Zimbabwe Reports Lower Diamond Exports for 2014

Rapaport reported that Zimbabwe’s diamond exports sank to 5.9 million carats in 2014, down fairly substantially from the 8.9 million carats it exported in 2013. The decline came on the back of the exhaustion of alluvial diamonds in Marange.

As quoted in the market news:

The decline comes at a time the government is planning to bring all diamond-mining operations in the country under one firm in which the state will have a 50 percent stake.

The consolidation plan was tabled before Parliament last week by Mines Minister Walter Chidhakwa, who said the government was being prejudiced of revenue by diamond miners and he wanted to ensure consolidation of all diamond mining companies to stem leakages.

The consolidation will not only involve companies mining in Marange as initially planned; Murowa Diamonds and any other diamond mining operations across the country will be involved in the unprecedented integration of gem companies. It was not clear how companies that have been managing their businesses well will be rewarded in the proposed integration, which will include some mining ventures that have even evaded both Treasury and tax scrutiny over the years.

Chidhakwa commented:

At some point we started by saying we will first merge Gye Nyame and Kusena concession into Marange. But we have realized that it is actually better just to bring everybody together in the first instance.

Click here to read the full Rapaport report.