Govt warns miners against holding gems ift.tt/1DMRSE8 Buyers evaluate diamonds on auction at the country’s new international dimaond buying centre in Harare Business Reporter GOVERNMENT has threatened unspecified action against local diamond miners who will not take all gems for public auctioning. This comes as the Government has completed setting up an international diamond buying centre, located at the Minerals Marketing Corporation of Zimbabwe in Harare. Mines and Mining Development Minister Walter Chidhakwa said the Government had studied experiences of other countries in diamond auctioning. As such, Botswana-registered firm First Element Diamond Services was assigned to set up the first domestic international diamond buying centre. “Any company must understand that we (Government) are 50 percent shareholders and sit (on boards of diamond miners) on behalf of our people and will not tolerate, for any reason, companies holding diamonds; to ensure all diamonds are brought here for auction,” he said. This is meant to ensure consistency on volumes and quality diamonds, critical to building the reputation of the diamond buying centre. Minister Chidhakwa said the Government would not tolerate a situation where miners sell diamonds in “board rooms”. He said the Government sought to optimise returns from the gems to uplift the lives of its people. Arguably, a domestic international diamond exchange has become more important following seizure of local gems on spurious grounds in Belgium. South African firm, Amari Platinum, obtained an ex parte order ruling to attach local gems on auction in Belgium after a contract dispute with Government. The firm had its concession to exploit platinum on the Great Dyke cancelled by Government over lack of progress in developing the project. In the wake of the order to attach the 500 000 carats worth about $45 million, it has become risky to continue marketing the gems outside Zimbabwe. The South African platinum mining company had sued for $500 million for breach of contract. Fears abound that similar litigation may ensue. Minister Chidhakwa said the difficulties in Belgium had spurred Government to move with speed to bring its local diamond exchange plans to reality. One hundred and forty international buyers are expected to participate in a tender for about 200 000 carats of diamonds on the local exchange. This is the first such tender involving all the country’s six major producers of gems. The tender opened on Monday last week and will run for 10 working days. Until recently, Zimbabwe sold its diamonds in Belgium and Dubai. First Element Diamond Services country manager Mr Tim Wilkes said earlier local auctions entailed individual firms selling to buyers on different occasions. The firm had earlier run six tenders for Government in Dubai and Antwerp. Mr Wilkes said the international diamond buying centre located at MMCZ matched or exceeded standards of reputable diamond mining exchanges. “We want to make this (diamond buying centre) a success; we would like to make Harare an international (diamond) buying centre,” Mr Wilkes said. First Element has also made recommendations to Government for all activities with bearing on diamond marketing to be housed under a single roof. “It (the tender) is going well, all the buyers are very pleased with the facility, so far it has been very successful,” Mr Wilkes said last Thursday. He said the last domestic auctions did not do well since 80 percent of the stones were industrial diamonds, which generally fetch lower prices. Minister Chidhakwa said “what we have come up with lives up to the standards if not better than reputable exchanges such as Dubai, Antwerp and Shanghai”. The diamond buying centre has 12 viewing rooms equipped with state of the art apparatus used for assessment of diamonds. The minister said, ideally, such facilities should have 18 to 20 diamond viewing rooms. Business Reporter GOVERNMENT has threatened unspecified action against local diamond miners who will not take all gems for public auctioning. This comes as the Government has completed setting up an international diamond buying centre, located at the Minerals Marketing Corporation of Zimbabwe in Harare. Mines and Mining Development Minister Walter Chidhakwa said the Government had studied experiences of other countries in diamond auctioning. As such, Botswana-registered firm First Element Diamond Services was assigned to set up the first domestic international diamond buying centre. “Any company must understand that we (Government) are 50 percent shareholders and sit (on boards of diamond miners) on behalf of our people and will not tolerate, for any reason, companies holding diamonds; to ensure all diamonds are brought here for auction,” he said. This is meant to ensure consistency on volumes and quality diamonds, critical to building the reputation of the diamond buying centre. Minister Chidhakwa said the Government would not tolerate a situation where miners sell diamonds in “board rooms”. He said the Government sought to optimise returns from the gems to uplift the lives of its people. Arguably, a domestic international diamond exchange has become more important following seizure of local gems on spurious grounds in Belgium. South African firm, Amari Platinum, obtained an ex parte order ruling to attach local gems on auction in Belgium after a contract dispute with Government. The firm had its concession to exploit platinum on the Great Dyke cancelled by Government over lack of progress in developing the project. In the wake of the order to attach the 500 000 carats worth about $45 million, it has become risky to continue marketing the gems outside Zimbabwe. The South African platinum mining company had sued for $500 million for breach of contract. Fears abound that similar litigation may ensue. Minister Chidhakwa said the difficulties in Belgium had spurred Government to move with speed to bring its local diamond exchange plans to reality. One hundred and forty international buyers are expected to participate in a tender for about 200 000 carats of diamonds on the local exchange. This is the first such tender involving all the country’s six major producers of gems. The tender opened on Monday last week and will run for 10 working days. Until recently, Zimbabwe sold its diamonds in Belgium and Dubai. First Element Diamond Services country manager Mr Tim Wilkes said earlier local auctions entailed individual firms selling to buyers on different occasions. The firm had earlier run six tenders for Government in Dubai and Antwerp. Mr Wilkes said the international diamond buying centre located at MMCZ matched or exceeded standards of reputable diamond mining exchanges. “We want to make this (diamond buying centre) a success; we would like to make Harare an international (diamond) buying centre,” Mr Wilkes said. First Element has also made recommendations to Government for all activities with bearing on diamond marketing to be housed under a single roof. “It (the tender) is going well, all the buyers are very pleased with the facility, so far it has been very successful,” Mr Wilkes said last Thursday. He said the last domestic auctions did not do well since 80 percent of the stones were industrial diamonds, which generally fetch lower prices. Minister Chidhakwa said “what we have come up with lives up to the standards if not better than reputable exchanges such as Dubai, Antwerp and Shanghai”. The diamond buying centre has 12 viewing rooms equipped with state of the art apparatus used for assessment of diamonds. The minister said, ideally, such facilities should have 18 to 20 diamond viewing rooms.
Posted on: Sun, 02 Nov 2014 22:21:23 +0000
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