Diamond cartel bans dealing in Zimbabwe’s diamonds

by Admin on November 16th, 2009

An international network of companies providing services that support the development of fair and competitive diamond and jewellery markets announced Monday that it was banning trade on all diamonds from Zimbabwe due to alleged human rights violations at a site where the precious mineral is being mined.

Saying the ban was with immediate effect, the Rapaport Group and the RapNet Diamond Trading Network cited “severe human rights violations” at the controversial Chiadzwa diamond fields in Zimbabwe’s Marange where the army has been accused of murder and forced labour.

“RapNet members should immediately remove all RapNet listings of diamonds originating from Zimbabwe. Firms and individuals that continue to trade in diamonds from Zimbabwe will be denied access to all Rapaport services,” the group said in a notice to its members.

RapNet generates the indexes from which diamond prices are derived.

The action by Rapaport comes a few weeks after Zimbabwe escaped censure by the industry’s control body, Kimberley Process (KP), despite a damning report by a KP review mission that visited the country in June.

The review mission recommended the suspension of Zimbabwe from world diamond trade until it improves controls at Chiadzwa amid reports of rampant smuggling of the precious mineral.

The mission also recommended the removal of the army from the mining site.

The KP, however, resolved at its meeting in Namibia last month to give Zimbabwe more time to improve mining methods to meet acceptable standards.

Illegal Diamond Dealers Move into Mozambique

by Admin on November 16th, 2009

 

His companion, a Malian, turns to me on this terrace in central Mozambique. “You want?” he whispers. Driven out of Zimbabwe’s eastern diamond fields by police, illegal diamond dealers now operate in this town ten minutes from Machipanda frontier post.You know you are in diamond country when you reach the border. “You want diamonds?” asks the official checking the serial numbers on our car engine. “I can get you one: 16 carats,” he promises.

Vila de Manica is not rich. Tea-bag-size sachets of washing powder are on sale in a dusty market. However, diamond money has changed the landscape here – literally. Dotted among the drab concrete buildings are houses freshly painted in yellow and purple. Coils of razor wire top the walls. There are satellite dishes, armed security guards.

Outside the Flamingo Restaurant four dealers order rounds of Manica beer. They speak bitterly of the brutality of Zimbabwean police.

The Marange fields were the scene of a frenzied diamond rush from 2006 to well into 2008. Schoolchildren threw their books into the bush and dug alongside their teachers. Dealers booked into the Holiday Inn in the nearby city of Mutare.

President Robert Mugabe’s security forces ended the free-for-all one year ago this month, moving into the fields with dogs and guns. Rights groups say 200 people were killed. The brutality nearly got Zimbabwe suspended from the Kimberley Process Certification Scheme. Earlier this month, Zimbabwe was told it has until June 2010 to implement a working plan to bring it up to international diamond trading standards.

But military abuses reportedly continue.

“Zimbabwe is very bad,” says a Somali dealer. He has a front tooth missing after a beating in Marange, he says. Police stole $8,000 he was carrying. “Our friend had both his legs broken two weeks ago. He lost $36,000,” claims a dealer from Mali.

The dealers say it’s easier operating in Mozambique. The police leave them alone if their passports and visas are in order. They travel to and from northern Nampula province. The Zimbabwean diamonds they deal in go to Dubai and then Asia. They say the stones are mostly industrial grade, used for machines.

In a clothes store, a Lebanese man in an Emporio Armani T-shirt says he’s from Essex, where his three children go to school. His brother has bought property in Vila de Manica. “Now I sell stones,” he says.

He looks at my cheap flip-flops and moves away. I am obviously not a serious buyer. It’s getting harder to smuggle Zimbabwe’s diamonds. The authorities have awarded contracts for Marange to two companies: Mbada Mining, a little-known local firm, and Canadile Miners, which has South African investors. They are investing heavily too.

There’s just one problem: According to a court ruling, the claim at Marange belongs to African Consolidated Resources, a company listed on the London stock exchange. Desperate for money – mines minister Obert Mpofu believes diamonds can bring Zimbabwe $600,000 a day – the government has gone ahead with mining, pending an appeal.

A pharmacy in Mutare is sparsely stocked, but they can sell you an electric diamond scale for $30.

