Anjin Diamond Workers Strike Over Salaries

Over 600 workers at Anjin Investments, one of the biggest mining firms at the Chiadzwa fields of Zimbabwe, have gone on strike demanding higher salaries and better working conditions in the wake of the KPCS endorsement of diamond sales.

The workers claim the lowest-paid employee (general hand) earns $180 per month, an amount they want moved to $600 in line with the poverty datum line.

The strike began on Saturday morning and by late yesterday, the workers were still on strike serve for the security department.

Anjin is among five companies that were licensed by the government to partner with the Zimbabwe Mining Development Corporation to mine alluvial diamonds in Marange.

Workers in all departments, including the mining, prospecting, power and equipment sections were yesterday seated saying they will only resume their duties after a "reasonable" salary increment.

Anjin Investments human resources manager Lindiwe Ngwenya yesterday confirmed the standoff, but urged the workers to be patient saying results of salary negotiations were not yet out.

"I am in Harare at the moment, but the workers need to know that we were paying them using the investor's money and their requests for salary increments are still being negotiated.

"We were recently given certification and we are expecting to start selling our diamonds next week and for the workers, reason should just prevail," she said.

However, workers committee chairman, John Mupfurutsa, accused management of playing "hide and seek" with the workers.

"All is not rosy . . . We last met management on November 1 following our October 30 sit-in and the signed agreement was that we would have received increased salaries last month.

"We were surprised to receive the usual peanuts on the agreed date and it is clear they are not sincere."

He said no one from management addressed the workers except an official who was only identified as "Mr. Edgar," who heads the power and equipment department. "We had no option except to dismiss him since he is also an employee and a mere head of department," he said.

Mr Mupfurutsa said their salaries should be equivalent to those being paid by such companies as Marange Resources and Mbada Diamonds.

"We work day in day out only to be rewarded in that manner. Just like them we have families to feed that is why we need to be treated fairly. We also need protective clothing for us to be safe," he said.

The Chinese firm was recently granted permission by the Kimberly Process Certification Scheme to sell over two million carats of diamonds mined in Marange.
Zimbabwe Mining Development Corporation chairman Godwills Masimirembwa said: "I do not have the full details but since the company has been authorized to sell (diamonds), there is no doubt all problems that arose due to Anjin's inability to sell its diamonds will be solved."

The Chiadzwa diamond fields have the potential to satisfy 25 percent of global demand.

The U.S., Britain and Canada have relentlessly fought to have the Chiadzwa gems barred from the international market for fear that they would help Zimbabwe bust the west's illegal economic sanctions regime.

-Rapaport

Zim diamond sales to soar, platinum royalty to be doubled

Zimbabwe boosted its revenue estimate for 2012 as diamond sales are set to soar and government doubles royalties on platinum to take advantage of higher prices.

Revenue will probably reach $4-billion next year, up from an earlier projection of $3.4- billion, Finance Minister Tendai Biti said in his Budget speech in the capital, Harare.

The royalty on platinum sales will increase to 10%, while gold producers will be charged 7%, up from 4.5%, he said.

Zimbabwe, which emerged from a decade-long recession in 2009, is seeking to earn more from mining to help bolster the economy’s recovery. The Southern African nation has the world’s second-largest reserves of platinum, which is mined by companies including Anglo American Platinum and Impala Platinum Holdings. Zimbabwe also began selling diamonds this year after a partial ban on the gems was lifted.

“The resource rent collections are not commensurate with the value of minerals extracted, especially in view of the surge in the international prices of precious metals,” Biti said. “Government expects compensation for permanent loss of resources, since minerals are a depleting resource.”

Royalties earned the Zimbabwe government $44.1-million in the first ten months of the year, compared with mineral export earnings of $1.7-billion, Biti said. Platinum makes up 45% of mineral export earnings, gold 24% and diamonds 14%, he said. Mining shipments are estimated to expand 39% this year and 13% in 2012, he said.

A ban on diamond sales from Zimbabwe was partially lifted after the Kimberley Process, set up to monitor the sale of so-called conflict diamonds, allowed exports from two operations in the Marange region.

Zimbabwe has struggled to attract investment since emerging from recession two years ago because of instability in the power- sharing government. President Robert Mugabe’s Zanu-PF rules the country jointly with the Movement for Democratic Change, led by Prime Minister Morgan Tsvangirai.

The economy will probably grow 9.4% in 2012 from an estimated 9.3% this year as the finance and mining industries expand, Biti said.

He did not give estimates for government spending for 2012. Recurrent expenditure, which includes salaries, amounted to $1.68- billion in the first nine months of the year, while capital expenditure was $192-million. Total revenue was $2.1-billion, he said.

-Mining Weekly

Rapaport Group Calls on Diamond Trade to Avoid Marange Diamonds

The Rapaport Group strongly opposes the recent decision of the Kimberley Process (KP) to allow for the immediate exports from the mining operations Mbada Diamonds and Marange Resources in the Marange region of Zimbabwe.

We hereby publicly warn members of the diamond trade that the KP does not certify against human rights abuses and KP certification does not ensure that diamonds are not involved in human rights abuses. Furthermore:

1. There are persistent reports of human rights violations related to Marange diamonds.

2. In spite of KP certification these diamonds are under U.S., EU and U.K. government sanctions and are illegal for trade by U.S., EU and U.K. citizens and entities owned by them.

3. The funds generated from the sale of these diamonds are not properly accounted for. It is likely that they will be used to fund human rights violations in Zimbabwe.

The Rapaport Group calls on all ethical members of the diamond trade to cease and desist from the trading of Marange diamonds. In the event that firms insist on buying and producing them we demand that these Marange diamonds be separated from non-Marange diamonds so that they are not sold to U.S., EU or U.K. entities. We firmly believe that the mixing of Marange diamonds with non-Marange diamonds and their subsequent sale to U.S., EU or U.K. entities without disclosure is unethical and illegal. We demand that firms selling Marange diamonds do so with full disclosure, similar to the disclosure requirements for treated diamonds.

RapNet - Rapaport Diamond Trading Network continues to ban the trading of any diamonds sourced from Marange, Zimbabwe even if such diamonds have KP certification. Members found to have knowingly offered Marange diamonds for sale on RapNet will be expelled and their names will be publicly communicated. RapNet will be publishing new trading rules and ethical guidelines in the near future.

The Rapaport Group warns the diamond trade that continued sourcing and legitimization of diamonds involved in human rights abuses threatens the integrity and reputation of all diamonds. Diamond trade organizations particularly those promoting responsible trade and those serving in the U.S., EU and U.K. trade should immediately issue clear guidelines banning all their members from trading Marange diamonds. We believe it is unethical for trade organizations to refrain from clearly banning the trade in illegal Marange diamonds under the guise of supporting the KP.

-Rapaport

DIAMONDS WILL HAVE TO BE FACTORED INTO ZIMBABWE’S STATE BUDGET

Zimbabwe’s state budget will have to be revised to take into account rough diamond sales following last week’s decision by the Kimberley Process to allow the export of Marange diamonds, Zimbabwe’s Finance Minister Tendai Biti said on Thursday.

Biti said that in light of the KP decision, he was “seriously considering” increasing the budget.

The New Zimbabwe website quoted Biti saying that he would “engage” with Mines and Mining Development Minister Obert Mpofu to factor in revenue from diamond sales.

Mpofu, for his part, celebrated the decision, declaring that Zimbabwe would “shock the world” and “unleash [its] worthiness.”