Online Reporter
Nqobile Bhebhe
Zimpapers Business Hub
THE Zimbabwe Consolidated Diamond Company is stepping up efforts to add value to its natural diamonds in response to the growing dominance of lab-grown diamonds, which has triggered a significant global slump in diamond prices.
Synthetic diamonds, produced in temperature-controlled laboratories using intense pressure and extreme heat, can cost up to 85 percent less than natural stones, posing a major challenge to traditional diamond producers.
Worldwide, diamond prices have been falling sharply due to the slowdown in the luxury goods market and the surge in demand for lab-grown alternatives.
The downturn has far-reaching implications for jewellery manufacturers, mining companies and diamond-producing nations whose economies rely heavily on the gemstone trade.
ZCDC is thus ramping up its Deep Boiling Facility in Chiadzwa to enhance the value of its natural diamonds.
The deep boiling and acidisation process removes impurities and enhances the final lustre of gemstones, significantly improving their market value.
The plant is part of the company’s strategic development programme, which seeks to enhance the value of its precious stones before selling them to maximise revenue.
The initiative aligns with the Government’s thrust under the value addition and beneficiation drive, a key pillar of the country’s economic transformation agenda aimed at creating jobs, boosting revenues and diversifying the economy.
Diamonds are an integral part of Zimbabwe’s export earnings, while mining in general is a centrepiece of Zimbabwe’s economy, accounting for more than 75 percent of Zimbabwe’s exports and at least 12 percent of the gross domestic product and employing thousands across the country.
ZCDC public relations manager, Mr Tsungirai Dambuza, said the local industry had not been spared the global downturn in diamond prices; however, the company is focusing on beneficiation to cushion against market shocks.
“In terms of diamonds, I think it’s a worldwide thing. The diamond prices are depressed; they are declining due to the synthetic diamonds,” said Mr Dambuza in an interview with Zimpapers at the just-ended Mine Entra exhibition in Bulawayo.
“The rise of synthetic diamonds is affecting the natural diamond industry. We are not spared; we are natural diamond producers. You can see that even in Botswana, Lesotho, and Canada, some of the mines are closing.
“But we are trying to keep afloat with what is happening in the market. At ZCDC, we are advancing diamond value addition through our deep boiling process facility at Chiadzwa, where we are adding value to our products so that we fetch better prices on the market.”
The company’s renewed focus on value addition underscores Zimbabwe’s determination to ensure that its mineral wealth contributes meaningfully to national development despite shifting global market dynamics.
The country ranks as the 7th largest diamond producer in the world.
