LocalNews

ZCDC sells diamonds worth US$28.3 million

By Business Reporter

ZIMBABWE Consolidated Diamond Company (ZCDC) has sold 423,066.43 carat diamonds via the tender process, generating about US$28.3 million for the country

Addressing media on the resumption of diamond sales by ZCDC through the Minerals Marketing Corporation of Zimbabwe (MMCZ), Mines and Mining Development minister Winston Chitando was over the moon regarding success of the tender.

“The government is pleased to announce that the submitted bid value totalled US$28.3 million, and ZCDC and MMCZ are currently invoicing the successful bidders for payment. The bid average price was about $67 per carat,” said Chitando.

Mining sector is one of Zimbabwe’s economic pillars expected to contribute to economic recovery efforts, boost the country’s foreign currency reserves, estimated to be contributing at least 13 percent of Gross Domestic Product (GDP).

“The recent ZCDC Diamond Sales Tender 3 conducted from 28 August to 12 September 2018 has been concluded, where 423,066.43 carats were put on sale,” said Chitando.

The contribution of diamond to total mineral revenue increased from 5 percent in 2016, to 9 percent in 2017, with ZCDC contributing 80 percent of diamond output in 2017. The diamond sector is targeting to produce a combined output of 4.6 million carats in 2018.

The success of the recent diamond tender conducted is expected to create the necessary market confidence on the country’s diamonds and truly reflects His Excellency, The President’s mantra ‘Zimbabwe is open for business.’

Of the 122 diamond buyers invited to the ZCDC tender, 29 buyers participated in the tender process with 23 coming from the international while six were locals, representing a 24 percent attendance.

Buyers that participated at the ZCDC Tender 3 were drawn from United Arab Emirates, India, Israel, Belgium, Canada, Hong Kong, Namibia and South Africa.

ZCDC conducted its first diamond in February this year which raked in US$829 067.

Minister Chitando said the recently concluded sale comes after ZCDC had temporarily exited the market in February 2018 to allow for the development and implementation of an effective diamond value management framework and establishment of a robust marketing and sales strategy.

The new marketing and sales framework will see ZCDC conducting regular diamond sales tenders locally through MMCZ, creating contract selling arrangements for big parcels and ensuring market diversity by exploring lucrative selling opportunities in Antwerp, Dubai and Shanghai, among other key markets.

“ZCDC and MMCZ will conduct two additional tenders between October and December 2018 and will continue to enhance the marketing and sales framework to build market confidence and ensure sales volume and price sustainability,” said the minister. ENDS//

 

 

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