South African firms muscle in on Zimbabwe's diamonds

PRESS RELEASE: ZIMBABWE’S BLOOD DIAMONDS

Broadcast: Special Assignment  - SABC 3
Time: Tuesday 27 October. 8.30 pm

SOUTH AFRICAN FIRMS MUSCLE IN ON ZIMBABWE’S DIAMONDS

Tuesday’s Special Assignment exposes the blatant disregard for the
rule of law and continued plundering of the diamond fields in Eastern
Zimbabwe.  New evidence suggests that South African firms have muscled
in, and are mining there illegally.

“We have nothing to hide. We are going ahead with the exploitation of
our resources, and nothing will stop us,” said Zimbabwean Minister of
Mines, Obert Mpofu, confidently dismissing reports of atrocities and
smuggling from the diamond fields in Eastern Zimbabwe.

Travelling the road to Chiadzwa, his words sound more and more hollow.
The area holds one of the world’s richest deposits of alluvial
diamonds.  The gems lie close to the surface of the ground, making
them easy to collect by hand. It is hard not notice the “gweja’s,” the
Shona term for illegal panners.  Group after group of young men,
carrying nothing but a plastic bag over their shoulder, head for the
diamond fields hoping for a share in its riches.  It is at the risk of
their lives.

The area is heavily militarized and every few kilometers one is
stopped by a security check point, manned by police and soldiers.
Only last month, Moreblessing Tirivangani, was beaten to death during
a rotation of army units who patrol the area.

A year ago the military killed hundreds of people, and tortured even
more, in a brutal clampdown on illegal mining activities.  Now
soldiers are cashing in on the gems.

“Nearly every soldier that is in Chiadzwa at the moment is involved in
panning in one way or the other. They have also formed syndicates so
that those panners will get the escort of the military and they
continue panning with the protection of the soldiers,” says Farai
Maguwu, Director of the Centre for Research and Development, an NGO
that has been documenting violations in Chiadzwa.

Many of the diamonds are smuggled into Mozambique.  The town of Vila
de Manica is only 18 kilometres from the border with Zimbabwe.  It is
crawling with illegal dealers from countries like Lebanon, Sierra
Leone, Guinea, DRC, Nigeria and Israel.  Newly painted houses,
bristling with barbed wire and CCTV cameras, are guarded by men armed
with AK 47s.  Every day streams of Zimbabweans arrive to sell their
stones, stolen from Chiadzwa.  They admit it is with the help of army
syndicates and senior government politicians.

The lack of control on the diamond fields of Chiadzwa, extends beyond
pillaging by the army. Last month, mining firm African Consolidated
Resources plc. (ACR) won a High Court ruling confirming their title to
the Marange diamond fields.  In 2006, the Zimbabwe government seized
the claims from ACR and evicted them from the diamond fields barely a
year after they had begun operations. High Court Judge Charles Hungwe
ordered the Zimbabwe Minerals Development Corporation (ZMDC)to stop
its mining activities and directed the government to restore African
Consolidated Resources' right to mine in the area.

ACR has still not been able to gain access to the diamond fields. The
Zimbabwe Mineral Development Corporation has signed a shady joint
venture with a Mauritian off-shore company, Grandwell Holdings. They
are operating under the name Mbada Diamonds. Behind it all is a South
African scrap metal company, Reclamation, who is understood to have
spearheaded the deal. Any diamonds they trade, will be obtained
illegally.  Reclamation director, David Kassell said this was inaccurate and refused to comment.

Outraged by ZMDC’s flagrant disregard of the High Court ruling, Andrew
Cranswick CEO of African Consolidated Resources said, “their foreign
partners are bringing in experts and top machinery, so the foreign
partners will rape it for the foreign interests as opposed to the
national interests and that is the tragedy and that has to be stopped.”

This comes at a time when Zimbabwe faces the possibility of being
banned from trading in rough diamonds.  In July, the Kimberley Process
Certification Scheme sent a review team to investigate the human
rights violations and looting of diamonds from Chiadzwa.  The
international watchdog on “conflict diamonds” found gross
irregularities and recommended that Zimbabwe be suspended until they
comply with minimum standards. It is the first time an state
government, and not a rebel army, stands accused of “conflict
diamonds.” Amidst heated debate, the KPCS is to meet in Nambia on 2
November to decide Zimbabwe’s fate.

“The government of Zimbabwe until now, has not really disclosed how it
conducts its trade in its minerals. It is a very closely guarded
secret and that gives room for corruption by senior government
officials, by the military bosses who are now in charge of Chiadzwa,”
says Farai Maguwu.

The Minister of Mines seems unconcerned. “We are going it as
government alone, without their support. We are not going to stop
because they have not supported us,” he said.