Diamond Miners in Zimbabwe Told to Sell Gems to Central Bank as Collateralize for Chinese Loans

The exploitation of Africa by bigger, stronger and wealthier nations is nothing new. In contemporary times, it appears China has been making a particularly aggressive move considering its huge economy, enormous population and insufficient natural resources. While this topic has not been a focal point on this site, I have covered it in past. Most specifically in a Guest Post from late 2012 titled: Africa in the Crosshairs.

In the article below from Bloomberg, we learn that diamond miners in the country have been told they must sell their gems through the Central Bank to serve as collateral for government loans. The country’s deputy mines had said in earlier in may that “Zimbabwe may use mineral exports, including gold and diamonds, to underwrite loans from China.”

From Bloomberg:

Diamond miners in Zimbabwe have been told to sell their gems through the central bank, which will use the stones to secure a government loan, according to a letter written to them by the country’s mines secretary.

In the letter to miners, the secretary Francis Gudyanga, instructs that producers “prepare parcels of all your currently produced diamonds which must be sorted and evaluated with the involvement of the Minerals Marketing Corp. of Zimbabwe,” a state company, and payment will be made soon after.

The stones will be kept by the central bank and used to “securitize a government loan,” Gudyanga said in the letter. The letter, obtained by Bloomberg, was sent to miners April 28 and came into effect April 30.

Read more

Like this post?
Donate bitcoins: 35DBUbbAQHTqbDaAc5mAaN6BqwA2AxuE7G


Follow me on Twitter.