Maravi

(NEWZIMBABWE) Mbada Diamonds: the facts 'they' won't tell you

Mbada Diamonds: the facts 'they' won't tell you
28/03/2012 00:00:00
by Staff Reporter

THE discovery of large diamond deposits in eastern Zimbabwe has grabbed international headlines. Alleged rights abuses when the army moved in to drive off illegal miners gave hostage to fortune as hostile foreign governments, and NGOs they control, sought to prevent the country from selling the precious stones internationally.

Three diamond companies doing the mining in Marange in partnership with the Zimbabwe government face accusations of opaque dealings, and two have been placed on sanctions by the United States of America.

Mbada Diamonds is one of those affected companies, and below, they explain briefly their operations in a bid to dispel some myths peddled by opponents of Zimbabwe’s diamond industry:

MBADA DIAMONDS FACTS

1. SHAREHOLDING

# Parity Shareholding between the Government of Republic of Zimbabwe through Zimbabwe Mining Development Corporation (ZMDC) through Marange Resources – a wholly owned ZMDC subsidiary – and The New Reclamation Group (South Africa) through Grandwell Holdings (Mauritius).

2. FOUNDING

# Mbada Diamonds was Founded in August 2009

3. MOTTO

# Harnessing Diamonds for the Zimbabwean People

Justification of Mbada Diamonds Motto: "Harnessing Diamonds for the People" is evidenced through its fiscal delivery track record and the following factual performance information.

a. In one year, Mbada Diamonds won the Best Mining slot in Zimbabwe.

b. In one year, Mbada Diamonds contributed the most mining revenue to the national fiscus.

c. In one year, Mbada Diamonds contributed more money to the national fiscus than all money contributed by the mining sector since 1980.

d. Mbada Diamonds declares dividends monthly in order to alleviate the fiscal stranglehold and pressure currently being experienced by our country, Zimbabwe.
4. DIAMOND PRICING

# Pricing of diamonds is governed by a multiplicity of factors ranging from, but not limited to, international diamond market demand, global financial environment, geo-political factors surrounding the diamond source (eg. sanctions), diamond production costs, quality of diamonds produced etc.

# To that end, diamond pricing is variable, illusionary, perceptional and in some cases outright volatile.

# Constantly, Mbada Diamonds has strived to achieve the best possible prices on the diamond market, albeit in very hostile marketing environments, aggravated by the sanctions regime.

# Just to put on record when Mbada Diamonds started mining operations , Zimbabwean Diamonds were selling at paltry figures of approximately US$18 per carat of run of mine (ROM) and that is just about two years ago.

# However, through an extensive marketing and an aggressive corporate plan, Mbada Diamonds managed to achieve peak prices of up to US$70 per carat of runoff mine (ROM) in less than one year.

5. MBADA DIAMONDS’ DIRECT CONTRIBUTION TO THE ZIMBABWE NATIONAL FISCUS

# 50% of the Declared Dividend on a Monthly Basis

# 15% of Royalties are derived from Gross Revenue

# 5% of Depreciation Fees are derived from Gross Revenue

# 45% in Corporate Taxes

Salaries and Benefits for Mbada Diamonds Employees, without a doubt, are the highest in Zimbabwe. From the lowest level worker to the highest paid executives, everyone gets decent salaries, which make them positively identify as business partners and not mere workers.

6. MBADA DIAMONDS CORPORATE SOCIAL RESPONSIBILITY (CSR) PROGRAMMES

# Construction/Rehabilitation of Community Schools

# Construction/Rehabilitation of Community Road Networks

# Clean Water Delivery through extensive borehole drilling programmes

# Continuous support of programmes aimed at alleviating environmental degradation and anti-poaching activities

# Supporting efforts towards the creation of a conducive security environment in the entire Marange Diamond Fields

# Construction of decent houses for relocated families from Mbada Diamonds’ mining area, as well as, holistic support of the affected families to resettle in a dignified manner

# Provision of bursaries for high performing students without access to financial support in some special deserving cases

# Financial contributions towards programmes which are of national interest to Zimbabwe and the Zimbabwean People

# Financial support of certain institutions catering for the deprived and less fortunate citizens of Zimbabwe

7. ACCOUNTABILITY

# All Financial Results for Mbada Diamonds are audited by an Independent Accounting Firm: Their report satisfies the requirements of all the stakeholders involved

# Mbada Diamonds auditors are KPMG

# Mbada Diamonds is Kimberly Process Certified

# The Zimbabwean Treasury has increased its revenue expectations based on increases in diamond production from Mbada Diamonds. For the record Mbada Diamonds does contribute more revenue to the national fiscus than any other mining concern in Zimbabwe

8. VALUE ADDITION

# Without a doubt, Mbada Diamonds’ model of operations is economically efficient and has greatly benefitted all Zimbabweans from all facets of society

# In excess of 70 percent of all revenue generated by Mbada Diamonds is consumed within Zimbabwe and no other mining outfit has ever matched or does match this factual statistical reality

# Zimbabwe has experienced significant outflows of capital and investment since the year 2000; however, Mbada Diamonds has constantly increased production levels and investment which in turn has boosted government tax revenues, ultimately benefitting all Zimbabweans

# Many jobs have been created as of 2009 when Mbada Diamonds was founded, and thousands more in related industries including construction, catering services, telecommunications, and logistical/transport services

