Zimbabwe KP Suspension will Lead to More Human Suffering
December 18, 08Though we are generally supportive of the NGOs Global Witness and Partnership Africa Canada (PAC), their calls for the suspension of Zimb
In Zimbabwe, not a single government crony, military official, corrupt miner, or other killer of innocent diamond diggers is using the KP in Harare. All the country’s diamonds from its informal sector are smuggled out – with no exceptions – as we wrote about in last week’s memo.
Also mentioned last week, and what we want to elaborate on this week, is Rio Tinto’s 78 percent-owned Murowa Diamond Mine near Zvishavane in southern Zimbabwe, which is not involved with the government-instigated violence going on in the country’s diamond fields in the Northeast. Diamonds from Murowa (including some of its old inventories) are the only legal – and quite distinguishable – Zimbabwean goods on the market. In fact, Rio Tinto has been, for quite a while, the only legal exporter of rough diamonds from Zimbabwe.
In comparison, there may have been three KP certificates issued from non-Rio Tinto sources. These goods went to Dubai and South Africa. These may have been proper goods from official tenders or government sales. However, whoever exported as such in 2007 ceased doing so in 2008.
Suspending Zimb
However, in the formal mining sector, some 1,500 people working at Murowa’s three kimberlite pipes and in the nearby community are dependent on the mine. These locals earn money, get food, have access to health care and have decent shelter. Calling for Zimb
One NGO official said to me “let Rio Tinto simply stockpile the goods.” That is the only option that is NOT open. From a security perspective, no diamond mine in a country where anarchy prevails and where law and order have broken down will risk its staff and workers by sitting on a stockpile. Sooner or later, that leads to hostage-taking, blackmail or an assault on the mine office. The rule in such environments is simple: you fly out the output as frequently as commercially feasible or as required from security considerations.
It may well be that, at some point, at the highest echelons of Rio Tinto the decision will be made to close – irrespective of what the KP leadership will decide. That would be a pity. I know for sure that those immediately in charge are very much aware of the humanitarian imperative not to walk away. They truly care.
In fairness to the NGOs, we realize that there are other considerations. As we wrote last week, governments that use diamond revenue to terrorize their own people shouldn’t be seen as legitimate by the KP system. A country’s military that arbitrarily kills diamond diggers should be reason enough for a country to jeopardize its KP membership status. However, if any of these killers availed themselves of the KP certification mechanism, we would have great sympathy for the call for KP suspension. But each situation ought to be judged on its merits.
Rio Tinto’s Community Involvement
Zimbabwe’s suspension from the KP system will lead to Rio Tinto’s withdrawal and the cessation of its participation and funding of various community activities. Zimb
As part of its HIV/AIDS program, PSI undertakes education, couns
Rio Tinto is also actively assisting local people to develop their own businesses to provide long-term benefits to the community through the injection of skills and money. This en
To date, the company has facilitated the launch of three community-based business initiatives, each of which currently has a strong service link to the mine but has the potential to service other markets. These new companies include the Murowa Construction Company, a small construction enterprise created by former Murowa mine employees. Murowa provided the construction company with financial and practical support to build a two classroom block at the Murowa Primary School, the oldest and biggest junior school in the area. This was subsequently handed over to the school.
The Murowa Manufacturing Sewing Group is another business venture that has been supported by the mine and was formed to manufacture school uniforms for the region. The company also facilitated the development of a small, family-run nursery, the Guzha nursery, which supplies the trees required to carry out reh
If a player like Rio Tinto is “forced out” of Zimbabwe because of some ill-advised removal of the country from the KP, the NGOs will spend years trying to collect money to initiate just the kind of activities developed by Rio Tinto. KP suspension will only add to the suffering. Moreover, there are precedents for how to deal with such situations without suspension.
Angola Precedents
NGOs ought to remember that during the pre-KP days, when there were sanctions on Angola’s diamonds, an exception was made for a well-organized mining site where none of the diamonds produced were conflict related. In 2003, when the KP officially became operative, those diamonds from secure non-conflict origins continued to be officially exported.
Why should Zimb
The international industry, the World Diamond Council and the NGOs should be concerned
Have a good weekend.