Zimbabwe auctioned 900,000 carats of rough gems Wednesday from a diamond

JOHANNESBURG Zimbabwe auctioned 900,000 carats of rough gems Wednesday from a diamond field where human rights groups say soldiers killed 200 people, raped women and enslaved children.It was the first public sale of diamonds from the notorious Marange field in eastern Zimbabwe since international regulators imposed a ban in November under rules designed to screen out conflict gems.The sale happened to coincide with the “blood diamonds” phase of the war crimes trial of Charles Taylor, the former Liberian president. Taylor’s case and the Zimbabwe sale are unrelated, but both point to the successes and difficulties facing the campaign to regulate the trade in diamonds that has helped finance wars in Liberia, Sierra Leone, Angola, Congo and now Ivory Coast.

The auction in Harare, the capital of Zimbabwe, went ahead after the gems were certified as conflict-free by Abbey Chikane, a monitor for the Kimberley Process that oversees trade in the diamonds. Chikane had established that soldiers were gone from two fenced-off commercial mines producing the diamonds, and that the mines were operating according to “minimum international standards.”

In the rest of the field, where Zimbabwe’s military still holds sway and abuses reportedly continue, a ban on diamonds remains in place. But there is no guarantee its product won’t infiltrate into the legitimately mined stones.The arrangement so angered American gem trader Martin Rapaport that in February he quit as president of the World Diamond Council. “The tragedy of Zimbabwe is that the Kimberley Process has started legitimizing, legalizing, kosherizing blood diamonds,” he said in a telephone interview from Israel as the auction got under way.

He said it made Kimberley participants “liars who are telling the world that these diamonds are legitimate.”The Kimberley Process was set up in 2002. Its members are 75 diamond-producing and diamond-trading countries, along with industry agencies and civic and human rights bodies such as London-based Global Witness.

Stephane Chardon, chairman of the Kimberley monitoring group, said it deserved credit for the original ban on Marange diamonds and for ensuring that the two fenced-off mines were being properly run.He noted that the Kimberley rules apply only to blood diamonds mined and sold by rebel movements or their allies to finance armed conflicts aimed at toppling legitimate governments. It has no provision for punishing governments.Chardon said the system has helped. “In quite a few countries it has contributed to changing conflict diamonds into development diamonds, in the sense that the revenues are going to the government and are used for development purposes and not for conflict.”

The Marange field was discovered in 2006 and is believed to be the biggest found in the world since the 19th century. It triggered a chaotic diamond rush until police and then the army moved in.Human Rights Watch says the Zimbabwe government still has not kept its word to withdraw soldiers completely from the Marange fields, and that it found conditions there “quite appalling” as recently as May.

“We found that people were still being forced to mine, to dig for diamonds at gunpoint by the army, by soldiers,” said senior researcher Tiseke Kasambala of the area outside the two fenced off mines. “We found children as young as 11 still working in these mines.”Buyers from Belgium, Russia, India, Israel, Lebanon and the United Arab Emirates flew into Harare on private aircraft to inspect the stones and present bids in sealed envelopes. They refused to speak to reporters.

“Buyers were extremely interested and the pricing was satisfactory,” said David Castle, director of Mbada Diamonds and chairman of the South African New Reclamation Group that offered the diamonds for sale.Global Witness campaigner Elly Harrowell said that instead of expelling Zimbabwe from the Kimberley process as recommended last year by Kimberley Process investigators who were sent to Marange, “What we have instead is a weak compromise.”

She said that unless Zimbabwe kept its promise to withdraw all troops and fulfill other promised improvements, the Kimberley Process should “act very, very quickly” to prevent Marange gems from being exported.The compromise was reached after a Zimbabwe court released human rights activist Farai Maguwu, who was jailed for more than a month after publicizing abuses at the diamond fields.

