In a message to its clients on Wednesday, the Diamond Trading Company (DTC) warns its Sightholders that any purchase of goods from Zimbabwe's Marange region "will be deemed in contravention of the Kimberley Process Certification Scheme," until they are approved by KP Working Group on Monitoring (WGM).

 

The DTC is alerting its Sightholders to exercise "heightened awareness and proper due diligence" in regards to rough diamonds mined at Marange fields.

 

Recently Zimbabwe exported rough diamonds from the Marange fields to Dubai with KP certificates. The country later claimed that it believed it was allowed to do so because the goods were from an old stockpile, and not included in the KP ban.

 

The details of this export appear in a leaked report by the KP Monitor, Abbey Chikane. In the report, Chikane states that the country apologized for the mistake, adding that any exports made before the final approval of the KP, even if accompanied by a KP certificate, are not permitted.

 

In a message titled "Zimbabwe Goods," the DTC further warns its client of reputational challenges that "commercial relations with Zimbabwe' may cause. The letter accompanied by a press release issued by the World Diamond Council (WDC).

 

Following is the letter to Sightholders:

 

"Dear Sightholder

 

Many of you will be aware of the complex and fluid situation in Zimbabwe.

 

In the last few days, unconfirmed reports have suggested that there will soon be an export of goods originating from Marange.  As you know, the Kimberley Process (KP) has appointed Abbey Chikane, as Special Monitor to supervise and approve the export of goods from this region.  Mr Chikane reports to the KP's Working Group on Monitoring (WGM) and he is not permitted to allow Marange exports without the authority of the WGM. 

 

We have been informed by the Chair of the WGM that no authorisation has yet been given to validate the export of goods from any source in Marange.  Until this is forthcoming any purchase of goods from Marange will, therefore, be deemed in contravention of the Kimberley Process Certification Scheme.

 

We strongly advise caution and discretion when purchasing goods throughout the region and ensure that any parcels you view do not contain goods of Marange origin.

 

Finally, extensive media coverage of events in and around Marange indicates that commercial relations with Zimbabwe present a challenge to the reputation of individual businesses and of diamonds in general.  We, therefore, advocate heightened awareness and proper due diligence in this regard.

 

We will keep you informed of further developments."