Zimbabwe pleads for lifting of sanctions on diamonds

Finance Minister Tendai Biti has appealed to the US government to lift sanctions imposed on Zimbabwe’s diamonds, Zimbabwe news agency New Ziana reported.

Last year, the US extended its sanctions against Zimbabwe to the country's two main diamond mining firms -- Mbada Diamonds and Marange Resources.

The decade-long embargo has fueled Zimbabwe's economic crisis but the recent discovery of diamonds in the country has threatened to bust the sanctions.

This prompted the US to extend the sanctions to the two diamond companies, triggering fears by buyers of possible retribution by Washington if they continued trading with the country.

But Biti said the embargo must now be lifted.

“It is critical that executive orders that have been imposed on Zimbabwe's diamonds be lifted,” the finance minister said in Parliament when presenting the 2013 national budget.

Low income from diamond sales also hit Biti's 2012 budget estimates as the sector only contributed an estimated US$43 million (RM 132 million) against an anticipated US$600 million (RM1.8 billion).

Diamond production is expected to reach 16.9 million carats next year, up from the projected 12 million in 2012.

Biti said it was crucial that the government put in place a legal framework to guide the exploration, production and management of proceeds from gems.