Business / Economy
Govt announces measures to secure diamond sector
29 Nov 2013 at 10:05hrs | Views
Government has announced measures aimed at strengthening the security and accounting systems in the local diamond industry value chain with the aim of ensuring increased transparency and accountability.
According to information from the Ministry of Mines and Mining Development, all diamond producers have until the 1st of January to install closed-circuit television (CCTV).
The CCTV will be linked to central government through the Zimbabwe Mining Development Corporation (ZMDC).
The diamond mining firms are also expected to install diamond cleaning equipment by the 1st of February and will be compelled to sell diamonds only after appropriate cleaning.
The Mines and Mining Development Minister, Cde Walter Chidhakwa says an agreement has already been reached with the local diamond producers for the adoption of internal control measures aimed at improving diamond security and accounting systems.
"Diamonds are low volume and high value products and security is of paramount importance. There is therefore need to strengthen security and accounting systems throughout the value chain, from mining to marketing and account for every carat produced," Minister Chidhakwa said.
According to Minister Chidhakwa, the local diamonds have not been fetching more as a result of the failure by producers to remove the carbon coating on the surface of the diamonds.
"Diamond cleaning is important to remove the carbon coating on the surfaces of the diamonds. This enhances visibility necessary in objectively determining colour and clarity of the diamonds, which are some of the key characteristics in determining value," said Cde Chidhakwa.
The cleaning of rough diamonds before marketing is envisaged to improve their valuation.
The mining sector which has emerged as the anchor of the local economy is anticipated to play a significant role in stimulating the local economy through the increased export earnings, employment creation and supporting of downstream industries.
According to information from the Ministry of Mines and Mining Development, all diamond producers have until the 1st of January to install closed-circuit television (CCTV).
The CCTV will be linked to central government through the Zimbabwe Mining Development Corporation (ZMDC).
The diamond mining firms are also expected to install diamond cleaning equipment by the 1st of February and will be compelled to sell diamonds only after appropriate cleaning.
The Mines and Mining Development Minister, Cde Walter Chidhakwa says an agreement has already been reached with the local diamond producers for the adoption of internal control measures aimed at improving diamond security and accounting systems.
"Diamonds are low volume and high value products and security is of paramount importance. There is therefore need to strengthen security and accounting systems throughout the value chain, from mining to marketing and account for every carat produced," Minister Chidhakwa said.
According to Minister Chidhakwa, the local diamonds have not been fetching more as a result of the failure by producers to remove the carbon coating on the surface of the diamonds.
"Diamond cleaning is important to remove the carbon coating on the surfaces of the diamonds. This enhances visibility necessary in objectively determining colour and clarity of the diamonds, which are some of the key characteristics in determining value," said Cde Chidhakwa.
The cleaning of rough diamonds before marketing is envisaged to improve their valuation.
The mining sector which has emerged as the anchor of the local economy is anticipated to play a significant role in stimulating the local economy through the increased export earnings, employment creation and supporting of downstream industries.
Source - zbc
