Maravi

(TALKZIMBABWE) Zimbabwe top diamond producer in three years — Mpofu

Zimbabwe top diamond producer in three years — Mpofu
By: TH
Posted: Monday, October 18, 2010 1:19 am

ZIMBABWE could soon become a top diamond producing country in the world and output from Marange could easily top 40 million carats in three years, Mines and Mining Development Minister Obert Mpofu has said.

Minister Mpofu made the remark after visiting India’s diamond city of Surat last week where he signed a Memorandum of Understanding on trade in diamonds with Surat Rough Diamond Sourcing India Limited (SRDSIL).

He said revenue from diamond mining operations of the Zimbabwe Mining Development Corporation and its partners Mbada and Canadile, in the Marange fields would top US$2 billion annually within the next three years.

Mbada and Canadile, said Minister Mpofu, were only mining 10 percent of the 77 000 square hectares of land pregnant with diamond reserves.

"The two diamond-mining firms are extracting diamonds from 1 000-hectare land. We have the remaining 76 000 hectares land having a huge reserve of diamonds. If it is exploited then we may become the world’s top diamond producing country," said Minister Mpofu.

Zimbabwe was currently producing 1.5 million carats a month from Marange and the country had potential to add 20 percent to global diamond output and the country would exercise restraint as that could lead to a crash of diamond prices on international markets, the minister said.

"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 by at least 60 to 70 percent, so we have to be responsible," he said.

Zimbabwe seeks to cultivate long term relations with end users of its diamonds hence the MoU with SRDSIL to avoid selling the gems through many channels, which in many instances result in suppressed prices.

Zimbabwe accumulated a stockpile of six million carats of diamonds during period when the country was denied Kimberley Process (KP) certification for the sale of all the diamonds from the Marange fields. India’s support is required to clear the diamonds stockpile now being auctioned on a regular basis.

"We are a KP compliant country, but there are forces in the Western countries who are selfishly pursuing their foreign policy thrusts tarnishing our image. We want to effectively use our mineral resources for our unemployed youths. Our children are dying because of lack of medical care," said Minister Mpofu.

SRDSIL chairman Mr Ashit Mehta said: "India and especially Surat is committed to help Zimbabwe by all means. Be it training their unemployed youths or setting up factories there. All we want is long-term association in terms of rough diamond supply."

The Indian Diamond Institute has proposed to train young workers of Zimbabwe in diamond designing, cutting and polishing. Mr Aagam Sanghavi, chairman of IDI, said,

"We will train the young talents of Zimbabwe in diamond cutting and polishing. If need be, we would also set up an institute in Harare so that the unemployed youths can be trained and they start adding value to the diamonds."

These positive developments come as it emerged the country might be sitting on more diamond deposits in at least three provinces, which Minister Mpofu would not reveal, but said the State would move in to explore and exploit the resources.

Such news would however certainly not augur well with some Western countries and the United States pushing for Zimbabwe’s ouster from the KP even though the country has done all in its capacity to comply with the scheme’s requirements.

Zimbabwe critically requires liquid cash inflows to fund budgetary requirements at a time that its tax revenue generating capacity is constrained and has fewer friends willing to extend significant lines of credit.

Labels: DIAMONDS, KIMBERLEY PROCESS, OBERT MPOFU

posted by MrK @ 11:04 PM