Saturday, November 27, 2010

No Marange breakthrough

HARARE – Talks to break an international deadlock over Zimbabwe's suspended
diamond exports ended in Belgium on Thursday without a deal as the market
was awash with rumours that Harare was courting buyers for stones from its
controversial fields to the east of the country.

Industry representatives failed to hammer a compromise deal after a special
meeting of the Kimberley Process (KP)'s Working Group on Monitoring (WGM)
ended in Brussels with no consensus on whether to allow rough diamond
exports from Zimbabwe.

The Brussels meeting followed a KP plenary session held earlier this month
in Israel which nearly reached an agreement after direct consultations
between the United States and Zimbabwe.

The agreement was widely accepted by KP members but was blocked by Canada
and Australia.

The Tel Aviv meetings ended with a decision to continue negotiations until a
unanimous agreement is reached.

Zimbabwe boycotted the WGM meeting although it was said to be liaising with
the working group via a delegation from neighbouring countries.

Harare has insisted that it would resume selling the gems "without any
conditions".

Under a set of measures meant to bring Zimbabwe's controversial diamond
industry in line with KP standards, the world diamond industry must monitor
production and sales of diamonds from Marange field where the army has been
accused of rights abuses against civilians.

International rights groups have been pushing for a world ban on Zimbabwe
diamonds until Harare acts to ensure mining at Marange also known as
Chiadzwa is in full compliance with KP standards.

Meanwhile, media reports said rough diamonds mined by Mbada and Canadile –
two joint venture companies partnering the government in mining the Marange
gems –are being offered to diamond buyers.

Diamond industry publication IDEX Online noted that while the export status
of the diamonds was unclear, Zimbabwe was reportedly "seeking bids for the
goods".

"It's not clear if the goods are among those that were KP certified earlier
this month by the KP monitor, Abbey Chikane," the publication said.

Chikane sneaked into Harare this month and authorised the sale of Marange
diamonds without the consent of other KP members.

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