ZCDC eyes 43pc jump in diamond production

Oliver Kazunga

Senior Business Reporter

THE Zimbabwe Consolidated Diamond Company (ZCDC) is targeting a 42,5 percent jump in diamond output to 5,7 million carats this year on the back of various initiatives to drive production.

Among the planned strategies to increase output is the improvement of operational efficiency and exploration.

Last year, the company produced over 4 million carats.

ZCDC, a private limited company wholly owned by Defold Mine (Pvt) Ltd and has operations in Chiadzwa and Chimanimani, Manicaland province, began operations in March 2016. This was after the Government consolidated all the diamond mining concessions in Chiadzwa.

Apart from increasing production, ZCDC chairperson Mr Munashe Shava said, his organisation was conducting extensive exploration and evaluation across the country in search of kimberlite pipes that can be mined economically.

Mining is strategically important to Zimbabwe given that it generates the bulk of the country’s export earnings, largely driven by gold and platinum. Other key minerals, apart from diamond, include nickel, chrome, coal and lithium.

“Commodity prices are currently depressed on the global market and as ZCDC, we have come up with various initiatives to offset this worrisome development.

“We have ramped up production and this year, we have set a target of 5,7 million carats and we see this target nearly doubling to 10 million carats in the coming year,” he said.

Mr Shava, however, did not provide further details on how the firm would achieve its target of 10 million carats over the next 12 months.

“Apart from ramping up production, we also adopted cost-cutting measures while, at the same time, optimising operations,” he said.

According to the Kimberley Process Certification Scheme, the world’s diamond industry watchdog, Zimbabwe last year maintained its seventh position in the world production of rough diamonds, after producing 4,9 million carats valued at US$303 million.

The world’s top rough diamond producers are Russia, which produced 37,3 million carats; Botswana (25,1 million carats); Canada (16 million carats); Namibia (2,4 million carats); Lesotho (2,5 million carats) and Sierra Leone (0,5 million carats).

Global rough output fell by 20 percent year-on-year to US$12,72 billion while, by volume, production slipped by 8 percent to 111,5 million carats.

Total imports dropped by 10 percent by volume, while global exports were down by 9 percent.

The decline in exports reflected a 12 percent slump in the number of carats exported from Russia, a 24 percent drop from Botswana and a 45 percent decrease from South Africa.

Analysts say the natural diamond market has struggled in the past two years due to rising consumer demand for cheaper lab-grown diamonds and global economic volatility.

Zimbabwe’s output has been on the rise due to the Government’s implementation of several policies and regulations to support the diamond sub-sector.

The key policy initiatives include investing in new technologies and innovations to promote the exploration and extraction of the gemstones, as well as fostering value addition
and beneficiation in the diamond industry.

Officially opening the 9th ordinary meeting of the African Diamond Producers’ Association Council of Ministers in Victoria Falls in March this year, President Mnangagwa urged Africa to walk the talk on its vision to grow value addition and beneficiation.

Diamonds offer a perfect opportunity in mining for the continent to increase returns from the sector through value addition and beneficiation.

The continent contributes more than 60 percent of the global natural rough diamonds.

“Let us all take charge of the future of the sector, more so given the numerous benefits natural diamonds bring to our communities and economies.

“It is only through cutting and polishing of diamonds, which is the most complex stage of diamond production, that, as Africa, we will be able to unlock more value, get access to new technologies, as well as capacitation of local staff in the trade.

“This should be complemented by the opening of new mines, benefiting from ongoing exploration projects, expansion of existing projects and increased capacity utilisation,” he said.