(NEWZIMBABWE) Diamond firm blasts US sanctions
Diamond firm blasts US sanctions22/03/2012 00:00:00
by Phyllis Mbanje
A DIAMOND mining company operating in Marange says sanctions imposed by the United States have put at risk the livelihoods of 100,000 people connected with its operations in the country.
The US slapped Mbada Diamonds with sanctions last December, punishing the company for going into a joint venture with the state-run Zimbabwe Mining Development Corporation (ZMDC). But in a statement Thursday, Mbada said there action showed that the US had problems with “an African-owned company”.
The company said the sanction would adversely affect some”100,000 people participating directly or indirectly in the diamond industry through entrepreneurship, employment and service provision to the diamond industry”.
"Mbada Diamonds cannot ignore the fact the US, the biggest global consumer of cut and polished diamonds, has selectively sanctioned the biggest mining revenue generating entity in Zimbabwe..." the company said.
ZMDC was placed under sanctions after being named among organisations allegedly financing rights abuses by President Robert Mugabe and his Zanu PF party.
Mbada was added to the sanctions list because under “U.S. law, a company that is 50 percent owned by a sanctioned company is itself also regarded as a sanctioned company.”
However the company said there was no justification for placing it under sanctions. Adding the US ignored the work it had done in helping ensure operations in Marange comply with guidelines set by industry watchdog, the Kimberly Process.
"Without giving due process, armed only with rumuors and bad intelligence, the US applied sanctions on Mbada,” the company said.
Finance Minister Tendai Biti – who expects diamond revenues to contribute US$600 million to his budget this year – has also said Zimbabwe should be allowed to freely sell its diamonds.
"Zimbabwe is a poor fragile economy and must therefore be allowed to sell and benefit from its resources,” Biti said.
He said although there had been concerns over transparency and accountability regarding the Marange operations these have now been addressed adding the country no longer operated “outside the Kimberly Process Certification Scheme.”
Mines Minister Obert Mpofu also warned that the sanctions would only help encourage illicit trade in diamonds mined in Zimbabwe.
Labels: BLOOD DIAMONDS, DIAMONDS, KIMBERLEY PROCESS, MARANGE DIAMOND FIELDS, OBERT MPOFU, SANCTIONS, ZDERA, ZMDC
posted by MrK @ 1:31 PM
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