Maravi

(SUNDAY MAIL ZW) Government tightens diamond systems

Government tightens diamond systems
Saturday, 10 November 2012 20:30
Itai Mazire

The Government has formulated and adopted the Zim­babwe Diamond Policy (ZDP) that seeks to enhance transparency in the diamond trade and the benefi­ciation of gemstones.

The policy addresses loopholes that were being experienced in diamond exploration, mining, transportation, storage, valuation, marketing, beneficiation, value addition, capacity building and security.

According to the ZDP, several Govern­ment departments would be granted access to the financial records of all mining compa­nies involved in diamond activities.

According to Section 6 of the policy: “There shall be access to diamond trade and financial records of all mining companies involved in diamond activities by the Min­istry of Mines and Mining Development or its appointed agent(s) and other relevant arms of Government such as Treasury, the Zimbabwe Revenue Authority and the Envi­ronmental Management Agency.

“The Ministry of Mines and Mining Devel­opment will ensure that all diamond revenue is collected and remitted accord­ingly to Trea­sury.”

Mines and Mining Development Perma­nent Secretary Mr Prince Mupazvir­iho said the policy would ensure the coun­try’s dia­mond sector adheres to interna­tional prac­tices.

“The policy creates an environment of accountability that gives Zimbabwe an opportunity to attract local and foreign investment in the sector. The ZDP will tighten all leakages in the diamond sector,” he said.

The policy also proposes implementation strategies, indigenisation of the sector, set­ting up of a Sovereign Wealth Fund, offences and penalties for diamond compa­nies and indi­viduals who violate mining laws. According to Section 5.15, a quota of all locally produced rough diamonds shall be reserved for local beneficiation.

“There shall be appropriation of funds from diamond royalties collected by Trea­sury to the Sovereign Wealth Fund and in terms of the Mines and Minerals Act (Cap 21:05) as amended,” reads part of the policy.

“The funds accrued will be invested in other sectors of the economy to enable all Zimbabweans and future generations to ben­efit from the country’s diamond resources.”

Labels: DIAMONDS

posted by MrK @ 8:23 PM