Human rights groups say the deal also helped avert a crisis in the international diamond market, since President Robert Mugabe was threatening to sell stones without certification.Zimbabwe’s mines minister, Obert Mpofu, said Wednesday the country has 4.5 million Marange diamonds in stock, valued at up to $1.9 billion – one third of the national debt of a country whose economy has been ruined by corruption, mismanagement and Mugabe’s campaign against the country’s white-minority farmers.(AP)

Israel finds rare 2,200-year-old gold coin weighs an ounce (28 grams)

JERUSALEM  Archaeologists say they have uncovered the heaviest and most valuable gold coin ever found in Israel. The 2,200-year-old coin weighs an ounce (28 grams) and was found at the Tel Kedesh site near the Lebanon border on June 22, according to Wednesday’s statement from the antiquities authority.It said this coin is six times the weight of most others from that era.Donald Ariel, head of the antiquities authority coin department, said the coin dates back to the rule of the Iraq-based Seleucid Empire, though it was minted by the rival Egyptian Ptolemies.Ariel said the coin’s image may represent Cleopatra I, wife of Ptolemy V. It is only the second gold Ptolemaic coin ever found in Israel. The first weighed just two grams (0.07 ounces).(AP)

Hezbollah militants accuses Israel of Hariri assassination

BEIRUT The leader of Lebanon’s Hezbollah militants presented aerial reconnaissance footage Monday that he said implicates Israel in the 2005 assassination of former Lebanese Prime Minister Rafik Hariri.But Sheik Hassan Nasrallah, who has been in hiding since his Shiite Muslim group battled Israel in a monthlong 2006 war, acknowledged the material was not absolute proof.

“This is evidence, indications … that open new horizons for the investigations,” Nasrallah said at a lengthy press conference in which he spoke to reporters via satellite link.The speech comes as pressure is mounting on Hezbollah over a Netherlands-based tribunal investigating Hariri’s assassination, which is set to issue indictments this year. If Hezbollah is indicted, there are fears it could spark riots between the Sunni supporters of Hariri and Shiite followers of Hezbollah.The two sides have clashed before following political power struggles. In May 2008, Hezbollah gunmen swept through Sunni pro-government neighborhoods of Beirut, raising the threat of a new civil war.

Israel immediately dismissed Hezbollah’s accusations.

“The international community, the Arab world, and most importantly, the people of Lebanon all know that these accusations are simply ridiculous,” a senior Israeli official said, speaking on condition of anonymity because no government statement was made.Hariri was killed in a massive Valentine’s Day truck bombing in 2005 that many in Lebanon blamed on Syria, which backs Hezbollah. Syria denies any involvement in the assassination.

Hariri, a billionaire businessman credited with rebuilding Lebanon after its 15-year civil war, had been trying to limit Syria’s domination of Lebanon in the months before his assassination.

The killing sparked massive anti-Syrian protests in Lebanon, dubbed the “Cedar Revolution,” which led to Syria’s withdrawal.Nasrallah said the tapes shown Monday were intercepted by Hezbollah between the 1990s and 2005, and showed Israeli reconnaissance footage of areas frequented by Hariri, including where he died. He said this proved Israel was tracking his movements for purposes of assassination.

Asked why he was presenting the material at a press conference as opposed to the tribunal, Nasrallah said: “I do not cooperate with parties that I do not trust.”

The tribunal has not said who will be charged, but Nasrallah said last month he already knows that Hezbollah members will be among them. His July 22 announcement appeared to be an attempt to soften the impact of any charges.He has said the tribunal has no credibility and is simply an “Israeli project,” and that his group will not turn over any of its members for trial.

In response to questions about why Nasrallah chose to offer the material five years after Hariri’s assassination, he said the recent arrests of scores of Lebanese agents who were spying for Israel since last year has yielded information proving Israel’s deep involvement in a number of assassinations in the country.Nasrallah said his group also has just learned of an Israeli spy who had been scouting the area of the assassination just a day before the truck bomb that killed Hariri exploded. The spy, however, fled before authorities could arrest him. (AP)

discovery of large natural gas could lead to new Lebanon-Israel war

BEIRUT The discovery of large natural gas reserves under the waters of the eastern Mediterranean could potentially mean a huge economic windfall for Israel and Lebanon, both resource-poor nations – if it doesn’t spark new war between them.The Hezbollah militant group has blared warnings that Israel plans to steal natural gas from Lebanese territory and vows to defend the resources with its arsenal of rockets. Israel says the fields it is developing do not extend into Lebanese waters, a claim experts say appears to be correct, but the maritime boundary between the two countries – still officially at war – has never been precisely set.

“Lebanon’s need for the resistance has doubled today in light of Israeli threats to steal Lebanon’s oil wealth,” Hezbollah’s Executive Council chief Hashem Safieddine said last month. The need to protect the offshore wealth “pushes us in the future to strengthen the resistance’s capabilities.”The threats cast a shadow over what could be a financial boon for both nations, with energy companies finding what appear to be substantial natural gas deposits in their waters.