Firm to Mine Marange, Zim Agrees to Monitoring Scheme

by Admin on November 13th, 2009

 

South Africa-based New Reclamation will begin mining for diamonds in eastern Zimbabwe this month in a joint venture with government-run Zimbabwe Mining Development Corporation, according to Voice of America news. New Reclamation will reportedly manage the mining of the diamond deposit through its company Grandwell Holdings Ltd. in partnership with Marange Resources Ltd. Part of the land the company will use is held in lease by African Consolidated Resources (ACR), which received court approval to return to the property and mine diamonds. The government however has refused access to ACR despite the court ruling.

Meanwhile, following the agreement to implement a Kimberley Process working plan at Marange there has been stern warnings from key players. Zimbabwe has agreed not to export Marange diamonds until the monitoring mechanism is established. The U.S. Department of State awaits full and expeditious implementation of such controls. The U.S. further expects that if the work plan is not thoroughly implemented, the KP will suspend Zimbabwe.

World Diamond Council chairman Eli Izhakoff said that the agreed upon monitoring plan will consist of rigorous and comprehensive scrutiny during the next 12 months, as the KP works closely with the Zimbabwe to achieve full compliance. “The ability of Zimbabwe to harness its natural resources, including diamonds, for the benefit of its people is our primary concern,” he said. “This is a challenging situation, but one in which determined and focused engagement provides the best chances for a successful outcome.”

Diamonds From Cote d’Ivoire Fund Hezbollah

by Admin on November 13th, 2009

 

Text report translated from French to English on how the New Forces in northern Cote d’Ivoire laundered diamonds for arms with Hezbollah:A recent investigation conducted by the U.S. State Department has confirmed not only the United Nations (UN) report of smuggled diamonds in Cote d’Ivoire, but has provided important details on the barter of trade for diamonds and arms. One week after the publication of a report by the UN group of experts in charge of monitoring the sanctions imposed upon Cote d’Ivoire, another investigation has confirmed the violation of the arms embargo, especially regarding underground transactions conducted for precious stones in northern Cote d’Ivoire.

The newspaper, Quest-France, revealed the violations and explained how the U.S. Department of State discovered “a ring of diamond laundering between Guinea and Lebanon through which the Hezbollah has been financing itself thanks to the many deals. The precious stones of the Lebanese Islamist Movement are reported to come from Guinea through Sierra Leone, but also from Cote d’Ivoire, which officially did not export any diamonds in 2008. However, the UN still reports arms purchases financed by the illicit sale of precious stones.”

The French newspaper also reported on the work being conducted by an expert on behalf of the UN regarding the funding of guerilla groups in Africa. It emerged that Cote d’Ivoire, namely the zone under the control of the former Ivorian rebels, is very much involved in this illegal diamond trade. The ring is reported to be controlled by a Lebanese who is close to Hezbollah and operates from the Odienne region extending from northern Cote d’Ivoire to Ouagadougou in Burkina Faso, which remains the cross-roads of this business. A Belgian diamond merchant also confirmed the existence of the Ouagadougou-northern Cote d’Ivoire route used for trafficking the precious stones.

If we are to believe the source, an Israeli businessman is also thriving from this profitable trafficking; that explains his many trips to the “country of men of integrity,” where he obtains his supplies of Ivorian gems. In return, he supplies arms to the New Forces, according to the same source. The involvement of Burkina Faso, a country whose president, Blaise Compaore, plays the role of facilitator in resolving the Ivorian crisis, has also been confirmed by the recent UN report. The document, in effect, denounced “the many deliveries of arms and ammunition from Burkina Faso in northern Cote d’Ivoire.”

While President Laurent Gbagbo proclaims that Cote d’Ivoire has resolutely turned over a new page on war, these UN and U.S. reports have come to confirm the position of all those who continue to question the reliability, and even the sincerity, of the Ouagadougou political accord. Do the underground transactions conducted from the stronghold of the New Forces,escape the Ivorian head of state, who has the habit of rallying his political opponents by warning them that he “sees their back” when they thought they were swimming under the water? Certainly not.

