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Broad Legal Procedure for Sourcing Supply of Diamonds from Zimbabwe

Step 1:  Applying and registering on the Rough Diamond Customer Database

To apply and register with Minerals Marketing Corporation of Zimbabwe (MMCZ) to be considered for inclusion to the Rough Diamond Customer Database.

Step 2:  Process of selecting potential buyers

Customers selected from the database using the First-In-First-Out method and any other criteria based on the information provided through the Know your Customer (KYC) Form, are then invited for a tender.

Step 3:  Procedure for inviting tenders

Selected customers are invited to view the rough diamond parcels by any of the Producer for sales method commonly employed in selling rough diamonds that include Tender, Negotiation and combination of the two.  Presently Agency Sales are only used for Murowa Diamond Sales as per standing agreements with the Government of Zimbabwe.

Step 4:  Procedure for submission and opening of bids

Customers who attend sales that are done through tender are required to submit their bids in a sealed envelopes.  Opening of the bids is done by a notary at the Producer’s or MMCZ’s offices.

Step 5:  Criteria for selecting winning bids

MMCZ and the Producers sit to set reserve prices for the parcels that were tendered.  This price could be the higher of the Producer and MMCZ prices or the average of the two.   Thereafter, opening of the bids immediately follows.  Winning bids are those that are equal or above the reserve price.  If there is no such bid, negotiations are made with the higher bidder with the view to narrow the gap with the reserve price.  The price achieved after negotiations becomes the winning price of the parcel.  If after negotiations, the highest price remains unacceptable, the parcels are withdrawn from the tender, or re-tendered.

N.B.  [Please note that these are just broad outlines of legal procedure for sourcing of rough diamonds from Zimbabwe. For full and precise details, please contact concerned Zimbabwean authorities, including MMCZ and Ministry of Mines and Mining Development.