Diamond firms failing to sell gems

The companies failed to register after Government increased fees by over 400 percent to US$100 000 annually.

The increase in fees followed revelations that some diamond processors were engaging in illegal selling of raw diamonds.

Following the increase in fees, the Diamond Beneficiation Association of Zimbabwe (DBAZ) said only six companies had managed to register this year compared to 29 in 2011.

DBAZ treasurer Mr Shingai Ndoro told New Ziana some de-registered companies were stuck with the gems and were in talks with the Minerals Marketing Corporation of Zimbabwe (MMCZ) to dispose of their holdings.

The MMCZ, a Government agent, is responsible for the marketing of diamonds and other minerals.

The companies failed to process the diamonds before expiry of their licences in December last year.

The failure, sources in the industry said, followed suspension of operations in the sector by Government mid last year after revelations that some polishers were trading in unprocessed stones.

Mr Ndoro, however, said the companies would still be allowed to process the diamonds and pass them on to the MMCZ.

Meanwhile, Mr Ndoro said the industry was making headway in negotiations with the Government over the fee hikes.

The processors argue that the high fees were threatening the viability of players in the industry.

The players argue that the fees are too high when compared with other countries in the region where they pay 100 Pula per year.

Mr Ndoro said Government was supportive of the industry.

Zimbabwe’s diamond cutting and polishing industry is still in its infancy after the discovery of diamonds in the country a few years ago.—New Ziana.