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(HERALD) India blasts US over Zim gem ban

India blasts US over Zim gem ban
Sunday, 26 February 2012 00:00

India’s Gems and Jewellery Export Promotion Council (GJEPC) has blasted the United States sanctions against diamonds from Zimbabwe, saying the measures were hurting job creation in the south Asian country.

India has emerged a major market for Zimbabwean diamonds after industry watchdog the KimberlyProcess (KP) cleared for export gems mined in the Marange region. But GJEPC — India’s apex body of the gems and jewellry sector — said a decision by the United States to slap with sanctions two major Marange diamond mining companies despite the KP clearance was unhelpful.

“India has the potential to create more employment in the diamond and jewellery-manufacturing centre, provided the US lifts its ban on Zimbabwe diamonds,” GJEPC vice chairman Sanjay Kothari told Indian media.

The US added Mbada Diamonds and Marange Resources to the list of companies sanctioned under its Zimbabwe Democracy and Economic Recovery Act (ZIDERA) in December 2011.

The companies were apparently punished for being joint venture partners with the State-owned Zimbabwe Mining Development Company (ZMDC) which was already on the sanctions list.

Kothari said the move — which came after the United States backed the KP decision to clear the mines — was unjustified and called on the Indian government to take the matter up with its US counterparts.

“Zimbabwe has the right to legally sell its rough diamonds in the world market after getting clearance from Kimberley Process,” he said.

“But most of the big diamond companies in India do not want to expose their links with Zimbabwe because they are wary of US sanctions and its trade groups.

“However, we want to strongly urge the (Indian) central government to take up the issue with its US counterparts.”

Another GJEPC official, Chandrakant Sanghavi, added: “Zimbabwe diamonds are banned in US and Europe, which constitute around 45 percent of the world diamond jewellery market.

“If the US clears Zimbabwe diamonds, then Surat would need extra manpower to cater to the growing demand of these low-cost diamonds in the world.”

— Times of India/New Zimbabwe.com

Labels: DIAMONDS, INDIAN DIAMOND INSTITUTE, SANCTIONS, ZDERA

posted by MrK @ 4:42 AM