From: as on
Zimbabwe gem sale stirs 'blood diamond' fears

Associated Press

Aug 11, 6:18 PM EDT

By MICHELLE FAUL
Associated Press Writer

JOHANNESBURG (AP) -- Zimbabwe auctioned 900,000 carats of rough gems
Wednesday from a diamond field where human rights groups say soldiers
killed
200 people, raped women and enslaved children.

It was the first public sale of diamonds from the notorious Marange
field in
eastern Zimbabwe since international regulators imposed a ban in
November
under rules designed to screen out conflict gems.

The sale happened to coincide with the "blood diamonds" phase of the
war
crimes trial of Charles Taylor, the former Liberian president. Taylor's
case
and the Zimbabwe sale are unrelated, but both point to the successes
and
difficulties facing the campaign to regulate the trade in diamonds that
has
helped finance wars in Liberia, Sierra Leone, Angola, Congo and now
Ivory
Coast.

The auction in Harare, the capital of Zimbabwe, went ahead after the
gems
were certified as conflict-free by Abbey Chikane, a monitor for the
Kimberley Process that oversees trade in the diamonds. Chikane had
established that soldiers were gone from two fenced-off commercial
mines
producing the diamonds, and that the mines were operating according to
"minimum international standards."

In the rest of the field, where Zimbabwe's military still holds sway
and
abuses reportedly continue, a ban on diamonds remains in place. But
there is
no guarantee its product won't infiltrate into the legitimately mined
stones.

The arrangement so angered American gem trader Martin Rapaport that in
February he quit as president of the World Diamond Council. "The
tragedy of
Zimbabwe is that the Kimberley Process has started legitimizing,
legalizing,
kosherizing blood diamonds," he said in a telephone interview from
Israel as
the auction got under way.

He said it made Kimberley participants "liars who are telling the world
that
these diamonds are legitimate."

The Kimberley Process was set up in 2002. Its members are 75
diamond-producing and diamond-trading countries, along with industry
agencies and civic and human rights bodies such as London-based Global
Witness.

Stephane Chardon, chairman of the Kimberley monitoring group, said it
deserved credit for the original ban on Marange diamonds and for
ensuring
that the two fenced-off mines were being properly run.

He noted that the Kimberley rules apply only to blood diamonds mined
and
sold by rebel movements or their allies to finance armed conflicts
aimed at
toppling legitimate governments. It has no provision for punishing
governments.

Chardon said the system has helped. "In quite a few countries it has
contributed to changing conflict diamonds into development diamonds, in
the
sense that the revenues are going to the government and are used for
development purposes and not for conflict."

The Marange field was discovered in 2006 and is believed to be the
biggest
found in the world since the 19th century. It triggered a chaotic
diamond
rush until police and then the army moved in.

Human Rights Watch says the Zimbabwe government still has not kept its
word
to withdraw soldiers completely from the Marange fields, and that it
found
conditions there "quite appalling" as recently as May.

"We found that people were still being forced to mine, to dig for
diamonds
at gunpoint by the army, by soldiers," said senior researcher Tiseke
Kasambala of the area outside the two fenced off mines. "We found
children
as young as 11 still working in these mines."

Buyers from Belgium, Russia, India, Israel, Lebanon and the United Arab
Emirates flew into Harare on private aircraft to inspect the stones and
present bids in sealed envelopes. They refused to speak to reporters.

"Buyers were extremely interested and the pricing was satisfactory,"
said
David Castle, director of Mbada Diamonds and chairman of the South
African
New Reclamation Group that offered the diamonds for sale.

Global Witness campaigner Elly Harrowell said that instead of expelling
Zimbabwe from the Kimberley process as recommended last year by
Kimberley
Process investigators who were sent to Marange, "What we have instead
is a
weak compromise."

She said that unless Zimbabwe kept its promise to withdraw all troops
and
fulfill other promised improvements, the Kimberley Process should "act
very,
very quickly" to prevent Marange gems from being exported.

The compromise was reached after a Zimbabwe court released human rights
activist Farai Maguwu, who was jailed for more than a month after
publicizing abuses at the diamond fields.

Human rights groups say the deal also helped avert a crisis in the
international diamond market, since President Robert Mugabe was
threatening
to sell stones without certification.

Zimbabwe's mines minister, Obert Mpofu, said Wednesday the country has
4.5
million Marange diamonds in stock, valued at up to $1.9 billion - one
third
of the national debt of a country whose economy has been ruined by
corruption, mismanagement and Mugabe's campaign against the country's
white-minority farmers.