Zimbabwe diamond firms struggle, says Chinamasa

A mere 972 765 diamond carats were produced in the first six months of the year against a target of 6 million, Finance Minister Patrick Chinamasa has disclosed.

"Cumulative diamond output for the first six months of the year to June 2016 stood at 972 765 carats, with most firms losing production time during the month of February when Government moved in at Chiadzwa to consolidate the diamond sector," Chinamasa told legislators during his mid-term fiscal policy review statement  in parliament today.

Chinamasa said since March 2016, the Zimbabwe Consolidated Diamond Company (ZCDC) has been the sole producer of diamonds at Chiadzwa diamond fields, producing during the period to June as follows: March, 218 274 carats; April, 261 646 carats; May, 120 686 carats and June, 58 396 carats.

"The relatively low output levels, against a target of 6 million carats, is attributed to the lack of adequate capital on the part of operating companies under ZCDC as well as reluctance by previous companies to merge into the newly formed company. "Furthermore, the country is losing out on lost diamond production from the three concessions which are not yet operational.

"There is, therefore, need to expedite the consolidation of all the concessions under one roof.

"Meanwhile, to enhance diamond production at Chiadzwa, negotiations are underway for ZCDC to acquire machinery from Development Trust of Zimbabwe-Econendra of Russia (DTZOZGEO).

"Furthermore, plans are on course to acquire additional modern equipment to enable ZCDC to undertake conglomerate mining".