(NEWZIMBABWE) US$1.2bil diamond deal sealed
US$1.2bil diamond deal sealedby
23/10/2010 00:00:00
INDIAN firm SURAT Rough Diamond Sourcing has signed a US$1.2 billion rough diamond supply deal with a group of local entrepreneurs trading as Zimbabwe Diamond Consortium.
The state-run Herald newspaper reported that the deal was concluded in Harare on Friday. Under the arrangement, SRDSIL will buy a minimum of US$I00 million worth of rough diamonds a month.
SRDSIL is a consortium of 1 500 Indian diamond companies based in Surat which is considered the commercial capital of the state of Gujarat.
The deal was signed by SRDSIL chairman Ashit Mehta and his ZDC counterpart, Supa Mandiwanzira.
Empowerment Minister Saviour Kasukuwere, Mines Deputy Minister Gift Chimanikire, India’s Ambassador to Zimbabwe and other government officials attended the event.
A 24-member delegation of Indian diamond industry players, all members of SRDSIL, was in Harare to seal the deal.
In exchange for guaranteed sales of US$1.2 billion a year, the Indians promised to train 1 000 young Zimbabweans in designing, cutting and polishing diamonds.
The youths will be sent to India on conclusion of the first sale worth US$100 million.
The Indian company will also assist Zimbabweans in developing a strong diamond beneficiation industry.
The Indian diamond manufacturing industry accounts for 14 out of every 15 rough diamond stones cut and polished in the world.
Surat is the world centre for diamond beneficiation and is the fastest growing city in India and second in the globe, thanks to diamonds and the textiles.
Experts say Zimbabwe could account for between 25 and 35 percent of world diamond production.
Rio Tinto and a Saudi company were already mining diamonds in Zimbabwe before two other mining companies were licensed to mine alluvial fields in Marange.
Three more companies have recently been licensed and will also start mining soon, according to Mines and Mining Development Minister Obert Mpofu.
posted by MrK @ 10:28 PM
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