Zimbabwe’s diamond production reached 2.329 million carats in the first half of 2011 with the bulk coming from the controversial Marange fields, Finance Minister Tendai Biti reported to Parliament on Tuesday. The Treasury expects production to ramp up in the second half to reach 8.2 million carats for the full year, which would be slightly lower than the 8.435 million carats mined in 2010.

Rio Tinto earlier reported that production at its Murowa kimberlite mine rose 87 percent year on year to 125,000 carats during the first half of the year, while output at Zimbabwe’s third mine, River Ranch, is undisclosed but said to be less substantial.

The minister noted that Zimbabwe exported 716,958.50 carats of diamonds from the Marange fields in the six months that ended June 30, 2011, but added that the Treasury has not received any payment for the goods.

“Despite the huge production at Marange in 2011, no payment has been received by Treasury for income earned between January, 1 and June 30, 2011,” Biti said.

He reported that $103.9 million of diamond exports were accounted for in the first half of 2011 with the only payment made in February relating to 2010 production.

Biti called upon the Zimbabwe government to pass the proposed Diamond Revenue Bill, which would create a legal framework to audit trail all of the country’s diamond revenue, its sharing and distribution, and the role of the Zimbabwe Revenue Authority (ZIMRA) at the production and marketing levels.

Zimbabwe has been banned from exporting diamonds from the Marange fields by the Kimberley Process in response to human rights violations, which took place in the area in 2008 and 2009. While negotiations to bring the country into compliance continue, sales have taken place with the exports pending Kimberley Process approval. This month, the governing body sanctioned the release of parcels of Marange goods being held in Dubai, which were sold in November 2010 for an estimated value of $160 million.

Biti noted that the diamond sector has been held back by problems associated with the Kimberley Process as well internal issues of transparency and accountability, which have prevented the country from capitalizing on the recent strong market conditions.

“The reality of Zimbabwe’s situation is that there is no connection between Zimbabwe’s income from diamonds, its output and international prices,” he said.

Biti called upon the international community to recognize the compliance levels attained by Zimbabwean companies and allow Zimbabwe the right to sell its diamonds within the Kimberly Process framework.