds, Diamond Mining Company and Gye Nyame, when Anjin and several other diamond miners were de-licensed by the Government and barred from operating in Marange, in Manicaland province, for alleged impropriety.

During the first half of the year, ZCDC produced 151,3 kg of diamonds with the company achieving a profit of US$26,35 million.

The firm anticipates to produce 3 044 050 carats (608,81kg) by the end of 2021. In the six months period to June 2021, diamond sales yielded US$64 770 207, against a target of US$78 650 000. 

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