Zimbabwe gets $29M from Dubai diamond sales, unsure of venue for fourth tender

via Zim gets $29mln from Dubai diamond sales, unsure of venue for fourth tender | The Source  April 7, 2014

Zimbabwe plans to hold a fourth diamond auction within a month after earning $29 million from its latest tender in Dubai but is unsure of the venue, the mines minister, Walter Chidhakwa said on Monday.

The government held its first two auctions of rough diamonds at the Antwerp World Diamond Centre (AWDC), but opted to sell the third lot last month at the Dubai Diamond Exchange (DDE).

The Dubai tender, facilitated by Global Diamond Tenders DMCC, realised a total of $29,2 million from 380,626 carats, at an average price of $76,91 per carat, earning the government $4,39 million in royalties.

Zimbabwe’s seven alluvial diamond miners; Anjin Investments, Jinan, DTZ, Diamond Mining Company, Marange Resources, Mbada Diamonds and Kusena took part in the tender.

The first auction, held in December last year, realised $9,8 million at an average of $35,41 per carat, while the second tender, in January, brought in $70 million at an average of $72,96 per carat.

Zimbabwe also plans to trade at the Shanghai diamond exchange centre to help it accurately gauge the worth of its gems, but Chidhakwa said he was unsure where the next tender will be held.

“We will inform the market as to where (the tender) will be held. The product footprint has remained consistent for most producers and we expect tom improve presentation at the next tender,” Chidhakwa said in a statement.

He noted that the Dubai tender was attended more by end-user customers, contributing to the higher price.

Chidhakwa said Zimbabwe intends to hold an auction I Harare before the end of the year.