Archive for November, 2009
Whiteflash.com praised for Conflict Free Diamond Site
by Admin on November 23rd, 2009
One American jeweler determined to address Africa’s continued suffering has introduced a conflict-free diamond pendant. Online diamond retailer whiteflash.com along with the World Centers of Compassion for Children International (WCCCI) launched an initiative in which 100 percent of proceeds from conflict-free diamond pendant go to WCCCI.
“Whiteflash.com has some of the finest ethically produced designer bridal jewelry available,” said Debi Wexler, president of Whiteflash.com and conflict free diamond activist. “The site offers the conscious consumer a means to connect directly to diamond beneficiation projects, such as Whiteflash’s Dreams of Africa collection in which 100% of proceeds go to help those children who have suffered under blood diamond conflicts.”
“While other companies offer commercially produced ‘green rings’ and conflict free jewelry, what makes us different is that 100% of our profits go to those who really need out help,” said Whiteflash.
The $4,400 Dreams of Africa(TM) diamond pendant will only be available from whiteflash.com
“Our Dreams of Africa are not for partial peace. They are for total peace,” said Debi Wexler, CEO of whiteflash.com. Wexler along with WCCCI’s founder Betty Williams are jointly working towards building safe and nurturing environments for children “who need a second chance in life. If we start teaching peace at the beginning of these young children’s education, we will help these children to shine like brilliant diamonds for the world.”
Specifically, Whiteflash.com will focus on efforts to help children who have suffered from conflicts in Sierra Leone, Liberia and other African countries. Conflict or “blood” diamonds are illicitly smuggled diamonds, the sales of which are used to finance wars against countries’ legitimate governments.
Whiteflash is known for its pioneering efforts in conflict free jewelry and educating consumers with the most comprehensive trade and consumer resource on conflict free diamonds.
“We need consumers to understand that there is a huge difference between blood diamonds and conflict-free diamonds,” said Wexler. “Not all diamonds are ill-gotten. When diamond mining is undertaken in the correct manner, without child labor or government conflict, the profits build infrastructure and serve as a source of livelihood for hundreds of thousands of people. As a socially responsible design company in the diamond industry, we believe it is our duty to support children who have suffered under blood diamond conflicts and to create awareness in order to combat such illicit diamond trade.”
Whiteflash.com and WCCCI will work to establish the first learning center, headquartered in Italy, which will provide scholarships for children from Sierra Leone and other locations across Africa, and to instill values of peace and understanding during these children’s early education. Italy’s government donated land to build the learning center.
Whiteflash began this endeavor to support the WCCCI’s commitment to providing safe havens and educational opportunities for children. Whiteflash hopes that their Dreams of Africa collection and education on conflict free diamonds will help in the creation and support to provide a second chance for these children to be educated about peace.
Alicia Keys Creates Inspirational Necklace For Keep A Child Alive
by Admin on November 23rd, 2009
The special design for Keep A Child Alive is a sterling silver double tablet necklace on an oxidized rope chain features the Gandhi quote which says: “The best way to find yourself is to lose yourself in the service of others.” The design is inspired by ancient Inukshuk rock sculptures used to alert others they were on the right path. The necklace sells for $295 and Keep A Child Alive receives $100 from each one.
Details Emerge on Marange Mining Investors
by Admin on November 23rd, 2009
Zimbabwe’s mines minister Obert Mpofu did not float a tender, as required, to select prospective investors in a partnership for diamond extraction in the Marange diamond fields. Allegations indicated that he overlooked better equipped and experienced diamond miners than those now working the ground.
Investigations by the Zimbabwe Independent revealed that Mpofu cherry-picked Canadile Investments and Mbada Minerals without going to tender. Those two companies have a complex list of shareholders, from South Africa and Mauritius, and include New Reclamation Group. Old Mutual Invemstment, which has nearly 6 percent share in New Reclamation Group, has recently come under fire by human rights groups for its involvement in the Marange diamond deal too.
Sources say Mpofu was grilled by his government colleagues for the selection process of the investors but he defended his actions saying that due to the Kimberley Process threat of diamond sanctions, he could not float a tender.
Government insiders are said to have also inquired if due diligence was conducted with the mining partners. Investigations by the Independent reveal that Canadile and Mbada have never mined diamonds.
