adminA sharp decrease in diamond production from Marange fields in Manicaland Province in 2014 negatively impacted on global rough diamond output last year, an industry report released on Monday shows.
In volume terms, total global rough diamond production decreased by three percent to an estimated 142 million carats in 2014. The Marange diamond fields were ranked the world’s largest source of diamonds in 2013 in terms of total carats produced.
The fields were estimated to have produced almost 17 million carats or 13 percent of global supply in 2012, but production has been decreasing drastically due to the depletion of alluvial reserves, leaving more difficult-to-mine conglomerate stones.
And in 2015, Zimbabwe’s diamond production is expected to fall to 3,5 million carats from 5,9 million carats mined last year.
De Beers, one of the world’s largest diamond producers, in its Diamond Insight Report 2015 said the Marange operations had registered a drop in production of more than 50 percent in 2014.
“A notable trend in global rough diamond production in 2014 was the decline in carats recovered from the Marange operations in Zimbabwe,” the report said.
The report said although three new mines began production last year, with a further mine being commissioned earlier this year, in overall terms, these did not contribute significantly to global production.
“Also, the project pipeline remains sparse, with only two large-scale projects currently in development — both of which are expected to begin production in 2016.
“The result of these new mines coming online will be a moderate increase in diamond supply in the next few years.”
But, despite the decrease in production volumes, in value terms rough diamond production in 2014 was more than $19 billion, representing an increase of almost six percent over 2013.
The largest producing countries by volume in 2014 were Russia with 27 percent, the Democratic Republic of Congo with 19 percent, Botswana with 17 percent, Canada with nine percent and Australia with seven percent.
Russia was also the largest producing country by value with 26 percent of the total value produced in 2014, the same share as in 2013.
Botswana was the second-largest producer in value terms with a 23 percent share, followed by Canada with 12 percent, Angola with nine percent and South Africa with seven percent.
To better manage the diamond industry in Zimbabwe, the Government is in the process of merging the more than five companies mining the gems into one corporation.
This, it is believed, will improve production efficiencies and curtail leakages rocking the industry which are disadvantaging the economy.
The Government will have a 50 percent shareholding in the consolidated entity while the other private companies divide the remainder among themselves. — New Ziana.
Online Reporter