Surat sighs as it sights Zimbabwe diamonds

The breakthrough came during a recent two-day meeting of the Working Group of Monitoring (WGM) of Kimberley Porcess(KP) in Dubai. KP is a international body whose certification is mandatory for the global trade in diamonds.

The Gems and Jewellery Export Promotion Council (GJEPC) welcomed the development,saying it paves way for resumption of supply of rough diamonds to Surat,which is the largest diamond polishing hub in the world.

According to industry sources,the ball is in the court of the Zimbabwean government,which has to take a decision on approving the draft document sent by the WGM of Kimberly Process,with conditions applied.

The WGM meeting in Dubai debated on lifting the current ban on the export of rough diamonds from Zimbabwean mines to other countries. Earlier,KP delegates from 47 countries had consented to allowing the export of rough diamonds from Zimbabwean mines but the US and the UK had shot down the idea. They have now reportedly relented.

From India,GJEPC’s executive director Sabyajit Ray and joint secretary in the Ministry of Commerce,Anurag Saxena,were present in the meeting.

Sources said the draft document containing certain conditions has been sent to the Zimbabwean government and if it agrees,the ban on the export of rough diamonds from Zimbabwe’s Marange mines could be lifted.

GJEPC chairman Rajeev Jain said he was hopeful of a positive outcome since the conditions put in the draft document could be met. “KP members from Zimbabwe were also present in the meeting and they agreed on all the major conditions but differed on a few,which would be worked out after discussions with their government. The entire picture should be clear in the next week,” he said.

Members of Surat Rough Diamond Sourcing India Limited (SRDSIL) were also delighted. SRDSIL was formed by diamond merchants last year. In October 2010,it signed an MoU with Mines and Mineral Minister of Zimbabwe,Obert Mpofu,for the supply of rough diamonds worth $ 1.2 billion per year from the Marange fields. The SRDSIL had,in return,promised to train 1,000 Zimbabwean youths in cutting and polishing diamonds.

Chairman of SRDSIL Ashit Metha said,“We are hoping for the best. The entire picture will be clear next week.”