Mbada has yet to be registered in Zimbabwe, and is controlled by New Reclamation, which is a scrap metal and iron dealer in South Africa. New Reclamation first registered as Grandwell Holdings, a special purpose vehicle registered in Mauritius, ahead of an anticipated partnership with the Zimbabwean government in the diamond-mining project.
Grandwell was registered as a Global Business Category 2 Company on July 15 under company registration number 89386. The registered agent is Kross Border Trust, according to documents found. Liparm Corporation, chaired by retired air-vice marshall Robert Mhlanga is a partner in Grandwell, but he was a key state witness in Prime Minister Morgan Tsvangirai’s treason trial in 2003. He testified that Tsvangirai had contact with former Israeli spy Ari-Ben Menashe who claimed Tsvangirai hired him to kill Mugabe.
His daughter, Patience Mhlanga, and a Zimbabwe Minerals Development Corporation (ZMDC) official, Alex Mukwekwezeke are also directors of Mbada. But ZMDC chief Dominic Mubayiwa says Mukwekwezeke resigned from the the mining group. Little is known about Mhlanga except that he is now based in Sandton, South Africa.
But New Reclamation, according to investigations, is no stranger to Zimbabwe’s business and political terrain. Over the years the company has been attempting to make in-roads into Zimbabwe’s mining sector. In 2008, the company reportedly made a bid for Zimbabwe Iron and Steel Company (Zisco) but the bid seems to have fallen through.
Before making the bid for Zisco, sources said New Reclamation was buying scrap from the rundown steel maker and has secured a 50 percent shareholding in the diamond mine.
In a move that could see Zimbabwe busting sanctions imposed on the Marange diamonds, Mbada Minerals has been awarded the lease of the old Harare Airport domestic terminal for the establishment of storage bunkers and diamond cutting facilities.
Industry experts said that once diamonds are semi-cut, the gems would no longer be under the watch of the Kimberley Process Certification Scheme (KPCS). And they can then make their way into global markets.
The export of cut or semi-cut stones after the establishment of a single facet would fall off the KPCS’ radar, essentially removing all threat to rough.
Already Marange Resources — a wholly owned government mining company — has been ordered to stop mining operations at its mechanized mine in Marange to pave way for Mbada Minerals.
It is not clear how much Canadille and Mbada paid for their 50 percent stake in the diamond projects. A joint-venture agreement in the possession of the Independent shows that New Reclamation will have exclusive marketing rights of diamonds from Marange. New Reclamation’s other South Africa directors are Gordon McCrae and his son, Robby, who together own the company through a trust.
According to the Independent investigations, Core Mining, a South Africa-based company partnered businessman Lovemore Kurotwi to form Canadile Investments. It is not clear how much shareholding he owns but he is a director of Canadile Diamonds. He also served in the army and is a retired major. The consortium comprising Core Mining is led by an Israeli diamond dealer and trader Yehuda Licht or Judah Licht, according to documents.
Canadille won the bid ahead of Gem Diamonds, a leading global diamond producer with diamond mining operations throughout the world and headquartered in London. Ironically, the same mining area, a reportedly 1,000 hectares, allocated to Mbada Minerals is in dispute.
African Consolidated Resources (ACR) won a High Court order barring ZMDC from carrying out mining work at Marange. The court also ruled that ACR was the rightful owner of the claim and was owed all diamonds mined and stored since being removed from the land by military.
Satellite images and Marange production reports in possession of the Independent show that ZMDC is in contempt of court by continuing to mine there.
Apparently though, ACR is not out of the mining picture in Zimbabwe. It now plans to raise $16.8 million through placement of new ordinary shares. Net proceeds would fund “an aggressive program of exploration activities across the company’s portfolio of projects in Zimbabwe.”
“In particular, the company’s intended exploration work program includes a drilling program at the Blue Rock gold project with the aim of defining a maiden JORC (Joint Ore Reserves Committee) resource and drilling at the Pickstone Peerless gold project with the aim of expanding and upgrading the project’s existing 513,000 ounces inferred JORC resource,” the company confirmed.