It is the same for Guillaume Soro, the leader of the former rebellion who became the prime minister with the signing of the Ouagadougou Accord and who must not be ignorant of what comes into the Defense and Security Forces at night. What does one say about Blaise Compaore, who, for some time now, has become “Mr. Good Offices” of the sub-region? Apparently, these clicking of weapons and stones do not seem to disturb him unduly in his delicate task of being the architect of peace.

TRADE ALERT: Rapaport Bans Zimbabwe Diamonds

by Admin on November 12th, 2009

 

 

The Rapaport Group and the RapNet Diamond Trading Network is implementing an immediate trading ban on all diamonds from Zimbabwe due to severe human rights violations in Marange. RapNet members should immediately remove all RapNet listings of diamonds originating from Zimbabwe. Firms and individuals that continue to trade in diamonds from Zimbabwe will be denied access to all Rapaport services.

UN Distributes Voter Lists in Cote d’Ivoire for Upcoming Election

by Admin on November 12th, 2009

The United Nations Operation in Côte d’Ivoire (UNOCI) began transporting provisional voters lists to polling stations across the country in preparation for the country’s upcoming presidential election. Cote d’Ivoire’s Independent Electoral Commission provided voter names to Young-Jin Choi, the head of UNOCI, who called the preparations an important step in reaching the end of the crisis that has divided the country since 2002.

The presidential election is planned for November 29, following four years of repeated postponements, although UN officials have voiced concern that this date could be pushed back, as well. Choi said he hoped that the remaining tasks in the electoral process, which include the printing and distribution of voter cards, would be completed quickly.

On October 29, the UN Security Council extended diamond sanctions on Côte d’Ivoire through October 2010, but pledged to review the measure again no later than three months after a free, fair and transparent presidential election is held. A group of UN experts recently found an absence of effective border controls in the country, enabling the rough diamond trade to continue from Côte d’Ivoire and extend almost seamlessly into Burkina Faso and Mali. There was additional concern that rough diamonds were being illegally exported through Guinea and Liberia.

U.S. Dpt. of State Issues Statement on Zimbabwe

by Admin on November 12th, 2009

 

 

The U.S. Department of State issued the following statement on Zimbabwe: In light of serious concerns about Zimbabwe’s compliance with the Kimberley Process (KP) rough diamond certification scheme, we await full and expeditious implementation of the stringent controls that were agreed upon at the KP plenary held in Swakopmund, Nambia on November 5 for the exportation of rough diamonds from Zimbabwe’s Marange fields.

The United States expects that if the work plan that obligates Zimbabwe to commit substantial effort and resources is not thoroughly implemented, the KP will suspend Zimbabwe’s status in the KP certification scheme. We further note that Zimbabwe agreed not to export Marange diamonds until the monitoring mechanism is established. In addition, the United States remains deeply concerned about human rights abuses in and around the Marange diamond fields of Zimbabwe.

The United States welcomes the progress made during the KP plenary regarding increased oversight for exports from Guinea, new measures regarding the identification of, and cooperation on, suspicious shipments and efforts to improve coordination on technical and development assistance.

We also urge prompt resolution of KP discussions on the critical role of respect for human rights in the administration of participants’ diamond-mining sectors, given that the KP itself was created to mitigate such abuses in nations facing conflict or internal strife.

We urge all within the Kimberley Process to demonstrate their full commitment to the principles upon which the KP was established.

Kimberly Process Chair Defends Recent Decision Not to Suspend Zimbabwe

by Admin on November 11th, 2009

 

Responding to critics of last week’s decision by the Kimberly Process Certification Scheme not to suspend Zimbabwe over charges of human rights abuses in the eastern Marange diamond field, outgoing Kimberly Process Chairman Bernard Esau said that the Harare government has done much to address problems in the Manicaland province district.

Esau added in an interview that diamonds from the field are not funding conflict and Harare needs help to comply with Kimberly standards.

But Mutare-based analyst Farai Maguwu of the Center for Research and Development said Esau’s explanation won’t keep independent groups from speaking out on Marange, where Human Rights Watch says the military in control has killed more than 200 people.

Conflict Diamonds’ Deadly Toll

by Admin on November 11th, 2009

 

 

They might end up as costly baubles on sale in shops around the world. But for some diamonds mined in Zimbabwe, the journey begins in massive illegal pit mines where men, women, and children are forced to work long days under the brutal authority of government troops, who took over the mine in a spree of bloodshed. Since February 2009, ZANU-PF has shared government power, but the military remains under its control.

