Mugabe vows to sell diamonds to revive economy

Jul 13, 2010, 13:28 GMT

Harare - Zimbabwean President Robert Mugabe on Tuesday declared that the country's disputed Chiadzwa diamond fields could supply 25 per cent of the world's diamond demand.

Human rights groups have charged that gems originating from Chiadzwa are 'blood diamonds' since a military operation in 2008 to drive out 35,000 illegal miners and take over the mine reportedly claimed 200 lives.

A export ban was subsequently imposed by the Kimberley Process, a global watchdog body on trade in diamonds used to fuel conflict, on the export of gems from the field which geologists say is the biggest alluvial diamond find in a century.

Mugabe made the remarks during the opening of parliament in Harare, and a day before the stakeholders in the KP are due to meet in St Petersburg, Russia to discuss issues surrounding Chiadzwa.

A KP monitor last month reported that Zimbabwe had met minimum conditions for the lifting of the ban. However, the human rights groups that belong to the civil society segment of the KP, accuse the military of controlling large areas of Chiadzwa and running a major diamond smuggling operation.

'The Chiadzwa fields are projected to contribute 25 percent of global supply of diamonds,' Mugabe told parliament.

'There are huge prospects for the diamond sector to emerge as the major driver of economic turnaround for the country still struggling to emerge from economic collapse in 2008.

Those ill-disposed to us have not given up on the use of absurd conditionalities and other dilatory tactics to block the sale of our diamonds. Let there be no doubt about our resolve to sell out diamonds for the benefit of our people.'

There has been deep suspicion over the government's handling of Chiadzwa, after a parliamentary investigative committee uncovered that mining licences were corruptly issued to two South African-based companies that have been mining on part the site for nearly a year. One of the companies attempted to hold an illegal auction in January, and the other is reported by the KP monitor to have run out of money. Recently they were joined by a previously unknown Chinese company.

Human rights groups have been warning that the proceeds from Chiadzwa will be pocketed by Mugabe and his cronies and will be used to maintain a regime of brutal repression.