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In the wake of the Kimberley Process Scheme meeting in Jerusalem, no decision has yet been made on lifting the export ban on Zimbabwe’s “blood” diamonds, and Indian merchants are pushing for trade to be resumed.
By Damon van der Linde–Exclusive to Diamond Investing News
In an article by Indian Weekly Magazine Tehelka, Surat Rough Diamond Sourcing India Ltd (SRDSIL) spokesperson and legal advisor Nirav Jogani said that the consortium will await the Kimberley approval before importing Zimbabwe diamonds, though he expressed concerns over the effect illegitimately exported diamonds could have on the market.
“There are many countries that are outside the Kimberley Process and if diamonds don’t enter the mainstream, they will flood the market at low prices and destabilize the market,” Jogani said. “India backs the entry of Zimbabwe into the Kimberley Process, because to keep such a large source of diamonds outside the legitimate loop has its own problems.”
India is a major diamond manufacturing center. The Gem & Jewellery Export Promotion Council (GJEPC) claim 14 of 15 diamonds in the global market are now manufactured in the country.
SRDSIL has been criticized for its efforts to lobby with the Indian government to endorse the import of diamonds from Zimbabwe. Exports from Zimbabwe were suspended last year for noncompliance with the Kimberley Process, though they have been involved in tense negotiations with member countries regarding the conditions of their mines since 2008.
In October 2010, SRDSIL agreed to a $1.2 billion US deal with Zimbabwe’s government to train Zimbabweans as diamond cutters and polishers, in exchange for a direct supply of rough diamonds. Included is a guaranteed purchase of $100 million a month in rough diamonds from the Marange fields, the area of Zimbabwe where allegations of human rights violations have originated.
The Kimberley Process Scheme is a United Nation backed certification created to ensure rough diamonds are mined from ‘conflict free’ sources because of the human rights violations in African nations such as Zimbabwe and the Democratic Republic of Congo. As reported previously in Diamond Investing News, both India and China are vying for control of the diamond polishing market through the acquisition of rough diamonds.