Harare — About 300 000 diamond carats from Chiadzwa diamond fields go under the hammer today in the first formal trade of the precious mineral since Government moved in to normalise mining at the minefields.

Government, through the Zimbabwe Mining Development Corporation, went into partnership with South African company Grandwell to form Mbada Diamonds that went full throttle into exploration of the Chiadzwa diamonds.

Carat is a term used to express the weight of a diamond, with one carat equalling 200 milligrammes of actual weight.

The auctions, to be done on a regular basis, will earn the Government up to 80 percent of total sales revenue through a 50 percent weekly-by-weekly dividend, 10 percent royalty fee, 15 percent taxation and 5 percent resource depletion fee.

This was also in compliance with the Kimberley Process Certification Scheme, which had called for the reform of mining practices at the diamond fields.

Addressing journalists in Harare yesterday, Mbada Diamonds chairman Dr Robert Mhlanga, said the sale by auction would take place at the company's newly-converted diamond processing facility at the Harare International Airport.

"This inaugural sale will be followed by a similar sale of another 300 000 carats next week following about a month of diamond mining operations at Mbada's Chiadzwa/ Marange diamond fields," he said.

International diamond buyers, Dr Mhlanga said, had arrived in Zimbabwe from as far as the Americas, Europe, Asia and Africa for the three- day auction.

He said to ensure maximum security and compliance with the Kimberley Process, the diamonds on sale today were airlifted from Chiadzwa under guard by security personnel from the police, Mbada Mining and the Government's Minerals Unit.

"The entire process of mining, transportation to marketing is being done in compliance with the requirements of the Kimberley Process.

"The sales and marketing offices are jointly manned and controlled by teams from both Government and Mbada Diamonds," he said.

Dr Mhlanga said this was done to ensure a zero tolerance policy towards any form of leaks, while the Zimbabwe Revenue Authority personnel would attend the sale to ensure maximum and timeous revenue collection.

The Mbada Diamonds project started in September last year with production commencing in December. This was followed by the installation of infrastructure for proper mining on the fields.

The process saw Government moving onto the fields after several years of illegal diamond mining activities with State security agents being deployed into the area.

The State went into partnership with some private investors to create over 300 full-time jobs from diamond mining experts, security and general workers.

Seven boreholes have been sunk at the fields, while a 16km water pipeline from Odzi River to the mining site for diamond processing has been established.

The investors have also constructed an internal roadwork covering more than 25km, while the companies are helping with maintaining of roads in the area.

The investors have undertaken a massive housing project and crop input schemes for families facing relocation from the Chiadzwa and Marange areas.

The first phase of the housing scheme at former Arda Transau Estate is expected to accommodate 1 800 families affected by the diamond mining operations.