New Zimbabwe Diamond Mining Firm Aiming for Annual Output of 1M Carats

Mining and Exploration
05/05/2016 09:15

The newly created Zimbabwe Consolidated Diamond Company (ZCDC) has sold 270,000 carats of stones since its formation in February, according to a report out of the country. The company was established after the government cancelled the licenses of miners operating in the Marange diamond areas as the government sought tighter control of the diamond trade and revenues. Mines and Mining Development minister Walter Chidhakwa said ZCDC's performance had shown that government made the right decision to consolidate the mines.

"We used to do 15 million carats (a year)…" Chidhakwa was quoted saying. "We also did 12 million carats annually, which was one million carats per month. Now if we go back to one million carats per month, you find a price of $70 to $80 per carat, which is $70 to $80 million per month. We multiply this by 10 months and get $700 million plus the extra two months, we get an average of $800 million."

The government has set a target of one million carats of diamonds per month for the new entity. Chidhakwa said the firms mining in Marange paid the government just $600 million over a period of seven years. The Marange miners at their peak produced 15 million carats of alluvial diamonds per annum.