Unending ownership disputes with the efforts international advocacy groups against so-called “conflict diamonds” may yet undermine Finance Minister, Tendai Biti’s hopes of using revenues from the controversial Marange diamond fields to boost the country’s economic development.

When announcing the Government’s new economic blue-print, Minister Biti said the formalisation mining arrangements at the Chiadzwa diamond fields near the Eastern Border city of Mutare, should benefit the country and send positive signals to international investors over the credibility of the government’s mining policies.

The Zimbabwe government recently moved to end chaotic informal exploitation of the diamond fields by facilitating joint ventures between the state-owned Zimbabwe Mining Development Corporation (ZMDC) and two private companies.

However another company with prior claims to the fields, African Consolidated Resources (ACR) immediately sought relief in the courts precipitating a series of applications and counter applications between it and the joint venture partners which remain unresolved.

And in a move whose effect could only be to add to the legal disputes, the Government’s mining commissioner recently indicated that he intended to cancel the claims of ACR and other companies in the area with effect from the 25th of this month because they “were improperly pegged and registered on land that had been reserved against prospecting and pegging”.

However ACR and other affected companies can appeal the decision to the Minister of Mines and Mining Development and, failing that, take the matter to the High Court.

Again, as if this were not enough legal trouble, local inhabitants targeted for relocation by the Government to make way for the mining operations are also in the court seeking an order to halt their removal until they are properly and adequately compensated for their losses.

Meanwhile, diamond traders, human rights organisations and other advocacy groups continue to campaign for a ban on Zimbabwe diamond exports over allegations of rights abuses.

Ingle & Rhode, the UK‘s principal retailer of ethical jewellery and custom engagement rings produced using “conflict-free” diamonds and “fair trade gold”, became the latest firm to call for a ban on Zimbabwean diamond exports.

“Continuing to allow exports of Zimbabwean diamonds in such circumstances would make a mockery of the Kimberley Process – which was established in 2003 to assure consumers that the diamonds they were purchasing were not funding conflicts or human rights abuses – that is meant to avoid just such practices from occurring,” the company said in a press statement.

(Source)