Ukraine war frustrates Zimbabwe diamond sales
ZIMBABWE’S diamond sector contributions decreased by 35 percent to US$147 million
last year compared to US$227,5 million in 2021 largely due to geopolitical tensions
between Russia and Ukraine amid limited domestic marketing of the gem.
Mines and Mining Development permanent secretary, Mr Pfungwa Kunaka, told
stakeholders during a recent meeting in Bulawayo that the country was not marketing
and selling the precious gem for the better part of last year.
He said the Government was now reworking its marketing strategy, which proved to be
appealing after resuming marketing in the last few months of the year.
Diamond – Image taken from Shutterstock
“For the better part of 2022, we did not market or sell diamonds but towards the end of
the year we managed to open up and the value in terms of what we marketed improved,”
said Mr Kunaka.
“A total of US$147 million was realised from diamonds in 2022 compared to US$227,5
million in 2021.
This represents a decrease of 35 percent due to geopolitical tensions between Russia and
the West and Covid-19 induced restrictions in China, rising inflation, interest rates, and
the volatile stock market, the trading of diamonds was affected.”
In 2019, Zimbabwe set out on an ambitious drive to more than quadruple mining sector
revenue by hauling minerals worth US$12 billion by 2023. However, Mr Kunaka said the
overall performance of the mining sector last year attained US$5,4 billion.
Turning to key diamond projects, and this year, Mr Kunaka said the Zimbabwe
Consolidated Diamond Company (ZCDC) commissioned a 450 tons per hour metallurgical
process plant.
He said ZCDC has since ramped up production, which saw them surpass their 2021 target
of two million carats.
“ZCDC is projected to produce 4,6 million carats of diamonds per annum in 2023, which
translates to US$396 million,” said Mr Kunaka.
One of the diamond companies, Alrosa Zimbabwe is already undertaking exploration in
Malipati area near Beitbridge in Matabeleland South and it commissioned a diamond
washing plant with a capacity of one tonne per hour of ore.
“RioZim Murowa diamonds greenfields diamond plant construction is now complete.
The expansion will see Murowa processing 500 000 tonnes per month from 190 000
tonnes per month,” said the permanent secretary. “RioZim Murowa diamonds is
projected to produce 562, 966 carats of diamonds per annum.”
Zimbabwe is the vice chair of the Kimberly Process Certification Scheme (KPCS) — a
global body of diamond-producing nations, which has 52 participants, representing 82
countries with the European Union and its member states counting as a single
participant.
Apart from being vice chair of KP, a global body that sets out the requirements for
controlling rough diamond production and trade, Zimbabwe is also vice chair of the
Africa Diamond Producers’ Association (ADPA).
In both bodies, Zimbabwe will assume full chairmanship this year in a remarkable feat
for a country that over a decade ago was facing challenges in the export of its diamonds.-The Chronicle