Israel is far ahead in the race to develop the resources. Two fields, Tamar and Dalit, discovered last year, are due to start producing in 2012, and experts say their estimated combined reserves of 5.5 trillion cubic feet (160 billion cubic meters) of natural gas can cover Israel’s energy needs for the next two decades.In June, the U.S. energy company Noble Energy, part of a consortium developing the fields, predicted that Israel will also have enough gas to export to Europe and Asia from a third field – Leviathan, thought to hold up to 16 trillion cubic feet (450 billion cubic meters) of gas.

Israel relies entirely on imports to meet its energy needs, spending billions to bring natural gas from Egypt and coal from a variety of countries. So just freeing the country from that reliance would have a major impact.When Tamar begins producing it could lower Israel’s energy costs by a $1 billion a year and bring $400 million a year in royalties into government coffers. That suggests a total of about $40 billion in savings and $16 billion in government revenues over the total yield of the field. Those numbers would only rise as Leviathan comes on line.

“Israel’s always looked for oil,” said Paul Rivlin, a senior research fellow with Tel Aviv University’s Dayan center. “But I don’t think it ever thought of itself as becoming a producer. And now that you’ve got a high-tech economy that’s doing quite well, this comes as an added bonus.”

Hezbollah’s warnings, however, quickly followed the announcement by Houston, Texas-based Noble Energy.Lebanese parliament speaker Nabih Berri, a Hezbollah ally, warned that Israel is “turning into an oil emirate while ignoring the fact that the field extends, according to the maps, into Lebanon’s territorial waters.”

Israel’s Petroleum and Mining commissioner at the National Infrastructure Ministry Yaakov Mimran, called those claims “nonsense,” saying Leviathan and the other two fields are all within Israel’s economic zone.”Those noises occur when they smell gas. Until then, they sit quietly and let the other side spend the money,” Mimran told the Israeli daily Haaretz.

Maps from Noble Energy show Leviathan within Israel’s waters. An official with Norway’s Petroleum Geo-Services, which is surveying gas fields in Lebanese waters, told The Associated Press that from Noble’s reports there is no reason to think Leviathan extends into Lebanon. The official spoke on condition of anonymity because he was not authorized by his company to speak on the subject.

The rumblings are worrisome because Israel and Hezbollah each accuse the other of intending to spark a new conflict following their devastating 2006 war. That fighting, in which Hezbollah’s capture of two Israeli soldiers in a cross-border raid sparked a massive Israeli bombardment, killed about 1,200 Lebanese and 160 Israelis.

Since then, there has been a rare interval of peace. Hezbollah, a close ally of Syria and Iran, has not fired a rocket into Israel since. Israeli officials, however, say they believe Hezbollah has managed to triple its prewar arms stockpile to more than 40,000 rockets.The warnings from Hezbollah and Berri could be as much for domestic consumption as directed as Israel, aiming to press for the passage of a long-delayed draft oil law, needed before any Lebanese fields can be developed.

Oil and gas exploration has been a source of disagreement between Lebanese politicians over the past decade. The change of several governments and disputes over what company should do the surveying have caused delays.In October, Petroleum Geo-Services said fields in Cypriot and Lebanese waters “may prove to be an exciting new province for oil and gas in the next few years,” noting signs of deposits in Lebanon, though their size is still not known. “It is very encouraging for Lebanon,” the PGS official told AP.

Any finds could help Lebanon’s government pay off what is one of the highest debt rates in the world, at about $52 billion, or 147 percent of the gross domestic product.Israel and Lebanon are among the few countries in the Middle East without substantial, lucrative natural resources. Israel has built a place for itself with a powerful high-tech sector, while Lebanon has boomed in recent years with tourism and real estate investment. While the gas may not transform them into Gulf-style spigots of petro-cash, it would be a major boost.

