TAURAI MANGUDHLA
Zimbabwe’s diamond production fell 57% to 1.4 million carats in the first 8 months of the year, from 2.2 million carats realised in the same period last year as foreign currency and power shortages took a toll on the sector.
Despite monthly production doubling in August, the sector is underperforming, according to Ministry of Mines figures. Diamond production closed August at 195,135 carats, up from 99,195 carats in July after a huge leap in production by the state-owned Zimbabwe Consolidated Diamond Company (ZCDC).
The Ministry of Mine’s August monthly production figures put the ZCDC output at 141,345 carats, a 280% over the previous month’s figure. In value terms, the diamonds fetched US$12.3m, up from US$8.1m the previous month.
Diamonds were once touted as the wonder mineral that would bring the country out of its economic quagmire, but the sector has failed to deliver largely due to leakages, corruption, and gross mismanagement of mines. In August, Murowa produced 53,790 carats, down from 62,439 carats the previous month.
Despite the dramatic monthly surge in volumes, diamonds remain a problem child for Zimbabwe as last year’s half-year figure of 1.1 million carats fell to 800,000 carats in the same period this year.
However, there is renewed optimism in diamond mining as the government is negotiating a partnership deal with the Russian diamond giant, Alrosa, for mining and marketing of the precious stones.
Unfortunately, on 30 September the US Customs and Border Protection (CBP) issued five Withhold Release Orders (WROs) covering five different products, imported from five different countries, including Marange diamonds from Zimbabwe which the Americans claim are produced using forced labour.
“This action was based on information obtained and reviewed by CBP that indicates that the products are produced, in whole or in part, using forced labour,” the CBP said in a statement released in Washington DC.
“Under US law, it is illegal to import goods into the US that are made wholly or in part by forced labour, which includes convict labour, indentured labour, and forced or indentured child labour.
When sufficient information is available, CBP may detain goods believed to have been produced with forced labour by issuing a WRO,” the statement explained. According to Brenda Smith, Executive Assistant Commissioner, CBP Office of Trade, “CBP is firmly committed to identifying and preventing products made with the use of forced labour from entering the stream of US Commerce.
The effort put into investigating these producers highlights CBP’s priority attention on this issue. Our agency works tirelessly behind the scenes to investigate and gather information on forced labour in global supply chains.”
