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July Vol 3, Business , Financial and Property Indaba

Zimbabwe faces diamond trade ban

Thu, Jul 30, 2009

An international diamond trade group, the Kimberley Process, has recommended that Zimbabwe be suspended from trading in the precious mineral over suspected illegal mining.

The recommendation was made by a Kimberley Process fact-finding team, which visited Zimbabwe last month to check its compliance with its trade rules.

The team said the country was in default, particularly at its richest diamond field in the east of the country, where the government had deployed soldiers and police to provide security to a state-owned mining company.

The Kimberley Process suspects massive illegal mining and smuggling from the field, including by the security forces.

As a result, the group has recommended in a report that the country be suspended from trading in diamonds for six months to allow it to sort out compliance.

Specifically, the Kimberley Process ordered the Zimbabwe government to withdraw the security forces from the area and put in place civillian security measures.

Huges diamond fields have been discovered in many areas in Zimbabwe lately, but much of the mining is shrouded in secrecy.

Finance Minister Tendai Biti told parliament two weeks ago diamonds could earn the country around US$600 million a month.

By Staff reporter and agencies

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