Business / Economy
Zimbabwe bans rough diamonds export
24 Jul 2014 at 09:44hrs | Views
CABINET on Tuesday directed Mines and Mining Development minister Walter Chidakwa to immediately stop the export of rough diamonds to ensure the country gets maximum value for its minerals.
Chidhakwa confirmed the development yesterday when he told delegates at the on-going Mine Entra conference at the Zimbabwe International Trade Fair (ZITF) in Bulawayo that government had realised that it was "not proper or rational" to be continuously offloading rough diamonds.
"What do we do with our diamonds? We cannot continue to export rough diamonds as it is not proper, not rational and does not augur well for our economic development.
"We must embark on serious value addition programmes that include the cutting and polishing of diamonds and manufacturing of jewellery," said Chidhakwa.
He said the issue was extensively discussed and Cabinet agreed and directed that "we implement the new institutional programme".
Zimbabwe has been exporting rough diamonds to the international market losing vast amounts in potential revenue earnings and the government now wants the country to instead export cut germs and crafted jewellery.
Chidhakwa said they had been locked in negotiations for the past two months with prospective investors looking at having "access to Zimbabwe diamonds for the purposes of driving their own manufacturing sectors".
"India has built an entire city underpinned by the diamonds from Zimbabwe but us the source of the diamonds do not have anything to show in terms of value addition.
"We are looking at the possibility of trading diamonds for value addition. They want our diamonds and they have experience of cutting and polishing and manufacturing jewellery and marketing outlets across the world.
"We want to sell our diamonds to those countries but they must help us break into the international market not to sell rough diamonds but to sell cut and polished products. We must have a footprint in the world market," he added.
Earlier this year, President Robert Mugabe travelled to the United Arab Emirates and visited the Dubai Diamond Exchange (DDE) as the government sought new markets for the country's diamonds.
During the visit, Mugabe gave DDE his seal of approval.
Zimbabwe sold about 400 000 carats of diamonds at the DDE in March this year generating $30 million.
Meanwhile, Chidhakwa also revealed that the long-punted Lupane gas project had kicked off, more than a decade after it was first mooted.
Chidhakwa said the quality of gas being extracted in Lupane was of high standards.
He, however, declined to disclose the name or origin of the firm extracting the gas.
Industry experts believe that the Hwange area holds vast deposits of coal-bed methane gas - estimated to be 95% pure methane - hidden between Hwange and neighbouring Botswana.
In 2007, the government declared the gas project a priority area.
Studies have indicated that coal-bed methane deposits in the country have the capacity to produce 300MW of electricity.
Chidhakwa confirmed the development yesterday when he told delegates at the on-going Mine Entra conference at the Zimbabwe International Trade Fair (ZITF) in Bulawayo that government had realised that it was "not proper or rational" to be continuously offloading rough diamonds.
"What do we do with our diamonds? We cannot continue to export rough diamonds as it is not proper, not rational and does not augur well for our economic development.
"We must embark on serious value addition programmes that include the cutting and polishing of diamonds and manufacturing of jewellery," said Chidhakwa.
He said the issue was extensively discussed and Cabinet agreed and directed that "we implement the new institutional programme".
Zimbabwe has been exporting rough diamonds to the international market losing vast amounts in potential revenue earnings and the government now wants the country to instead export cut germs and crafted jewellery.
Chidhakwa said they had been locked in negotiations for the past two months with prospective investors looking at having "access to Zimbabwe diamonds for the purposes of driving their own manufacturing sectors".
"India has built an entire city underpinned by the diamonds from Zimbabwe but us the source of the diamonds do not have anything to show in terms of value addition.
"We are looking at the possibility of trading diamonds for value addition. They want our diamonds and they have experience of cutting and polishing and manufacturing jewellery and marketing outlets across the world.
Earlier this year, President Robert Mugabe travelled to the United Arab Emirates and visited the Dubai Diamond Exchange (DDE) as the government sought new markets for the country's diamonds.
During the visit, Mugabe gave DDE his seal of approval.
Zimbabwe sold about 400 000 carats of diamonds at the DDE in March this year generating $30 million.
Meanwhile, Chidhakwa also revealed that the long-punted Lupane gas project had kicked off, more than a decade after it was first mooted.
Chidhakwa said the quality of gas being extracted in Lupane was of high standards.
He, however, declined to disclose the name or origin of the firm extracting the gas.
Industry experts believe that the Hwange area holds vast deposits of coal-bed methane gas - estimated to be 95% pure methane - hidden between Hwange and neighbouring Botswana.
In 2007, the government declared the gas project a priority area.
Studies have indicated that coal-bed methane deposits in the country have the capacity to produce 300MW of electricity.
Source - newsday
