India, China Plan to Evade Kimberly Process
Source: Commodity Online (11/25/10)
"India, China, UAE support African countries in debasing KP certification."
Sources revealed that the African countries, with the support of India, China and the UAE, were frustrated by last week's impasse over the sale of gemstones and were willing to go to great lengths to debase the KP certification.
The report said these nations are annoyed by domination of the KP process by the United States, Canada and Australia.
As if to cement this position, an opaque company, the Zimbabwe Diamond Consortium signed a $2 billion deal with an Indian company.
The source added that he did not see Zimbabwe selling its diamonds outside the KP process, but a more elaborate plan was in place that will see the minerals being sold if the KP certification deadlock persisted.
Additionally, Zimbabwe Diamond Consortium warned, "we have the potential to destroy the whole industry" by flooding the market with underpriced gems in response to the KP certification deadlock.
Zimbabwe was desperate to sell the diamonds, and the KP was wary that if the country was allowed to sell its minerals openly it would flood the international market causing a plunge in prices.
The KP Certification reached a deadlock over Zimbabwe, meaning the country will have to halt the sale of diamonds. So far, the country has been allowed to sell 900,000 carats and it was expected that it would be allowed to sell more.
The sale of the gemstones is considered a cure-all for Zimbabwe's economic problems, which accelerated in the last decade.