Zimbabwe Diamonds Cause Rifts in Industry

Diamond traders around the world have had wide ranging-reactions to the recent Kimberly Process recertification of Zimbabwe and Zimbabwe’s subsequent sale of 900,000 carats of controversial diamonds.  While one major US diamond trading network responded in outrage, African and Asian trading groups have seen the reemergence of Zimbabwe as a path to profit.

Zimbabwe has recently faced sanctions and international scrutiny after widespread claims of human rights abuses in their Marange district diamond fields came to light.  It’s recent recertification and reemergence has surprised many rights activists who believe that foul play in the Marange mines continues.

With the help of the Kimberley Process, Zimbabwe auctioned off 900,000 carats of Marange-district diamonds in their first official sale of diamonds from this notorious diamond district since November.

Only hours later, the New York-based Rapaport Diamond Trading Network (RapNet), an international network of over 10,000 diamond buyers and suppliers, implemented a ban on Zimbabwe gems, vowing to expel any member who knowingly bought or sold Marange-mined diamonds. 

In statements to the press, Rapaport has made it clear that although a limited number of Marange diamonds have been approved for trade by the Kimberley Process, its members will be expected to avoid them completely.

Mr. Rapaport spoke out against the Kimberley Process earlier this year when the international diamond organization initiated negotiations with Zimbabwe in an effort to lift their suspension.  He completed a three-day

“The Kimberley Process is a politicized government-controlled initiative that is incapable of eliminating human rights violations in the diamond sector, “Rapaport said.

Despite claims by Human Rights Watch activists that the RapNet diamond ban will influence consumers and traders to be wary of Zimbabwe diamonds,  Zimbabwe officials and have called the ban “inconsequential”.  

Obert Mpofu, Zimbabwe’s Minister of Mines called the Rapaport Diamond Trading Network a “lunatic organization which people and global market players should not take seriously.” He reiterated that the country had been officially cleared by the Kimberley Process to sell diamonds and said that human rights groups are spreading false information. 

 “The bogus US organization utters rubbish. You might be aware that America, the European Union, and the United Kingdom have made every effort to make Zimbabwe fail,” Mpofu said.

The African Diamond council has backed the Zimbabwe government as well, saying that it has no problems with Zimbabwe’s raw diamonds.  A delegation from the Association of African Diamond-Producing Countries approved the diamonds earlier this month as clean and legitimate.

Indian diamond traders are also eager for Zimbabwe to reenter the diamond playing field.  Some 1,500 Indian diamond merchants just announced their plan to establish a new Surat-based diamond sourcing company and have named Zimbabwe as one of the main countries they home to begin trading with.

“We will sell our stones to countries where they are welcome,” said Minister Mpofu. “We have countries like Russia, China, India and other Asian countries where we can market our diamonds."