Notes from the Edge

1. The Kimberley Process Review Mission to Zimbabwe found little to no evidence of any wrong doing at the two diamond mines in the Marange diamond fields. Mission members are tight lipped, but from the little that did come out I hear that the army pulled out of the mine areas and is now stationed outside the fences, as required by KP. Some extra investigations by at least two members of the review mission looking for evidence of any foul play found nothing.

However - the one big issue was a forensic audit that was supposed to be carried out by the government on its stockpile. It was not done, and this is a big mistake on their part. The mission's report is being written now, and expected to be submitted in early September. The outcome of the failure to carryout the audit may be that from now on, every time Zimbabwe would want something, it will have to pay up in advance.

2. An NGO was supposed to accompany Monitor Abby Chikane in Zimbabwe – this is also part of the St Petersburg agreement. Zimbabwe decided that it can appoint whomever they wanted. The NGO's, maybe in spite, made a special effort, and appointed no other than Farai Maguwu to the job.

I can't imagine that Minister of Mines Mpofu is jumping with joy, however, on the upside, the appointment would likely ensure that Farai Maguwu will not be dragged back into jail any time soon.

3. In the meantime, there is another captivated load – Rio Tinto can't export its Murowa diamonds. The sides are not happy to talk about it, but no one is denying that until Zimbabwe gets its KP freedom, Rio Tinto's goods are anything but free to leave the country.

However - in an odd twist, Rio Tinto was just recognized by the Zimbabwe government for its investments in water, education and HIV care in the Murowa area.

4. The legality of Zimbabwe's KP-certified rough is making some noise this week. To clarify, the U.S. sanctions against Zimbabwe lists a number of Zimbabwe companies. Basically, U.S. registered companies are not allowed to do business with them and banks will not wire funds to them. I'm told that parties to such transactions are subject to potential civil or criminal penalties, depending on the circumstances.

However (!) if one of these Zimbabwean entities does business with an Indian company, and the money never goes through the U.S., then this is a perfectly legal transaction.

This is important for a number of reasons. The Indian industry is the one most involved with and affected by these goods. According to a large Indian manufacturer, Zimbabwean goods are sold in India, mostly in North India. In other words, Indians are free to buy, manufacture and sell these goods. As are most anyone else.  

5. I've spent most of the past week in Mumbai as a guest of the GJEPC. It added a new show to its roster of activities, the IIJW. Think fashion week, but focusing on jewelry instead of clothes. The venue, organization and jewelry were all great. The designers were a mixture of big names and fresh promising talents. I was struck by the fact that this organization is now running three shows a year, two of them in consecutive weeks.

The Indian press is full of stories and photos, usually spread over a number of pages. They are raising awareness, generating and doing good business.

No 'however' for this one. As one part of the world is giving us grief, another is plowing ahead, and pulling us all along with it. That is impressive.