Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
The Zimbabwe Independent quotes finance minister Tendai Biti (pictured) on Friday as saying the reality of Zimbabwe’s situation is that there is no connection between Zimbabwe’s income from diamonds, its output and international prices adding the country’s resources are in danger of turning into curse rather than a blessing.
Zimbabwe exported 716 958,50 carats from its alluvial diamond mines but only $103,9 million of diamond export shipments was accounted for in the first half of the year. The military seized control of the rich diamond fields in Chiadzwa in 2006 and most observers believe an international ban on these gems are being widely flouted.
The Zimbabwe Independent reports Biti also called for transparency in the diamond mining sector: “Wherever rough diamonds exist and are not managed transparently and openly, they become a major source of suspicion, conflict and national dislocation. Put simply, there are times when resources, instead of being a blessing, can become a curse.”
The jingoistic Buluwayo24 website reported Thursday the European Unionteam resident in Zimbabwe is scared of discovering the truth about diamond fields in Chiadzwa. They chickened-out of an offer to go on a fact-finding visit to Marange diamond mining area after their handlers headquartered in Brussels back-tracked. The common-sense perception derived from the turn-around is that, Brussels feared that allegations of alleged human rights abuses in the area would be disproved.
Image is of Tendai Biti speaking with reporters during a new conference on Africa during the IMF World Bank spring meetings in Washington, Friday April 16, 2011. IMF Photograph/Cliff Owen.
Comments
Candydkim
Biti is right. Resource curse has been a problem in Africa. Zimbabwe has the danger of heading the same way.