JORC is a professional organization that examines and regulates reporting practices associated with mineral deposits to eliminate cases of misrepresentations which may mislead investors. ACR wants to undertake a drilling program at the Giant Mine gold project to expand the existing 300,000 ounces (per annum) and the drilling of the Chishanya phosphate project to define a resource at Baradanga Hill.
The funds would also be used to undertake pitting activities at the Horseshoe nickel project with the aim of defining a maiden JORC resource.
ACR also intends to finance the progress of exploration activities including electromagnetic survey and drill target definition work at the Perseverance nickel project, selective diamond drilling at the Snakes Head platinum project and Cedric copper project and regional diamond exploration.
Chief executive of ACR, Andrew Cranswick, said the mining company’s projects and strategies have been warmly received by the investment community.
Meanwhile, from South Africa, Old Mutual Investment dissociated itself from New Reclamation and said it had acquired its small interest in the diamond field only after the “reported wrong doing” on the fields, which it condemned. Old Mutual insisted that it had asked its partner company to comply with a Harare High Court order in September restricting mining of certain claims in the diamond field to ACR. Old Mutual insisted that it would comply with the Kimberley Process.
IDMA and WFDB Presidents Support Ending Diamond-funded Conflict
by Admin on November 20th, 2009
In a joint statement, the presidents of the International Diamond Manufactures Associated (IDMA) and the World Federation of Diamond Bourses (WFDB) voiced their unanimous support for the Kimberly Process Certification Scheme as well as the principals of the World Diamond Council.
“IDMA and the WFDB reconfirm their commitment to end and prevent the use of rough diamonds for the purpose of funding conflict, anywhere in the world.
“We reiterate that our endorsement of the Kimberley Process, the World Diamond Council and the Supportive System of Warranties remains strong,” they declared after intensive discussions at the 2009 Presidents’ Meeting held in Antwerp earlier this week.
Zimbabwe’s decision to not export rough diamonds form Maragne until it fully implements the monitoring system was duly noted by the two presidents. They reiterated their expectation that organizations adhere to the stringent controls agreed upon at the KP Plenary meeting in Namibia on November 5.
Zimbabwe Withdraws Security Agents From Chiadzwa
by Admin on November 19th, 2009
Zimbabwe has started withdrawing state security agents deployed to secure the Chiadzwa diamond fields as part of measures undertaken to comply with the Kimberley Process Certification Scheme (KPCS) recommendations. The uniformed and plain-clothed agents were deployed after a diamond rush resulted in widespread smuggling and other illegal activities, as well as unprecedented environmental degradation in the eastern district.
The compliance work plan for Chiadzwa has also seen two private investors being engaged to boost diamond output since the area has been identified as key to ongoing economic turnaround. Speaking during a tour of the fields by a high-level government delegation led by deputy prime minister Arthur Mutambara yesterday, mines and mining development minister Obert Mpofu said Zimbabwe had complied with more than 90 percent of the KPCS requirements.
“We have done a lot since the last review by the KPCS as part of our efforts to comply with their recommendations, as well as toward achieving and fulfilling compliance,” he said. ”As is evident at these fields [where operations have started], there are no army officers or police details.”
Minister Mpofu said state security personnel would continue being recalled as mining activities expanded across the fields. The Zimbabwe Mining Development Corporation, in partnership with South Africa’s Core Mining and Grandwell Holdings, operating as Canadile Mines and Mbada Investments, respectively, are working at the area.
Dave Kassel, a representative of those mining investors, told the delegation that they had employed 200 private security guards to replace the state agents. The companies also introduced dog patrols to enhance security at the diamond fields.
“We are taking control of all areas that we have claimed, but still working with state security agents in areas where we are still exploring. But they will move as soon as we have secured those areas,” he said.
Minister Mpofu expressed satisfaction at the way operations were expanding and productivity was rising at the diamond fields since the last KPCS review in July.
“The area was a bush when the KPCS review team visited, but it has been turned into a very active mining area and the country has started benefiting from the exploitation of diamonds. The government was confident that the Marange diamond fields would drive the nation’s economic turnaround efforts,” Minister Mpofu said. ”Through the exploitation of these diamonds, Zimbabwe will very soon no longer be talked about as a basketcase. I want to urge all investors interested in diamond mining or other mining activities to come to Zimbabwe and work with the government. Investors should not be deterred by the negative statements about Zimbabwe and come and invest in the country.
