Business / Economy
Cost of production at Marange is cheaper than in Australia and Canada: ZMDC
02 Apr 2011 at 13:10hrs | Views
THE cost of production of the precious gems mined in Marange area in the eastern part of the country has proved to be cheaper than the one in Australia and Canada, it has been revealed.
Addressing delegates at the Zimbabwe Investment Conference recently, Zimbabwe Mining Development Corporation (ZMDC) chairman Mr. Godwills Masimirembwa said diamond mining in Zimbabwe was cheaper and it was high time investors should invest their money in the country.
"The average cost of production per carat of the operations at Marange reserves are between US$19 and US$30 and this is a clear indication that they are cheap as compared to other countries' cost of production," said Mr. Masimirembwa.
He compared the situation with the one in countries such as Canada and Australia saying the two countries forked out millions of dollars to be able to mine diamonds in the snow areas.
"Vocal countries on Marange diamonds, Australia and Canada want to protect their industries at the expense of Zimbabwe.
"Agile poured in US$800 million in 2010 in the biggest diamond mine in Australia and Canada are digging deep in snow and these operations are far more expensive than Marange," explained Mr. Masimirembwa.
He said Zimbabwe was not going to give up on the diamond mining at the expense of the economic sanctions which are causing difficulties for the country to sell its diamonds.
Mr. Masimirembwa added that ZMDC walked a thorny path trying to get the Kimberly Process Certification.
"ZMDC has struggled to obtain the KPCS and over US$80 million diamonds sold have been blocked in Dubai due to a 17 November order banning export of Marange diamonds and financial institutions are refusing customers top transfer funds to Zimbabwe," explained Mr. Masimirembwa.
Mr. Masimirembwa said Zimbabwe has no problems with the partner companies forwarding their profits to their respective countries, showing that the country does not have restrictive trading laws with investors.
Addressing delegates at the Zimbabwe Investment Conference recently, Zimbabwe Mining Development Corporation (ZMDC) chairman Mr. Godwills Masimirembwa said diamond mining in Zimbabwe was cheaper and it was high time investors should invest their money in the country.
"The average cost of production per carat of the operations at Marange reserves are between US$19 and US$30 and this is a clear indication that they are cheap as compared to other countries' cost of production," said Mr. Masimirembwa.
He compared the situation with the one in countries such as Canada and Australia saying the two countries forked out millions of dollars to be able to mine diamonds in the snow areas.
"Vocal countries on Marange diamonds, Australia and Canada want to protect their industries at the expense of Zimbabwe.
"Agile poured in US$800 million in 2010 in the biggest diamond mine in Australia and Canada are digging deep in snow and these operations are far more expensive than Marange," explained Mr. Masimirembwa.
He said Zimbabwe was not going to give up on the diamond mining at the expense of the economic sanctions which are causing difficulties for the country to sell its diamonds.
Mr. Masimirembwa added that ZMDC walked a thorny path trying to get the Kimberly Process Certification.
"ZMDC has struggled to obtain the KPCS and over US$80 million diamonds sold have been blocked in Dubai due to a 17 November order banning export of Marange diamonds and financial institutions are refusing customers top transfer funds to Zimbabwe," explained Mr. Masimirembwa.
Mr. Masimirembwa said Zimbabwe has no problems with the partner companies forwarding their profits to their respective countries, showing that the country does not have restrictive trading laws with investors.
Source - Byo24News