Rivlin doubts Israel could become a significant exporter, saying nearby countries don’t need or aren’t willing to buy from it, and the costs of liquifying gas for transport to further markets like Europe may be prohibitive. But Eytan Gilboa, a political science professor at Bar-Ilan University, said that with the world “so hungry for energy,” Israel won’t have a problem finding buyers.But the development raises security worries, as the offshore gas infrastructure could become a target. During the 2006 fighting, Hezbollah succeeded in hitting Israeli warships off Lebanon with its rockets.”Once those rigs start producing gas, it’s going to be difficult to secure them,” Gilboa said. “So on the one hand, you reduce dependency on imports in times of crisis, but at the same time, you make yourself vulnerable because those sites are exposed.” (AP)

Iraqi security forces backed by U.S. troops killed at least five people on Friday in a raid on suspected members of what Washington calls an Iranian-backed terrorist group

BASRA, Iraqi security forces backed by U.S. troops killed at least five people on Friday in a raid on suspected members of what Washington calls an Iranian-backed terrorist group, the U.S. military said. While overall violence in Iraq has fallen over the last two years, attacks and fighting remain common as Iraq gears up for a March 7 election and U.S. troops prepare to stop combat operations ahead of a withdrawal by the end of 2011.

The firefight with suspected members of Kata’ib Hizballah, a group that the U.S. State Department says has ties to Lebanon’s Hezbollah, occurred 265 km (165 miles) southeast of Baghdad in a village near the Iranian border. Twelve people were arrested.”The joint security team was fired upon by individuals dispersed in multiple residential buildings … members of the security team returned fire, killing individuals assessed to be enemy combatants,” the U.S. military said in a statement.”While the number of casualties has not yet been confirmed, initial reports indicate five individuals were killed,” it said without specifying who was killed in the raid.

Maitham Laftah, a member of the provincial council of Maysan province, said 10 people were killed, including two women, and five people wounded in the village 75 km (46 miles) north of the city of Amara. Eleven people were arrested, he said.Hospital sources in Amara put the death toll at eight killed, including a woman, and three wounded.A Reuters photographer who arrived after the firefight saw bloodstains on the ground and bullet holes in the walls.The U.S. military said that Iraqi and U.S. intelligence sources have spotted a recent increase in weapons smuggling by Iranian-backed militia like Kata’ib Hizballah. It gave no further information.(Reuters)

Three bombs planted under a car exploded south of Beirut

Three bombs

BEIRUT Three bombs planted under a car exploded south of Beirut on Saturday, killing one person and wounding several others in an attack that apparently targeted an official from the Palestinian militant group Hamas, the state-run news agency said.The official National News Agency said the explosion was caused by “three bombs tied to each other” that were placed under the car of an official believed to be from Hamas.It did not identify the targeted official or the victims. One of the wounded was in serious condition, the report said.Lebanese security officials told The Associated Press they could not independently confirm what caused the blasts or who the explosions targeted. The Lebanese militant group Hezbollah, which controls the area, sealed off the streets in the southern suburb of Haret Hreik and prevented journalists from getting close to the scene.One senior police official said the blast occurred in a neighborhood that houses an office belonging to Hamas.

The officials spoke on condition of anonymity because they were not authorized to speak to the media.Hezbollah’s Al-Manar TV only briefly mentioned the blast Saturday, quoting Lebanese security officials as saying “an explosion in Haret Hreik targeted an office belonging to Hamas, causing a number of casualties.” The broadcast offered did not elaborate, and a Hezbollah official contacted by The Associated Press said he had no information.

Osama Hamdan, the Hamas representative in Lebanon, was not available for comment Saturday and had no information, according to a person who answered his mobile phone. Other Hamas officials in Beirut and neighboring Syria, which shelters the exiled leadership of Hamas, did not answer repeated calls.The explosion comes on the even of Ashoura, Shiite Islam’s most important religious holiday.Explosions in the area, which is almost completely controlled by the Shiite Hezbollah, are rare. Hezbollah has its own arsenal with tens of thousands of rockets and missiles, which it says it needs to fight off any threat from Israel.

The area was bombed out by Israel during the monthlong 2006 war with Hezbollah.Hezbollah leader Sheik Hassan Nasrallah is expected to address tens of thousands of supporters commemorating the Ashoura holiday by video link on Sunday.The explosion Saturday night occurred about 700 meters (2,300 feet) from a complex where hundreds of Shiite Hezbollah supporters were holding a ceremony commemorating Ashoura and listening to a live televised speech by Nasrallah.Ashoura marks the death of Imam Hussein, the Prophet Muhammad’s grandson, who died in a battle in 680 against the leader of what became the Sunni branch of Islam. The battle took place in the Iraqi city of Karbala.