Wednesday, September 4, 2013

As rupee continues to slide, Zimbabwe to polish diamonds

The sliding rupee seems to have come as a blessing in disguise for Zimbabwe.

As the Indian diamantaires are finding it hard to buy rough diamonds due to a price hike in the past two months, the Minerals Marketing Corporation of Zimbabwe (MMTZ), a government-owned firm, is scouting for partners to set up diamond cutting and polishing centres in Zimbabwe.

After China, Zimbabwe is keen to set up diamond polishing units in their own country to derive maximum benefits through local beneficiation after the discovery of huge deposits of precious stones in the Marange area of Manicaland.


Industry analysts said that Zimbabwe has emerged as the new potential rough diamond producing country. This African country is the seventh largest producer of rough diamonds with produce around 25 per cent of the rough diamonds mined across the world.

The MMTZ recently announced to have engaged several firms from China, Hong Kong, Dubai and Israel that have expressed interest in expanding business interest in the country.

In a statement, MMTZ deputy general manager Richard Chingodza had said, "If all goes well, we will be working with some of the biggest cutting and polishing companies in the world so they can set up factories in Zimbabwe."

Presently, four diamond mining firms are operating in Zimbabwe's Marange diamond fields: Mbada Diamonds, Marange Resources, China-based Anjin and Diamond Mining Corporation.

Aniruddha Lidbide, diamond analyst told TOI, "There is no threat to the Indian diamond cutting and polishing centre as such from Zimbabwe, but the fact is that the country is the seventh largest rough diamond producer of the world. If other countries are helping Zimbabwe to set up diamond polishing units, then you can imagine the scale of local beneficiation."

Lidbide added, "India is the biggest consumer of Zimbabwean rough diamonds. It is the cheap compared to other mining countries. Still, a huge chunk of rough diamonds mined in Zimbabwe comes to Surat and Mumbai"

Dinesh Navadia, president, Surat Diamond Association (SDA) told TOI, "It is difficult to find skilled artisans around the world, which we have here in Surat. So, we are not worried on Zimbabwe's decision to set up polishing units. IF the world miners would have to do business with us, then they have to reduce the rough diamond prices"

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.