News / National
Russia's state diamond company trying to get diamond mining contracts in Zim
16 Jun 2011 at 10:41hrs | Views
Surat's diamond merchants are worried about reports that Russia's state diamond repository 'Gokhran' is trying hard to get rough diamond mining contracts in Zimbabwe's Marange diamond field.
The development has come after a Chinese company, Anjin, made inroads into Zimbabwe by becoming the biggest diamond mining company and the Chinese government pledging full support to clear the country from the Kimberley Process (KP). Diamond merchants here fear that this will ultimately make rough diamonds costlier.
The 60,000-hectare Marange diamond field in Zimbabwe's east is considered as the biggest find of alluvial diamonds in the history of diamond mining. Potential revenue from the Marange diamond field is estimated at $1.5 billion to $2 billion a year.
The ambassador of the Russian Federation to Zimbabwe, Andrey Kushakov, is reported to have said that Russia has pledged to invest in mining and infrastructure development in Zimbabwe as a way of supporting the southern African country and further strengthening bilateral relations.
Andrey stated that Russia's state diamond repository, Gokhran, will be investing in diamond mining in Zimbabwe. Industry sources here said diamantaires will have to depend on Russia and China for rough diamond supplies. Surat, the world largest diamond cutting and polishing hub, is the ultimate user of the Zimbabwean goods.
"It is a big blow to Indian diamond manufacturers. Both, Russia and China, will secure the diamond resources of Zimbabwe and ultimately sell it to Indian diamond traders via Antwerp, Hong Kong and Dubai," chairman of Blue Star Group Ashit Mehta said. According to Mehta, it is time for the Union government to wake up and take a call on Zimbabwe. The Surat industry is in dire need of raw material and only Zimbabwe can fulfill the requirements.
A rough diamond dealer Rakesh Patel said, "Zimbabwe has a stockpile of about $4 to $5 billion worth of diamonds. Once the KP would clear Zimbabwe from exporting the diamonds, Russia and China will buy most of the stockpile. The same diamonds will come to India through different channels at high premium rates."
The development has come after a Chinese company, Anjin, made inroads into Zimbabwe by becoming the biggest diamond mining company and the Chinese government pledging full support to clear the country from the Kimberley Process (KP). Diamond merchants here fear that this will ultimately make rough diamonds costlier.
The 60,000-hectare Marange diamond field in Zimbabwe's east is considered as the biggest find of alluvial diamonds in the history of diamond mining. Potential revenue from the Marange diamond field is estimated at $1.5 billion to $2 billion a year.
Andrey stated that Russia's state diamond repository, Gokhran, will be investing in diamond mining in Zimbabwe. Industry sources here said diamantaires will have to depend on Russia and China for rough diamond supplies. Surat, the world largest diamond cutting and polishing hub, is the ultimate user of the Zimbabwean goods.
"It is a big blow to Indian diamond manufacturers. Both, Russia and China, will secure the diamond resources of Zimbabwe and ultimately sell it to Indian diamond traders via Antwerp, Hong Kong and Dubai," chairman of Blue Star Group Ashit Mehta said. According to Mehta, it is time for the Union government to wake up and take a call on Zimbabwe. The Surat industry is in dire need of raw material and only Zimbabwe can fulfill the requirements.
A rough diamond dealer Rakesh Patel said, "Zimbabwe has a stockpile of about $4 to $5 billion worth of diamonds. Once the KP would clear Zimbabwe from exporting the diamonds, Russia and China will buy most of the stockpile. The same diamonds will come to India through different channels at high premium rates."
Source - timesofindia.indiatimes.com
