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Minister Chinamasa

The Government plans to increase production of diamonds in Chiadzwa, Marange in Manicaland province, following disruptions during the consolidation of mining operations in the area, a process which is now drawing to a close, a Cabinet Minister has said. Zimbabwe, which extracts most of its gems from the vast Chiadzwa diamond fields, started consolidating mining operations into one company early this year.

The process, which created the Zimbabwe Consolidated Diamond Company (ZCDC), will see the Government become the major shareholder with 50 percent, while private firms in existing ventures share the remaining 50 percent.

Finance and Economic Development Minister Patrick Chinamasa said at current production rates, the country was not likely to meet the full year target of six million carats. Minister Chinamasa said production had been affected by various factors, chiefly the consolidation process which had been met with resistance by some companies.

“I know that production is very low in one area and that is diamonds and it is a matter that Minister Chidhakwa (Mines and Mining Development) and I are going to work very hard to make sure that we produce to meet the targets that we set ourselves,” he said.

“We have set ourselves a target of six million carats this year but we are nowhere near that but mostly because of the disruptions that came about as a result of the re-organisation of that sector. “Clearly there was disruption, resistance in some quarters that has delayed the finalisation of that exercise.”

He added; “I think the next responsibility that Minister Chidhakwa and I have is to see that this sector also performs, and the expectations by the way are higher in the diamond sector.” According to official statistics, rough diamond output dropped to 152 475 carats in the first quarter of this year from 639 377 carats in the same period the year before.

The Government was targeting to sell around 500 000 carats per month, bringing in around $30 million per month into its coffers. — New Ziana