eBusiness Weekly
Ishemunyoro Chingwere Business Reporter
The Minerals Marketing Corporation of Zimbabwe (MMCZ), will next week conduct a diamond auction for local buyers in fulfilment of Government’s directive that 10 percent of Zimbabwe Consolidated Diamond Company’s (ZCDC) gems should be sold to local cutters.
The State diamond mining entity is currently seating on about 1,5 million carats after it took a deliberate policy to temporarily exit the market after realising the gems were being undervalued due to inefficiencies and bottlenecks in the downstream Diamond Value Management processes.
While waiting for the best opportune moment to return to the market, which was initially slated for the fourth quarter of the year before metal prices softened internationally thus dissuading producers from offloading stock, the mining entity has moved in to unload produce meant for locals.
ZCDC has availed a parcel of 24 000 carats for the local auction and viewing is on today at MMCZ and will continue on Monday before the auction proper on Tuesday 19 December.
MMCZ acting general manager Masimba Chandavengerwa, confirmed the auction.
“Yes, we will have an auction next week,” said Mr Chandavengerwa.
“It’s in fulfilment of a provision of the law where 10 percent of ZCDC’s produce should be set aside for local dealers who are into beneficiation.”
ZCDC chief executive officer Moris Mpofu, also confirmed the auction that he said will encourage locals to participate in the diamond industry.
“ZCDC is holding a local auction next week and viewing of the product is currently underway at MMCZ,” said Dr Mpofu.
“(ZCDC) will sell more than 24 000 carats to local cutting and polishing companies to kick start the capacitation of the local cutting and polishing industry,” he said.
He added that expectation is that at least eight companies will be bidding for the stones.
With just 24 000 carats up for grabs next week, more local auctions will follow in future so as to afford locals their 10 percent share of total produce which is currently around 1, 5 million carats.
While the relevant authorities would not be drawn into discussing possible dates for the big money international sale, this publication has it on good authority that it is now expected in the first quarter of 2018 as it is usually preceded by the local auction.
Government is eager to boost earnings from the mining sector, which last year accounted for about $2 billion leading to a target of $3 billion this year that, however, now looks very unlikely to be achieved.
Presenting the 2018 national budget, Finance and Economic Planning Minister Patrick Chinamasa proposed to scrap the 51 /49 percent indigenisation law in much of the extractive sector including gold as a way of attracting new capital.
However, diamonds and platinum are still protected by the indigenisation law and new ventures will erquire majority Zimbabwean ownership.