“They should not hesitate to approach my ministry for possible investment engagements, as there is still room for many other investors in Marange and other mining areas in Zimbabwe,” he added.
Minister Mpofu paid tribute to the Chiadzwa political and traditional leadership, as well as the people of the area in general, for supporting government efforts to develop diamond mining there.
JA Calls for Quick Implementation of KP Work Plan in Zimbabwe
by Admin on November 19th, 2009
Jewelers of America (JA), the national trade association in the U.S. for businesses serving the fine jewelry retail marketplace, has called upon the Kimberley Process (KP) to fully and quickly implement a work plan that has been agreed upon by the KP and the government of Zimbabwe. The work plan is designed to address serious concerns over the country’s non-compliance with the Kimberley Process Certification Scheme (KPCS) and reported human rights violations in the Marange diamond fields in Zimbabwe.
JA has kept a close eye on the recent KP plenary that took place in Namibia, especially with regard to outcomes pertaining to diamonds from the Marange fields. A KP review mission to the country this past summer indicated significant non-compliance with the minimum requirements of the KPCS.
On November 5, the KP decided, amidst great debate, against the suspension of Zimbabwe and has instead implemented a 12-month work plan that specifically targets exports of rough diamonds from the country’s Marange diamond fields, the site of reported human rights violations.
“Jewelers of America continues to support the Kimberley Process, which has been vital to maintaining consumer confidence in diamonds since it was first implemented in 2003,” says JA president Matthew A. Runci. “However, we are disappointed with how the KP has handled the situation in Zimbabwe, believing more decisive action was widely expected at the plenary meeting.”
That said, JA believes the work plan, as agreed between KP and Zimbabwe — if implemented fully and quickly — is a step in the right direction that would help ensure KP compliance and improve conditions on the ground in Zimbabwe. The association fully supports the U.S. Department of State, which has called for the “full and expeditious implementation of the stringent controls” that were agreed upon at the Plenary. As part of the KP work plan, all rough diamond shipments from the Marange region will be suspended until a KP monitor is in place. Once the KP monitor is in place, all exports from that region must bear the signature of the monitor on the KP Certificate.
“It is incumbent upon all — governments and industry alike — to see to it that these particular requirements are met as the full work plan is implemented,” Runci added. “Jewelers of America remains deeply concerned about reported human rights abuses in the diamond fields of Marange and we will continue to follow implementation closely.”
JA has also updated its member guidance on conflict diamonds in order to address specific questions about Zimbabwe.
IDMA, WFDB Reaffirm Commitment to Conflict Diamond Prevention
by Admin on November 19th, 2009
At the conclusion of the 2009 presidents meeting of the International Diamond Manufacturers Association (IDMA) and the World Federation of Diamond Bourses (WFDB), the groups issued a statement that emphasized the organizations’ unequivocal commitment and determination to uphold the Kimberley Process Certification Scheme (KPCS) and the principles of the World Diamond Council (WDC), of which IDMA and the WFDB are co-founding members.
In their statement, the presidents said that after intensive discussions, they resolved to send a clear message to the players in the diamond supply chain.
“IDMA and the WFDB reconfirm their commitment to end and prevent the use of rough diamonds for the purpose of funding conflict anywhere in the world. We reiterate that our endorsement of the Kimberley Process, the World Diamond Council and the supportive system of warranties remains strong,” they declared.
The organizations stated that the Kimberley Process (KP) has prevented and will continue to prevent the flow of conflict diamonds into legitimate markets. To that end, the organizations expect full and timely implementation of the stringent controls that were agreed upon at the KP plenary meeting held in Swakopmund, Namibia on November 5, 2009.
IDMA and WFDB noted Zimbabwe’s decision not to export rough diamonds from Marange pending full implementation of the monitoring system. Any member who trades in rough diamonds from Marange prior to the full implementation of this monitoring system and the KP compliance resolution will be subject to expulsion.
The attending IDMA and WFDB presidents further stated that any human rights abuses linked to diamond mining and processing cannot and will not be tolerated.
