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ZIMBABWE has risen to become a very significant player in the global diamond industry following the discovery of the resource in Chiadzwa a few years ago. Not only has the country moved swiftly to formalise the industry but it has maintained sanity in the exploitation of the precious gems culminating in the attainment of the Kimberly Process Certification, a key recognition of best practices of production and trading system of diamonds in line with international standards.
The gains have been consolidated by the crafting of the Diamond Policy Document aimed at enhancing increased contribution of the industry to national development through value addition and beneficiation.
With the recent establishment of a local diamond auction floor in Harare, President Mugabe has courageously urged increased speed in the adoption of modern technologies towards boosting extraction and setting up of diamond beneficiation centres to maximise profits.
Undertaking new exploration projects to discover new mines and ramping up production to full capacity would enable the country to derive maximum benefit from the precious stones, said the President while officially opening the second edition of the Zimbabwe Diamond Conference in the capital on Thursday.
“Our country has become one of the leading international diamond producers in the world. Diamonds should play a pivotal role in the economic development of our nation.
“But, so far, despite this huge mineral endowment, exploitation of the country’s minerals in general, upstream, side stream and downstream, has been limited by factors that include power shortages, technology gap and uneven marketing conditions,” said President Mugabe.
He outlined strategies the country should employ to realise full benefit from its diamonds, which we feel deserve to be taken seriously.
The President identified increased investment in appropriate modern technologies, undertaking new exploration to discover new mines, exploration on existing mines to extend their lifespan, increasing production capacity and expanding operating mines, as critical ingredients of making a breakthrough.
We support the President’s emphasis on the need for the mining sector to add value to the country’s minerals through beneficiation. By pursuing beneficiation, Zimbabwe is following in the footsteps of other diamond producing countries that have adopted the practice with execellent results. Botswana’s economy is anchored on the diamond industry and one of the most successful elements has been its policy of diamond beneficiation. The diamond cutting and polishing industry has created 3,200 industrial jobs in Botswana and is now the largest manufacturing sub-sector in the country.
In his address at the diamond conference, Cde Mugabe said there were vast opportunities for value addition and beneficiation in the diamond industry value chain that local entrepreneurs should exploit and this we feel he has thrown the gauntlet at Zimbabwean entrepreneurs to seize the opportunities that come with beneficiation.
“Value addition begins at sorting level, going up the value chain to jewellery manufacturing. Local beneficiation and value addition of mineral commodities enhances value, resulting in more revenue for the communities, investors and the government, and in accruing additional benefits such as employment and infrastructure development,” he said.
We agree and are aware of the immense potential for downstream industries arising from beneficiation.
In Botswana for instance, the Diamond Trading Company Botswana (DTC Botswana) is a 50/50 Joint Venture partnership between the government and De Beers Group. It is the world’s largest and most sophisticated rough diamond sorting and valuing operation. Currently, DTC Botswana sells and markets rough diamonds to 21 cutting and polishing companies that have been licensed by the government of Botswana to carry out cutting and polishing activities locally. DTC Botswana aims to facilitate, drive and support the creation of a vibrant, sustainable and profitable downstream diamond industry in Botswana that will deliver additional value for Botswana’s diamonds. With further development of the Botswana downstream diamond industry, it is estimated that there will be a good number of jobs created for Batswana in the coming years. Zimbabwe can learn from its neighbour and leverage on its sound diamond policy to derive maximum benefit from its diamonds.
Zimbabwe’s Diamond Policy reserves a minimum of 10 percent quota of all rough diamond exports for local cutting and polishing and this is an execellent starting point. It is also encouraging that the government has already started work on infrastructure development of the site in Harare for the housing of the diamond industry.
The centre will house cutting and polishing companies, a diamond exchange, and related diamond industry service providers.
The government has since rationalised the diamond cutting and polishing licensing system, benefiting both the government and the private companies, from the revenue of the business.
An amendment to the Precious Stones Act is also underway to ensure it captures recommendations of the Diamond Policy.
The Ministry of Mines and Mining Development is working on implementing a computerised mining cadastre meant to effectively manage the country’s mining title system.
The new approach will improve the ministry’s efficiency and reliability in the processing of applications for mining title and guarantee short lead times to tasks and ensure that investors can quickly get down to serious business without delay.
Online Reporter