Maravi

Zim could be No 1 diamond producer in 3 yrs

Zim could be No 1 diamond producer in 3 yrs
By: Reuters-TZG reporters
Posted: Tuesday, August 31, 2010 6:19 pm

THE diamond output from Zimbabwe's Marange fields will reach 40 million carats in the next three years, with annual revenues expected at around $2 billion, a government adviser said on Tuesday.

The government says it has stockpiled 4.5 million carats from its two joint venture mines in Marange since January. Last month the country sold its first stones after approval from global diamond industry regulator, the Kimberley Process (KP).

"With the new diamond find in Chiadzwa (Marange), we're estimated at 40 million carats per year and $2 billion per year in revenue," Belgian diamond expert Filip van Loere, who is advising the government on ensuring compliance with the KP, said in an interview.

He is advising the government on ensuring compliance with the KP.

"Zimbabwe has been propelled to the number one spot as the world's most important player and it will be number three in value.

"That is estimated to come along within the next two to three years."

Zimbabwe's uinclusive Government, formed by President Robert Mugabe and Morgan Tsvangirai, now prime minister, says it needs $10 billion to fix the economy ravaged by western imposed sanctions.

Van Loere said Zimbabwe could surpass top diamond producers like Russia, Botswana and South Africa, but said a sudden increase in output on the global market could force prices down.

"The main issue for Zimbabwe is to be careful in harvesting this resource. Zimbabwe might add 20 percent to global trade, but then prices will go down at least 60-70 percent, so we have to be responsible.

"Zimbabwe should not become the main producer just for the sake of it," van Loere said.

The government has formed two joint venture firms -- Mbada Diamonds and Canadile Miners -- with South African partners to mine the Marange diamonds, but van Loere said there was scope for more mines in the vast fields.

On Tuesday, Canadile Miners launched the construction of a $20 million diamond processing and auction centre to the west of the capital Harare at Mount Hampden.

"Currently, the two mines occupy 10 percent of the total area. We need two or three more firms in the area," said van Loere.

Labels: DIAMONDS

posted by MrK @ 5:28 AM