Will consolidation bring sanity in the diamond sector?

MUTARE – While the minister of Mines and Minerals Development stuck to his guns on government’s commitment to consolidate diamond firms in Chiadzwa, he is deafeningly silent on the real issues affecting villagers.

Chidhakwa, according to media reports, told delegates at the Zimbabwe Mining and Infrastructure Indaba 2015 that government would move to consolidate diamond mining firms operating in Marange diamond fields.

Government currently has 50% shareholding in diamond companies operating in Marange through the Zimbabwe Mining Development Corporation, will merge diamonds firms into one entity to be aptly called the Zimbabwe Consolidation Diamond Corporation (ZCDC), to ostensibly plug leakages and enhance transparency.

While it is a given that proceeds from the fields have been oozing out right under government’s nose and that opacity of operations have been the norm, government must not jump the gun without making exhaustive consultations.

For there are skeptics who in acknowledging the good faith of consolidating the mining firms question if this can be achieved if government is both a player and referee in the same industry?

The villagers who bear the brunt

Villagers who live in the resource rich area, and some living downstream along Odzi River, have been adversely affected by the operations of the mining firms and before their closure; they also seek closure on compensation, relocation and their livestock which has perished.

For villagers who are powerless, even as Chidhakwa alludes that “As long as this government is in operation, it doesn’t matter where you go. We have made a decision and that is what we are going to do,”- it is just a matter of observing operations in motion.

For people like Tichaenzana Chibuwe, a member of Save Odzi Community Trust, and many other like him, diamonds have left a legacy of brutality, violence, death, poisoning of cattle, social disturbances and economic impoverishment.

Chibuwe is worse off today than before. He recollects how his family herd was affected by poisonous emissions into Odzi River by two companies which gathered diamonds, for alluvial mining of diamonds is not so much of the normal mining operations. It only requires picks and shovels, which the illegal panners used to have, and of course the front end loaders and heavy trucks, brought in by the Chinese as investment.

“Government should stop the merger before we know what would become of our cattle that died from drinking contaminated water discharged by the miners and the community share ownership trust among other outstanding issues. Who will we approach when the companies that are committing these atrocities are no longer there?” questioned Chibuwe.

Given that the merger materializes, legal experts indicated that the villagers would not have legal ground to press the new company to own up to the obligations of dissolved companies.

“If government merges the diamond firms this will be a huge blow for the communities affected by diamond mining. They cannot legally coerce the new firm to fulfil issues that were instigated by the former diamond firms. In short, the case would be as good as closed and I believe government is aware of this,” said Zimbabwe Environmental Law Association (ZELA) Head of Research, Shamiso Mtisi.

Free prior informed consent (FPIC)

Proponents of the ideals of a Free Prior Informed Consent argue that while there is no universal definition of this concept, the principle is that indigenous peoples and local communities must be adequately informed about projects in a timely manner and given the opportunity to approve (or reject) a project before operations begin.

Titus Gwemende of Oxfam’s Southern Africa Program Advisor on Extractive Industries argues that without such consultations which “enable people to determine the outcome of decision-making that affects them and not merely a right to be consulted about projects which others will ultimately make decisions on,” governments may make decisions which adversely affect vulnerable host communities.

Gwemende said the FPIC rationale emanates from international law which gives states that duty to consult host communities on the externalities they may bear in the event of a project being carried out in their locality.

He said it is guided by United Nation Declaration on the Rights of Indigenous Peoples (UNDRIP) that seeks to promote rights of these vulnerable communities.

“The UNDRIP promotes the right of indigenous peoples to give or deny their Free, Prior and Informed Consent for projects that affect them, their land and their natural resources and 144 countries, including Zimbabwe, have endorsed the UNDRIP.

“The right to FPIC is also articulated in ILO Indigenous and Tribal Peoples Convention 169 (ILO 169) which deals with the rights of indigenous and tribal peoples. It is also acknowledged in the jurisprudence of international and regional human rights bodies, which have interpreted the major human rights treaties as embodying the requirement for FPIC from indigenous peoples,” he said.

On the continental front, leaders cognizant of the adverse effects of mining in ‘The Africa Mining Vision’ calls for countries to regulate provisions on public participation, which should “not just [be] consultation [but] information sharing, dispute resolution and “participatory decision making”

In December 2011, the African Union Conference of Ministers responsible for mineral resources adopted an action plan for implementing the Africa Mining Vision with calls on states to “develop instruments to domesticate the Protocol of Free Prior Informed Consent with respect to communities affected by mining.”

Domestically provisions of our own Environment Management Act, that establishes the Environmental Management Agency (EMA) a superintendent on the environment also reflects FPIC ideals.

The Environmental Impact Assessment (EIA) requirements to mining companies, gives opportunity for communities to reject projects. The Act gives the Director General an opportunity to consult any authority, organisation, community, agency or person which or who, in his opinion, has an interest in the project, before the granting of a certificate.

If this consultation shows that communities do not like such a project it is therefore within the legal purview to stop such projects or activities which may be seen as more harmful than beneficial.

So if our dear Minister has any euphoria making such pronouncements which may seem prohibitive of communities to enjoy their rights he must do so with more caution.

While mining companies are blamed for not remitting funds into the dysfunctional Community Share Ownership Trusts (CSOTs) it is half government’s problem.

This is no issue to be swept under the carpet, for communities ululated and celebrated at the launch of the CSOT but nothing has come out of them as mining firms said these were obligatory and not mandatory.

Villagers want compensation for the destruction of their livestock and who will answer to them in the consolidated firm? Some of the relocated families are facing sanitation and hygiene challenges, who will address that issue?

Consolidation will surely bring no joy to villagers, or even so to the nation before structural reforms to ensure transparency and accountability in the sector, for consolidation does not speak to such issues.

Government must also, as a matter of urgency, commission a comprehensive explorative geological survey to determine the conglomerate deposits in Chiadzwa, lest they start mining in darkness.