The Sunday News
THE Government has come up with a policy that will ensure that at least 10 percent of all diamonds produced in Zimbabwe will be cut and polished locally as part of promoting beneficiation and creating employment in line with the Zim Asset.
Value addition and beneficiation is one of the clusters identified in the economic blueprint to spearhead economic revival to 2018.
Permanent Secretary in the Ministry of Industry and Commerce, Mrs Abagail Shonhiwa, said this would boost employment locally and increase value to the minerals.
“The policy will ensure that at least 10 percent of our diamonds are cut and polished locally,” she said.
However, she said the country was still facing a shortage of properly skilled diamond cutters hence the need to invest in training of the right personnel.
“There is a need for proper training of the cutters.”
The country is already constructing a diamond centre in Mt Hampden near Harare which will, among other functions, focus on cutting and polishing of diamonds.
It will also act as a training centre for various people who work in the downstream diamond industries.
Zimbabwe has been selling most of its minerals raw form resulting in massive leakages.
According to a report this year by Partnership Africa Canada, Zimbabwe lost more than $770 million between 2008 and 2012 through under-valuation and transfer pricing of diamonds.
The report noted that Zimbabwe exported raw diamonds to mostly the United Arab Emirates especially Dubai which then exported them at a much higher price pocketing huge amounts for simply being middlemen.
Also, countries that are cutting and polishing local diamonds are gaining an excess of 200 percent profits from the industry, money that Zimbabwe could get if it started beneficiating the mineral.
But it is through value addition as espoused in Zim Asset that such leakages could be plugged by ensuring that Zimbabwe becomes a major diamond processing centre.
According to the blueprint value addition and beneficiation strategy is set to be anchored on the private sector taking a key role in the funding and execution of the activities while Government provides the necessary support in terms of alignment, consistency and cohesion of policies that include among others, the Industrial Development Policy, National Trade Policy and Minerals Development Policy.
Apart from Government taking a leading role in beneficiating diamonds, mining companies have also started a leading role in beneficiating diamonds.
The Chamber of Mines announced that Murowa Diamonds had already started beneficiating its diamonds to the acid stage.
Responding to written inquiries, Murowa Diamond managing director, Mr Zebra Kasete, said his company was supportive of diamond beneficiation.
He, however, could not elaborate on what the acid stage that was alluded to by the Chamber of Mines meant in terms of percentage.
“We at Murowa are in full support of beneficiation and value addition of minerals. Beneficiation is important to the sustainable economic development of Zimbabwe and Africa.
“Murowa Diamonds meets international standards in the beneficiation of diamonds as confirmed by the Minerals Marketing Corporation of Zimbabwe and Ministry of Mines and Mining Development,” said Mr Kasete.
He, however, said cutting and polishing of diamonds was a specialised and sophisticated downstream industry that required robust policy formulation and the right incentives for investors.
