LocalNews

500 000 carats to be auctioned before end of 2019

By Business Reporter – Tuesday 24 September 2019

HARARE (Mining Index) – ZIMBABWE is expected to hold the last diamond sale FY2019 to auction 500 000 carats of diamonds.

Minerals Marketing Corporation of Zimbabwe (MMCZ) held the third diamond auction from September 9th to September 13th 2019 which traded 310 000 carats produced by state-owned Zimbabwe Consolidated Diamond Company (ZCDC).

This last auction to be held before end of the year is in line with efforts to clear the existing stock pile of half a million carats with an estimated value of US$3 million.

In June this year, MMCZ resumed diamond sales with seven international buyers invited to undertake valuations of 1.9 million carats of industrial, near gems and gems.

In July 2019, diamond output at ZCDC slumped to 37 052 carats from 175 768 carats obtained in June.

Zimbabwe Consolidated Diamond Company (ZCDC) projected an annual diamond output of 4.1 million carats FY2019 representing 50 percent growth from the 2018 production of 2.8 million carats valued at US$49 million from the 2018 diamond sales, surpassing its 2018 target of 2.4 million carats.

The third diamond auction held in September attracted 25 companies from the global market including Belgium, Dubai, India, Israel and South Africa.

ZCDC is estimated to be sitting on a 3.2-million carat stockpile, with a goal to grow annual output to 10 million carats by 2025.

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).

ZCDC conducted its first diamond in February 2018 which raked US$829 067 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.  ENDS//

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