Monday, November 7, 2011
Surat to be biggest centre processing Zimbabwe roughs
The world's biggest diamond cutting and polishing centre in Surat will also become the biggest centre processing the rough diamonds from Zimbabwe in the next few years. This is because Zimbabwe's Marange diamond field has the annual capacity to produce about $4 billion worth of rough diamonds.
EG Cross, a member from Bulawayo south constituency of Zimbabwe, recently in a detailed presentation to the Zimbabwe House of Assembly stated that mining companies - Mbada Diamonds, Anjin and Marange Resources - have been collectively producing rough diamonds worth $4 billion from Marange diamond field per annum.
Until now, diamantaires in Surat were going by the official production statistic of Zimbabwe government about Marange diamond field which was estimated to be worth $2 billion per annum. The presentation by the member of Zimbabwe parliament has made the diamantaires in Surat happy.
Cross stated that the Marange diamond field produced 15 per cent good quality gem stones and 85 per cent industrial diamonds. The average price achieved on gem stones was $350 per carat in 2010, while industrial diamonds realised between $31 and $3 per carat.
Industry experts said the statement of the member of Zimbabwe House of Assembly has heated up the market in the diamond city. Surat is the biggest consumer of Zimbabwe diamonds and about 90 per cent of the $4 billion worth of rough diamonds would arrive in Surat every year.
"Till now, we were under the impression that Marange diamond field has an annual production capacity of $2 billion worth of rough diamonds. The recent statement by a senior member of Zimbabwe parliament has revealed the actual production figure of Marange, which is quite huge," said Ashit Mehta, chairman, Surat Rough Diamond Sourcing India Limited (SRDSIL).
The annual demand of rough diamonds in the industry is estimated between $10 and $11 billion per annum. As per the Gems and Jewellery Export Promotion Council (GJEPC) statistics, India imported $11 billion worth of rough diamonds in 2010-11.
"This year, the total import of rough diamonds is likely to increase following Kimberley Process Certification Scheme's export clearance to Zimbabwe," said Mehta.