'Harare diamond sale a boon for local diamond miners'

About 140 diamond buyers are participating at the country's biggest diamond sale which opened on Monday, giving local diamond miners a golden opportunity to sell their products locally.

From now on the country is expected to sell its precious gems locally every month-end, a development that is likely to improve cash flows for all diamond miners.

During a recent sale where only Marange Resources and Diamond Mining Company participated, miners complained that buyers offered half of the international prices with players suspecting connivance among the buyers.

This year all seven diamond mining companies in the country are selling their produce at the sale conducted at the Minerals Marketing Corporation of Zimbabwe offices closing on November 6.

Mines and Mining Development permanent secretary Professor Francis Gudyanga, on Monday said the onus was now on miners to produce enough gems to meet demand.

"We have a bumper number of buyers participating at this tender — about 140 of them," he said.

"It is a good sign for the country as it stands to benefit from these local sales. The challenge we have now is: are we producing enough? We are therefore urging all the companies to make sure they produce as much as they can to satisfy the demand.

"We intend to have these (sales) monthly as all the companies would wish. It is a very transparent exercise where we have an independent facilitator and our people are there as well."

About 25 valuators from 12 companies mainly India, Namibia, South Africa and Zimbabwe participated at the tender.

But Prof Gudyanga said that was unlikely to be the case this time around as more buyers were coming.

"As long as we have many buyers it will push the prices (up) because it follows demand. It is a self adjusting industry," he said.