Passop Protests Old Mutual’s Zimbabwean Holdings
by Admin on November 18th, 2009
Local civil rights nongovernmental organization (NGO) Passop is planning to approach the South African human rights commission to lodge a complaint against insurance giant Old Mutual. Passop is objecting to Old Mutual’s stake in Zimbabwe’s state-owned newspapers and its interest in a South African company mining diamonds in the Chiadzwa diamond fields, where rampant human rights atrocities have been reported.
The Cape Argus revealed that Old Mutual holds a 19 percent share in Zimpapers, the official publishers of The Herald newspaper. Shortly afterward, it emerged that the financial group is also a part owner of the South African company Grandwell Holdings that has secured a mining deal at the contested diamond fields.
Old Mutual’s involvement in mining the fields has further outraged civil and human rights groups, which have started campaigning for the insurance corporation to cut its ties with The Herald, Mugabe’s propaganda machine. More than 1,200 people have signed the online petition demanding that Old Mutual withdraw its stakes in the Zimbabwean. Braam Hanekom of Passop said the group believed that Old Mutual’s response to the allegation undermined basic human rights.
“The next appropriate step will be to take the matter to the human rights commission,” he said. Clearly, Old Mutual does not abide by any self-imposed moral standard, so we will seek intervention.” Hanekom said it appeared as though the company did not see the need to respect human rights in its investments.
Old Mutual’s corporate affairs director, Crispin Sonn, said today that the company held a 19 percent stake in Zimpapers — “held entirely by Zimbabwean policy holders. Zimbabwean Old Mutual is independently constituted, with an independent board, and no South African money is involved. We’ve also had no objections from the Zimbabwean people,” he added.
Sonn said the subsidiary had held the investment since the 1970s and it remained crucial for shareholders’ money to be invested in Zimbabwe profitably for their benefit. Of the shares in the mining operation, he said Old Mutual held only a 5.2 percent interest and the mining was being conducted by a joint venture between various other parties.
“We are investigating right now,” Sonn promised.
Zimbabwe Gov’t to Relocate Thousands from Controversial Diamond Field
by Admin on November 16th, 2009
The Zimbabwe government decided to relocate thousands of families from the Marange diamond fields to allow for increased commercial extraction, setting a side $10 million for the relocation, the independent online news agency ZimOnline reported on Saturday.
The eastern-Zimbabwe diamond field has been the subject of much scrutiny as allegations of government-sanctioned mining and smuggling in the region have increased in recent years. In July, a Kimberley Process (KP) review mission cited such allegations, in addition to widespread human rights abuses committed by the Zimbabwe military, who are there under the premise of protecting of the field from illegal mining.
The South African-based news agency cites a statement by Zimbabwean government official Murisi Zwizwai that the $10 million will be used for the building of new houses and clinics. Zwizwai said the families would not be uprooted until the end of the agricultural season in March 2010.
A KP meeting earlier this month voted against removing Zimbabwe from its certification scheme, deciding instead to further monitor Zimbabwe’s mining operations.
Subdued Rough Diamond Trade in The U.S.
by Admin on November 16th, 2009
Rough diamond imports by the U.S. remained low in September. U.S. gross rough diamond imports totaled $22.09 million on imports of 14,142 carats, an average value of $1,562.28 per carat. Net imports stood at $6.41 million.
The U.S. exported $15.69 million worth of goods weighing 49,508 carats, as it exported lower value goods averaging $316.85 p/c.
Both imports and exports are far below last year’s figures, on the heels of the economic crisis that brought down rough diamond prices as well as consumer spending on diamond jewelry. Compared to August 2009, imports rose 51.6 percent by value, but fell 43.9 percent in volume. The average value of imports in August was $577.63.
Net imports rose 39.6 percent by value and 35.5 percent by value, maintaining the traditional rise in rough loose diamonds in September compared to August.
South Africa continued to be the leading source of rough diamonds to the U.S., supplying it with some $7.3 million worth of goods averaging $4,062.31 p/c. Botswana was the source of $4.3 million worth of goods and Angola shipped rough diamonds with a stated value of $3.69 million.
Nearly half of the rough diamond exports, $6.95 million, were to the UAE. Most of the rest were shipped to India and Israel.
