News / National
Zimbabwe to resume diamond sales
12 Jan 2018 at 05:33hrs | Views
Zimbabwe is planning to resume auction of diamonds next month, having suspended sales in February last year following the merger in 2016 of companies previously operating in the Chiadzwa area of Marange, Manicaland province.
The companies were merged into the Zimbabwe Consolidated Diamond Company (ZCDC). ZCDC chief executive officer Dr Moris Mpofu, is on record saying sales had been stopped to allow the new company, in which the government is the major shareholder, to create an effective diamond sorting and evaluation system.
Mines and Mining Development Minister Winston Chitando confirmed the impending auction, but did not divulge the amount of carats that would be put up for sale. Statistics show that Zimbabwe's diamond production rose to 1,8 million carats last year, up from 961 000 carats mined in 2016.
"During the last year in 2017, no diamonds were sold. There will be a first batch which is due for sale in February," Mr Chitando said. He said following the auction, a modus operandi which covers controls and accountability issues relating to future diamond sales, among other things, would be announced.
Zimbabwe had pinned hopes for enhanced economic revival and growth on diamonds, since their discovery in Chiadzwa over a decade ago. But with more than five companies having been licensed to mine the gems, the economy did not benefit from the mining activities with former President Mugabe alleging that the country could have been prejudiced of at least $15 billion in potential diamond revenue.
The lack of transparency prompted the government to create the ZCDC in a bid to promote accountability in the sector. To enhance earnings from the sector, the ZCDC has started work to mine conglomerate diamonds, which have more value than alluvials which were being mined since the discovery of the precious stones in Chiadzwa in 2006. The ZCDC has also invested $80 million in exploration activities and purchasing equipment.
The companies were merged into the Zimbabwe Consolidated Diamond Company (ZCDC). ZCDC chief executive officer Dr Moris Mpofu, is on record saying sales had been stopped to allow the new company, in which the government is the major shareholder, to create an effective diamond sorting and evaluation system.
Mines and Mining Development Minister Winston Chitando confirmed the impending auction, but did not divulge the amount of carats that would be put up for sale. Statistics show that Zimbabwe's diamond production rose to 1,8 million carats last year, up from 961 000 carats mined in 2016.
"During the last year in 2017, no diamonds were sold. There will be a first batch which is due for sale in February," Mr Chitando said. He said following the auction, a modus operandi which covers controls and accountability issues relating to future diamond sales, among other things, would be announced.
Zimbabwe had pinned hopes for enhanced economic revival and growth on diamonds, since their discovery in Chiadzwa over a decade ago. But with more than five companies having been licensed to mine the gems, the economy did not benefit from the mining activities with former President Mugabe alleging that the country could have been prejudiced of at least $15 billion in potential diamond revenue.
The lack of transparency prompted the government to create the ZCDC in a bid to promote accountability in the sector. To enhance earnings from the sector, the ZCDC has started work to mine conglomerate diamonds, which have more value than alluvials which were being mined since the discovery of the precious stones in Chiadzwa in 2006. The ZCDC has also invested $80 million in exploration activities and purchasing equipment.
Source - New Ziana.
