Zimbabwe Cancels Rough Diamond Auction
January 10, 10
A planned auction of more than 300,000 carats of rough diamonds scheduled for last Thursday has been cancelled last minute by the government of Zimbabwe, according to a report on a government web site. The goods were apparently not certified by the Kimberley Process.
In its cancellation notice, Ministry of Mines and Mining Development Permanent Secretary Thankful Musukutwa said that Mbada Diamonds Mining, which holds a license to mine diamonds in Chiadzwa, had not followed diamond sales procedures.
According to Musukutwa, the auction will take place after the diamonds are examined and get KP certification.
“The government of Zimbabwe and the KPCS [Kimberley Process Certification Scheme] are currently in the process of engaging that KP monitor and as such no export [of diamonds] will take place prior to certification by the KP monitor," said Thankful Musukutwa.
The decision to appoint a KP monitor came as a compromise at a KP meeting in November after international pressure to ban
The Kimberley Process, formed to battle financing rabble activities by selling diamonds, decided on the appointment of the monitor. Zimbabwe is yet to approve the KP’s candidate. Until a monitor is in place, Zimbabwe can not export diamonds from Chiadzwa or the Marange region.
“The government of Zimbabwe observes and is committed to the administrative decision of the Kimberley Process Certification Scheme,” said Musukutwa.
Last week’s auction was planned to be the first of two such selling opportunities, with the second auction to be held this week, according to Mbada chairman Robert Mhlanga.
The Zimbabwean government is to reportedly receive the bulk of the proceeds - a 50 percent dividend as a partner of Mbada, a 10 percent royalty fee, a 15 percent tax and a five percent resource depletion fee.