International insurance and courier firms remain reluctant to insure or ship diamonds harvested from Zimbabwe's controversial Marange area, even with Kimberley Process approval, a leading diamond consulting firm claims.

Tacy Ltd Diamond Industry Consultants' recent diamond industry intelligence report suggested that "profound reputational problems," as well as Western financial sanctions have dissuaded insurers and courier firms from handling Marange gems.

According to TimesLive, the Tel Aviv-based diamond consultancy said unwillingness by transporters and insurers to move Marange diamonds to Europe and the United States, or to cover such shipments, meant Dubai and Mumbai will emerge as the main destinations for the gems and their entry points into the international market.

Zimbabwe has been trying to regain the international diamond industry's trust following the controversy sparked by human rights abuses allegedly perpetrated at Marange, but key Western diamond players have trade in what many consider to be conflict diamonds. A recent decision by the KP diamond watchdog has done little to ease Western concerns.

The insurer's diamond intelligence report said gem couriers were "hesitant or unwilling" to ship diamonds from the two Harare auctions, most likely over uncertainty as to the legal implications of handling Marange diamonds. This reluctance is apparently compounded by that of some several international banks which are still wary of lending lines of credit to Harare.



Tacy Ltd Diamond Industry Consultants also said the insurance giant Lloyds Underwriters, has refused to insure Marange diamond shipments, because it did not want to be associated with the controversial gems.