Zimbabwe’s annual diamond exports declined by 33.71 percent to 5.9 million carats last year from 8.9 million in 2013 due to exhaustion of alluvial diamonds, figures from the Mineral Marketing Corporation Zimbabwe (MMCZ) show.


The decline in diamond exports coupled with weak metal prices experienced last year undermined earnings for most miners, resulting in lower fiscal revenues and further deterioration of the country’s balance of payments position.
Falling diamond exports also come at a time when government has announced plans to merge all the six diamond mining operations in Chiadzwa into one firm in which the state will have a 50 percent shareholding.
Finance Minister Patrick Chinamasa recently said government was no longer receiving any revenue from companies mining diamonds in Chiadzwa as the fields, in the eastern part of the country, had run out of alluvial diamonds.
“The truth of the matter is that there are no more alluvial diamonds and the companies there, except for only one, did not set aside funds to explore and extract the kimberlitic diamonds that are now found there,” Chinamasa said.
Mines Minister Walter Chidhakwa said while some mining companies have run out of alluvial diamond deposits, Zimbabwe still has viable reserves of the precious stones.
Zimbabwe’s mining sector is estimated to have declined by -2.1 percent last year due to a decline in diamond exports, frequent power outages, obsolete equipment, inadequate funding for recapitalization and falling metal prices. Enditem

Source: Xinhua


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