140 diamond buyers for local sale

via 140 diamond buyers for local sale | The Herald 31 October 2014 by Lloyd Gumbo

About 140 diamond buyers are participating at the local diamond sale that opened in Harare on Monday. All seven diamond mining companies in the country are selling their produce.
This is Zimbabwe’s biggest diamond sale locally. From now on the country is expected to sell its precious gems locally every month-end, a development that is likely to improve cash flows for all diamond miners.

The tender, run through an independent facilitator in line with international best practices, will close on November 6.

The sales are being conducted at the Minerals Marketing Corporation of Zimbabwe offices.

Mines and Mining Development permanent secretary Professor Francis Gudyanga, on Monday said the onus was now on miners to produce enough gems to meet demand.

“We have a bumper number of buyers participating at this tender — about 140 of them,” he said.

“It is a good sign for the country as it stands to benefit from these local sales. The challenge we have now is: are we producing enough? We are therefore urging all the companies to make sure they produce as much as they can to satisfy the demand.

“We intend to have these (sales) monthly as all the companies would wish. It is a very transparent exercise where we have an independent facilitator and our people are there as well.”

During a recent sale where only Marange Resources and Diamond Mining Company participated, miners complained that buyers offered half of the international prices with players suspecting connivance among the buyers.

About 25 valuators from 12 companies mainly India, Namibia, South Africa and Zimbabwe participated at the tender.

But Prof Gudyanga said that was unlikely to be the case this time around as more buyers were coming.

“As long as we have many buyers it will push the prices (up) because it follows demand. It is a self adjusting industry,” he said.

Marange Resources acting chief executive, Mr Mark Mabhudhu, confirmed the sale.

“We are participating with everyone else. The facility (at MMCZ) is very nice, even better than some international ones. We are expecting good sales,” he said.

“It is the first time that all producers are participating at the same time under the same conditions according to international best practices.

“The good thing is that now it opens opportunity for players to go and sell whenever they have sufficient stock under similar conditions.

“This will help us in cash flow that will enable us to pay our obligations.

“The important thing is that there is a tender manager, which removes interaction between those who produce and the buyers and it allows candid negotiations,” said Mr Mabhudhu.

DMC general manager, Mr Ramsey Malik, welcomed the current tender, saying it would go a long way in improving the local diamond industry.

“It is a first that all diamond mining companies will offer their production to both international buyers and local diamond producers,” he said.

“This is the way normal business is conducted You have to be given the chance to sell when you want to and when your company is in need of funds for operational needs.”

Anjin Investments public relations executive, Ms Martha Chikata said: “Yes, we are participating in the local sale.

“In many cases it’s not the first time we have conducted a local sale, we have conducted many local sales in the past as long as it can attract good numbers of buyers offering competitive prices.”