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Ray Bande in Victoria Falls
PROLIFERATION of synthentic diamonds is presenting a challenge on the global diamond trade market, a Cabinet Minister has said.
In an interview on the sidelines of the African Diamond Producers Association (ADPA) being held here in Victoria Falls, Mines and Mining Development Minister Cde Winston Chitando said proliferation of synthetic diamonds presents a challenge.
Minister Chitando said the issue was also discussed during this fifth ADPA conference. “The treat of synthetic diamonds. Diamonds are mined from the ground and there are diamonds manufactured in the laboratory. It is possible that diamonds made in the lab can be cheaper than those mined from the ground and telling the difference between diamonds mined to those made in the lab could be very difficult for some people.
“Therefore, this presents a challenge for the producers of real diamonds. In most cases the synthentic diamonds are prized cheaper than the real diamonds mining from the ground,” said Cde Chitando.
The Mines and Mining Development Minister said charing the ADPA has helped enhance the county’s image in the global diamomd trade industry.
ADPA is made up of 15 member states on the continent and observers.
Cde Chitando said: “This is mainly an administrative meeting meant to strengthen the operations on ADPA. The strategic planing and budgeting on initiatives to be undertaken formed the core what was being discussed here. We are basically trying to strengthen the effectiveness of ADPA.” The diamond trading bloc was formed in 2006, as a continental branch of the African Diamond Council.
It comprises 15 member states which include Angola, Botswana, Cameroon, the Central African Republic, the Democratic Republic of Congo, Ghana, Guinea, Namibia, Sierra Leone, South Africa, Tanzania, Togo and Zimbabwe.
Among other aims of ADPA is the transformation of conflict diamonds into diamonds of peace and sustainable development.
Cooperation between member countries in policies and strategies concerning prospecting, mining, production, cutting and polishing, as well as development of human resources and acquisition of technologies in the diamondiferous sector is also a priority area for ADPA.
On the domestic scene, the Mines and Mining Development Minister said the diamond sector is poised to contribute US$1 billion to the US$12 billion mining revenue that the country is on the cusp of attaining.
“The diamond sector is yet to contribute US$1 billion to the country’s US$12 billion mining revenue target,” he said.
Measures put in place to achieve the US$12 billion mining target include compelling gems and precious metal miners to pay half of their mining royalties to the Government through physical minerals as the country builds its mineral reserves.
Previously, the mining entities were paying a portion of their revenue in foreign currency, but mineral reserves serve as a source of trust in a country given that they carry no credit or counterparty risks.
Online Reporter