The report, “Diamonds in the Rough,” also suggests that revenue from the gems enriches senior ZANU-PF officials and provides significant revenue to the Reserve Bank of Zimbabwe, which has underwritten some military operations. The Marange fields could potentially yield US$1.2 billion a year, according to one estimate, at a time when the country is broke, unable even to pay its teachers or for basic sanitation and health care, and begging the world for aid. The two other Zimbabwe diamond sites are deep mines run by private commercial enterprises.

After the Marange fields were discovered in 2006, they were open to anyone, and illegal mining and smuggling flourished. The army took control in October 2008 with an unrestrained assault, witnesses said. Troops in helicopters fired tear gas and machine guns at unarmed miners. Soldiers overran the fields and nearby villages. According to several villagers, they fired their AK-47 assault rifles indiscriminately, without warning. Over a three-week operation, more than 200 civilians were killed.

Since then, diamond mining - and smuggling - remain in the grip of the armed forces. The worst of the violence has ended, but Human Rights Watch found that the army continues to commit human rights violations, including beatings, torture, forced labor, and child labor in Marange.

“Zimbabwe’s new government should immediately end all human rights abuses in the Marange diamond fields and remove the army from the area,” said Georgette Gagnon, Africa director at Human Rights Watch. “All soldiers and police officers responsible for horrific abuses must be held to account.” The report also calls for a worldwide ban on diamonds from the Marange fields.

“Diamonds in the Rough” is based on two research missions to Zimbabwe in February 2009. Human Rights Watch researchers visited Harare, Mutare, and the Marange fields and interviewed more than 100 people - witnesses, local miners, local court officials, local community leaders, victims and relatives, lawyers, medical staff, soldiers, police, traditional leaders, and local human rights activists.

To States and Organizations that Are Major Consumers of Rough Diamonds

• Support initiatives to speedily reform and broaden the mandate of the KPCS to include human rights concerns at the core of its mandate.
• Guard against the purchase of rough diamonds without a certificate
• Take steps to inform consumers of polished diamonds that they should not buy, trade, or sell diamonds originating from conflict diamond sources.

Prosecutors Look Forward to Questioning Taylor

by Admin on November 10th, 2009

Charles Taylor ended 13 weeks on the witness stand Monday by rejecting allegations that he commanded and controlled rebels who murdered and mutilated thousands of civilians during Sierra Leone’s 1991-2002 civil war. Prosecutors say Taylor provided arms, ammunition and other support to Sierra Leone rebels in return for diamonds mined by slave laborers, in one case, smuggled out in a mayonnaise jar.

“There are no diamonds running in and out (of Liberia) by the mayonnaise jar-full,” Taylor said on what was expected to be his last full day of testifying in his own defense at his war crimes trial.  Taylor, 61, also rejected other claims included in an intelligence report compiled for an unnamed Western power. In the report were allegations that he had a secret Swiss bank account, an arms bunker underneath his presidential mansion in the Liberian capital, Monrovia, that he took kickbacks in cash and weapons for timber concessions and even that he ran an escort agency.

“The president of Liberia involved in call girls? That is nonsense,” Taylor said.

Taylor is expected to complete his testimony on Tuesday, giving prosecutors their first chance to publicly question him. His attorney, Courtenay Griffiths, told judges he was on “the last lap” of questioning.

Prosecutors are looking forward to grilling the former president of Liberia, who is the first African head of state indicted while in office. “We’ve been waiting patiently for our turn to test Mr. Taylor on his version of events,” the court’s acting prosecutor, Joseph Kamara, said in a statement.

“We will directly challenge Mr. Taylor in three ways: on the accuracy, the truthfulness and the completeness of his testimony,” he added.

Taylor is accused of 11 counts of murder, rape, sexual slavery, cruelty, forced labor and recruiting child soldiers as he supported rebels in neighboring Sierra Leone. He has denied all allegations.

Taylor’s is the last trial at the Special Court for Sierra Leone. Eight other rebel leaders have been tried, convicted and sentenced to prison terms ranging from 15 to 52 years.