# One of the biggest recipients of Mbada Diamonds revenue has been the civil service. With the socio-economic and political sanctions placed on Zimbabwe over the years, tax revenues have significantly decreased. Mbada Diamonds has done its fair share of alleviating an unfortunate development

9. DIAMOND BENEFICIATION PROGRAMME

# Through one of Mbada Diamonds’ board resolutions of February 2012, it was resolved that Mbada Diamonds should take a leading role in making diamond beneficiation in Zimbabwe become a reality

# Mbada Diamonds is targeting an ultimate figure of 100,000 people who should directly or indirectly participate in the diamond industry through entrepreneurship, employment and direct service provision to the diamond industry

# Mbada Diamonds, to Zimbabweans, should become a partner in economic independence and sovereign freedom for the people of Zimbabwe. Resources from Zimbabwe must be controlled by Zimbabweans, owned by Zimbabweans, managed by Zimbabweans, marketed by Zimbabweans and sold by Zimbabweans.
10. OPERATIONAL SECURITY

# Mbada Diamonds is a commercial enterprise and not a Non-Profit making institution or organisation

# To that end, it is pertinent for it to effectively secure and guard its resources for a sustainable and forward looking future. Yes, Mbada Diamonds has very effective security but that security is aimed at protecting the resource and delivering all the advantages to all the stakeholders in the process

# Mbada Diamonds’ security programme is now one of the most sophisticated if not the most sophisticated in Zimbabwe. Without effective security, Marange would descend into Armageddon on earth, as illustrated by the plus or minus 50,000 foreign and local artisanal miners who used to ply the Marange Diamond Fields before the onset of formal commercial diamond mining.

Ironically, this type of “free for all” mining did not attract any civic or international sanctions as it was deemed through commission or omission to be “Kimberly Process (KP) Compliant” mining operations

# No-one has ever mentioned the fact that prior to the onset of commercial mining, in Marange, which was pioneered by Mbada Diamonds, diamond mining activity was at best chaotic. Everyone seems to have forgotten that due to illegal mining, the Marange Diamond Fields had become a haven for all sorts of criminal elements both domestic and international

# Rampant criminal activity had reduced the area to a Wild West

# Mbada Diamonds’ security staff does go through a rigorous training regime which is aimed at securing the precious resources and at the same time inculcate very high levels of professionalism and operational restraint

# Mbada Diamonds as a corporate entity will tirelessly work towards preserving a professional image, which exemplifies the company as a world class diamond outfit

11. WHY IS MBADA DIAMONDS UNDER SANCTIONS?

Economic Independence is Never delivered on a Silver Platter, you have to Work and Fight for it!

# According to the United States, Mbada Diamonds is under sanctions because it is "involved in developing the Marange Diamond Field, have been added to the specifically designated entities (sanctions) list because of their ownership and for no other reason” – Sharon Hudson Dean, Counsellor for Public Affairs at the US Embassy, Harare

# This ownership is directly linked to the people of Zimbabwe, no other entity but the people themselves

# Without giving due process, armed only with rumours and bad intelligence, the United States applied sanctions on Mbada Diamonds just weeks before taking the Chairmanship of the Kimberly Process Certification Scheme (KPCS)

# The United States and the European Union have never deemed it necessary to proactively engage with Mbada Diamonds stakeholders in order to understand to what lengths the mining house has gone out of its way in contributing towards putting sanity into the diamond industry, not only in Zimbabwe but globally

12. RESPONSE AND OPINION OF MBADA DIAMONDS

Mbada Diamonds operations are a wholly owned African initiative. Mbada Diamonds together with all its stakeholders can only assume that the United States of America and the European Union have a significant problem towards an African owned company playing a significant role in the diamond industry. This assertion is premised on the following:

# Mbada Diamonds does not employ secretive organisations or individuals to help it with mining operations. Mbada Diamonds employees, some of the brightest individuals in the diamond industry, are in majority Zimbabwean

# Mbada Diamonds is one of a handful of companies which has managed to bring back home the intellectual capacity and skills lost through the brain drain problem faced by most African countries

# Mbada Diamonds successfully relocated the ACTUAL inhabitants of Marange into professionally built homes, which do not lack any of the modern amenities associated with modern housing

# Through its Corporate Social Responsibility initiatives, Mbada Diamonds has become a beacon of corporate citizenship. No corner of Zimbabwe has been left untouched by its programmes

# Mbada Diamonds cannot ignore the fact that the United States, the biggest global consumer of cut and polished diamonds, has selectively sanctioned the biggest mining revenue generating entity in Zimbabwe, which has had a significant positive effect on the lives of many Zimbabweans

13. WHY SO MUCH MBADA DIAMONDS BASHING?

# Mbada Diamonds does find itself at the center of anti-progress, retrogressive, jealously and outright anti-Zimbabwe and to a certain extent anti-African agenda. What is wrong in mining a mineral - in this case diamonds – and consciously alleviate the suffering of the Zimbabwean people?
14. WHO ARE THE DETRACTORS’?

# Both local and foreign

15. WHAT IS THE DETRACTORS’ MODUS OPERANDI?

# Both Covert and Overt

# Spreading of false rumours

# Intimidation and manipulation

# Spreading of outright lies

Labels: MARANGE DIAMOND FIELDS, SANCTIONS

posted by MrK @ 3:57 PM