The Sunday News
Dumisani Nsingo, Senior Business Reporter
THE outbreak of the novel coronavirus has forced Zimbabwe Consolidated Diamond Company (ZCDC) to review its diamond auction sales dates, in the process delaying its debut international gem marketing drive.
ZCDC acting chief executive officer Mr Roberto de Pretto said the company would review its diamond sales plans this year taking into cognisance efforts being made to contain the Covid-19 pandemic globally. The company had projected to have six international sales as part of its debut on the international market. It had also planned to have the same number of sales locally.
“Our initial plans were to have six international and six local tenders during the year. This has, however, been affected by the coronavirus issue. We will review the sales plan as global market development unfold around the Covid-19 situation,” said Mr De Pretto.
He further noted that plans were also in place to host at least an additional four tenders at diamond bourses such as Dubai and Surat in India. Mr De Pretto said he was optimistic the situation would return to normal soon, further hinting that the company would consider starting with local sales as it watches events on the international market unfold.
“We hope that the coronavirus issue is a phase, which will be contained and come to pass. In this regard we are very optimistic that we will be in the market soon. We understand that China has already gone back into business at full throttle. Obviously, we will start locally as we test the waters in different countries. We are hopeful that the containment efforts by Government and other stakeholders will be successful and the disease gets contained,” he said.
Mr De Pretto said the Covid-19 outbreak has had a negative impact on the company’s production.
“Operations have been running on essential services, thereby straining production targets – supply of spares has been cut as most of our spares and consumables come mainly from South Africa. These days even local suppliers have been closed and rarely opening on a case by case basis . . ,” he said.
“The full impact of the loss is both in carats production and waste stripping for future ore supply to plants is being assessed albeit ZCDC’s quick response to the situation has reduced the potential impact. The impact also extends to loss of revenue owing to closed diamond markets and other Covid-19 induced market disruptions.”
Production for 2019 declined to 1,6 million carats from 2,8 million produced in 2018 and this year the company had projected to produce 3,2 million carats.
“This year we had targeted to produce 3,2 million carats of diamonds. The target still stands, we will review the full impact as soon as the lockdown is over, and we are able to get spares and consumables – At that stage we will review possible quick wins. There are no revised targets, we need to review the full impact including subsequent consequences,” said Mr De Pretto.
At the peak of production in 2012, the southern African country’s output was 12 million carats. Zimbabwe’s diamond industry is centred on the Marange fields in Chiadzwa, Manicaland Province.
