European Union revokes sanctions to Zimbabwe’s diamond firm

via European Union revokes sanctions to Zimbabwe’s diamond firm—report | MINING.com by Cecilia Jamasmie | September 17, 2013

The European Union is withdrawing all sanctions against the state-run Zimbabwe Mining Development Corporation (ZMDC) following increasing pressure from members, especially from Belgium, the global diamond trade centre.

According to a diplomat quoted by Reuters, the EU has “begun the process of delisting” ZMDC from the list of companies affected by the body’s sanctions, despite concerns over alleged fraud in the July election that kept President Robert Mugabe in power.

Zimbabwe’s diamond industry has been fraught with controversy both domestically and internationally due to accusations of human rights abuses and corruption.

Last year, Zimbabwe’s Deputy Mines Minister, Gift Chimanikire, confirmed an army-owned company holds a 40% stake on Anjin, one of the most lucrative diamond concessions in the country.

Days later it was reported that a Chinese diamond mogul have ploughed $100 million into the African country’s Central Intelligence Organisation (CIO) to fund covert operations against the opposition.

And early this year, the country’s Finance Minister Tendai Biti accused diamond firms of failure to pay tax revenues in full to the authorities, claiming only $40 million out of an expected $600 million reached government coffers in 2012.

Mugabe has repeatedly claimed the sanctions only affected ordinary people, while the EU says the embargo never meant to affect the country, only individuals responsible for human rights violations.

The U.S., Canada, Australia and New Zealand also have their own-targeted measures against the African leader and his inner circle.

ZMDC operates five joint-venture mines in the rich Marange diamond fields, producing eight million carats last year and generating $685 million in exports.

The nation’s total diamond production from Marange increased from 8,7 million carats in 2011 to 12 million carats last year. This year, production is expected to rise further reaching over 17 million carats.

COMMENTS

WORDPRESS: 5
  • comment-avatar
    Lindy Forster 7 years ago

    Have they asked where all the revenue from the sale of diamonds is going and why Japan has to give millions in support of the WFP to feed the starving in Zimbabwe?
    My mind boggles.

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    Lindy the Belgians are doing it for their own bellies. Its their business interest ,for their food, their luxury etc. They know very well how the diamond money is used by Zanupf to fund its operations against the people of Zimbabwe. Its not only Mbeki and the other ANC leaders harvesting Zimbabwean diamonds profits, there are many others too, Europeans, Israelis even some Americans. The only people who get nothing from the diamonds are those from the Marange area where the diamond is found.

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    Africanson 7 years ago

    Sanctions against ZANU, MDC, Zimbabwe or anyone else is evil. The idea is wicked and immoral. You can not say “Support me or i will sabotage you to death”. We must take stock of the effects of those sanctions to thge country especialy to the valnerable poor souls. Hate sanctions and i hate people who advocate for dem sanctions.

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      You may hate whom you wish, we on the other hand wish you would actually investigate whom these sanctions actually affect rather than bandying about hate speech which is rather unhelpful and very typical of ZANU policy.

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    Sanctions are not imposed 2 a well functioning gvt or leadership bt is a measure 2 reverse evildoing,though the poor are the most affected.Such that they stand 2 fight evil and be prosperous.