Zimbabwe lashes out at diamond industry

Around 30 percent of Zimbabwe’s economy comes from minerals but the country’s Mining Minister says domination by one of the industry’s biggest players—and compliance issues—are preventing the African nation from fulfilling its potential

Controversial Zimbabwean Minister of Mining, Obert Moses Mpofu, has taken a swing at one of the world’s largest diamond companies, De Beers, saying he would “destroy them” if they refused to co-operate with the Government.

“De Beers have tried to block Zimbabwe from the market,” he told the Next Generation Mining Africa Summit 2011 last week. “De Beers have frustrated and influenced Zimbabwe sales.”

Mpofu was responding to a question posed to him by De Beers executive, Sakhile Ngcobo, about the co-operation between Zimbabwe and the industry leader.

Mpofu told attendees at the Next Generation Mining Africa Summit 2011, which was held in Cape Town, that he was determined to break De Beers’ near monopoly of the diamond market.

“Believe me when I say that Zimbabwe is going to be a big player in the diamond industry. We are the only country not to benefit from its minerals and it is time to put a stop to this. De Beers will have to allow us into the market or we will destroy them.”

Mpofu later softened his approach, adding that “I may have been harsh with De Beers, but it is a fact”.

However, he reserved some of his firepower for the KPCS (Kimberley Process Certificate Scheme) which is designed to certify the origin of rough diamonds from sources that are free of conflict funded by diamond production.

“We have done everything in our power to meet the minimum standards of the KPCS,” Mpofu told the three-day Summit, which is hosted by GDS International. “There has never been such compliance in Zimbabwe.”

Zimbabwe’s compliance was just one of the issues discussed by some of the leading voices in the global mining sector, including Willie Sweta, Chairman Mwembeshi Resources & Advisor to Zambezi Resources; Joyce Aryee, CEO of Chamber of Mines, Ghana; Johan Oelofse, COO of Great Basin Gold and Piet van Straaten, VP Geology and Exploration for Gold One.

Other topics at the closed-door summit included changing regulations in the African mining sector, managing social risk in the next decade and rockfall mitigation in opencast mines.

Next Generation Mining Africa Summit 2011 is an exclusive C-level event reserved for 100 participants that includes expert workshops, facilitated roundtables, peer-to-peer networks and co-ordinated meetings.

Another Next Generation Mining Africa Summit takes place in Cape Town in November 2011.

For more information, visit www.ngminingsummit.com.