Zim gems to rule world market

via Zim gems to rule world market

Diamonds mined in Marange are projected to dominate the world market for the next five years amid reports that production from other countries is rapidly dwindling. This comes as Zimbabwe is expected to earn about US$700 million from the sale of the precious stones this year, with a record 16,9 million carats set to be produced from Marange. According to a report released by the Companies Diamond Industry Series last month, the country will satisfy up to 30 percent of world diamond demand by 2015 as leading diamond groups such as Alrosa (Russia) and De Beers are likely to reduce production by venturing into underground mining.

Marange diamonds, which are being mined in an area covering over 120 000 hectares, are closer to the ground, as they are mined through the open cast system. The report was compiled by internationally reputable consultants to give insights into world diamond trade.

Reacting to the report, Resource Exploitation Watch chairman Mr Tafadzwa Musarara said the developments would force hostile nations to change their stance on Zimbabwe. He said this has happened in countries such as Angola where Westerners were initially working against authorities in that country.

“The prospect of Zimbabwe leading in the diamond industry will automatically force hostile countries to change their foreign policy on Zimbabwe,” he said.

“This clearly shows that the sanctions that were imposed on Marange are not only hurting Zimbabwe, but also suffocating keen investors.”

The report states that the Marange diamonds are a key discovery with a massive impact on the international market. It also lauds the companies operating at the fields for their large-scale production. Mbada Diamonds, Anjin, Marange Resources, and Diamond Mining Corporation are the companies mining in Marange.

“Diamond forecasters place confidence in their forecasts for declining world diamond production because it is relatively easy to monitor what is happening at kimberlite mines,” reads the report. The majority of the world’s important kimberlite mines are moving into full underground mining, a clear sign that diamond reserves have become greatly depleted.

“Moreover, underground mining increases the chances that producers will miss production targets as it is more expensive and more complex. Add to this, it can take anything from five to 20 years for a newly discovered kimberlite pipe that contains diamonds to go into production.

“Our view is that diamonds from Marange are a major discovery of diamonds in the global scheme of things. Companies operating in Marange are reportedly producing four carats per tonne, which really is quite impressive.” The report warns Western countries working to discredit Marange diamond sales to seriously consider working with Zimbabwe, as the gems will increasingly become crucial to the world market. It also states that although only five companies are operating at the fields, there is vast scope for more firms to operate in the area.

“Those still holding out against Zimbabwe must be urged to accept trade in Marange diamonds. Conflict and human rights violations in Zimbabwe are tremendously exaggerated to comply with political positions.

“Diamond experts estimate that between 11 to 16 mines can profitably do business in Chiadzwa and each could produce about 10 million carats per year. Mining experts also added that over 200 diamond kimberlite pipes have been discovered countrywide. Production statistics from the Kimberley Process show that Zimbabwe officially produced 3,8 million carats of diamonds valued at $174,8 million between the years 2003 to 2009, and 8,5 million carats in 2010.”

Another report by local financial institution AfrAsia Kingdom estimates Marange will produce 17 million carats this year alone. The report notes that although Zimbabwe’s huge diamond deposits are an advantage, the country’s Achilles’ heel is that its gems are sold at some of the lowest prices on the market because of a combination of factors that include their roughness and sanctions imposed on the country.

“Marange diamond fields are expected to produce 16,9 million carats in 2013, which would make the project the largest in the world in terms of carats produced annually. Zimbabwe is the fourth largest diamond producing nation in the world, and the Marange fields represent almost all of the nation’s production,” reads the report.

 

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6 comments on “Zim gems to rule world market
  1. Sekuru Mapenga says:

    Wow! Hopefully we will become a middle income country across the board from this diamond wealth, and it will not be diverted by corruption into just a few pockets!

    • GBZ says:

      Ha ha have you woken up from you sweet little dream and found your coffee cold? Not with this corrupt bunch of monkeys in office…we dont have a hope of a smell of the cash! Now back to sleep and wake up in the real Zimbabwe pal…

    • Art says:

      Uncle, what are you smoking? Don’t you know the zero sum game rules? Not just elitists leg up, but everyone else squashed down.

  2. eztechplc says:

    A very misleading report aimed at misleading the Zimbabweans and its politicians. I dont know whether Russia and China are in the west (western nations)? Zimbabwe used to produce gold….recently a Russian company closed one mine due to Zesa challenges. Zimbabwe had copper, strong agriculture bla bla. With non indigeneous not allowed to be major shareholders, how on earth will such western countries put a hand in Zim? One last thing, do you think they are silly not to ask Malaysia about the remaining life in the Zim leader? Yu think when they want they can not decide when he must rest in his grave…..you know asiagate scandals, they want money, full stop.

  3. masvukupete says:

    In 2012 Debswana, a 50/50 partnership between Botswana and De beers (a so called colonial master), contributed $ 700 million directly to the Botswana government through dividends, taxes and licences. It contributed a further $5 billion or so into the economy through operations such as salaries, income taxes, suppliers, spares, fuel, IT, etc. Even if they plunder resources with this kind of contribution, we are certainly barking up the wrong tree. In the final analysis its not the profit that is important (shareholding) it is the operations as they contribute a lot more to a lot more people than the profit. On paper De beers “pocketed” less than what the whole economy of Botswana pocketed. Therefore even if foreigners own the companies their operation costs contribution to the economy will definitely outstrip the profits that they pocket unless obviously the company is making super profits. From my experience very small companies make more than 30% gross profits. Most real operations make up to 20% GROSS PROFIT. Unfortunately Botswana does not produce anything in our case if we had 3-4 debswana type companies (Marange, Zisco, Zim Alloys, Bata, Zimasco, David Whithead, BNC, Cone Textiles, Zimcast, Dunlop, Merlin, Supersonic, Zim phos, Sable) operating properly we would be in the promised land. These companies could easily contribute more than $10 billion/year in operations into the economy of Zimbabwe whilst the owners (whether foreign or not) will be pocketing about $1 billion or so. Obviously the owners will get 1 billion but the economy will be 10billion richer.

  4. Patriot says:

    Who would need the cleanest elections in such environment. Definitely not all parties. Even next of next time.This is probably the environment for REQUISITE better than ” generally credible” elections.

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