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(HERALD) Govt drafting legal, policy frameworks for diamond sector

Govt drafting legal, policy frameworks for diamond sector
Herald Reporter

GOVERNMENT is working on a legal and policy framework for the local diamond sector to make it mandatory that a minimum percentage of the mineral is reserved for local beneficiation works, a Cabinet minister told the House of Assembly last week. The Minister of Mines and Mining Development, Cde Amos Midzi, said his ministry was already in dialogue with local diamond producers.

The minister was responding to a report by the Portfolio Committee on Mines, Energy and Tourism on the gold and diamond sector, which had been presented by Highfield Member of House of Assembly, Mr Pearson Mungofa (MDC).

"All local producers agree to the retention of a quota for the local cutting and polishing factories. However, the ministry is drafting legal and policy frameworks for the local diamond sector wherein it will be mandatory that a minimum percentage of local diamond production be reserved for local beneficiation works," said Cde Midzi.

He said his ministry was committed to tightening security on the mining and trading of diamonds so that the minerals were marketed through the normal channels.

"To ensure security and accountability of production, the ministry has regional offices to ensure greater outreach by its technical officers to the mining project for monitoring and surveillance," he said.

The minister said his ministry was talking to the central bank on the resuscitation of the Gold Pricing Committee.

Mr Mungofa welcomed Cde Midzi’s response but said there was still need to define who owns the diamonds, especially those being mined by private companies, as was the norm in Botswana and DRC.

"The State should have a stake in these diamond mining companies so that it is fully aware of what is happening on the ground. This will ensure that the State realises maximum benefit from the country’s national resources," said Mr Mungofa.

"The Minerals Marketing Corporation of Zimbabwe is only informed on the progress of the extraction and does not know what would be happening in between during extraction and processing. This means private companies will declare what they want to, so Government has to tighten its hold for it to realise maximum benefit from these mineral resources."

Labels: DIAMONDS, THE HERALD, ZIMBABWE

posted by MrK @ 4:34 AM