Zimbabwe to influence price and demand of rough diamonds

Zimbabwe to influence price and demand of rough diamonds
Published: 04 February 2012 (9213 Views)
Backed by high demand from the world's biggest diamond cutting and polishing centre in Surat, Zimbabwe is set to influence price and demand for rough diamonds in 2012. The market is currently ruled by the giant mining companies like De Beers, Alrosa and Rio Tinto.

Having received export approval from the Kimberley Process (KP) in November-2011, about 11 million carats of Marange goods from Zimbabwe are expected to enter the market in 2012, especially in India where the stones are largely manufactured in Surat.

Industry experts said Zimbabwe diamonds are expected to flow in the market in huge volumes throughout the year. This would further put an end to the price wars and the supply shortage experienced by Surat diamantaires post-recession.

Sources close to Marange operations in Zimbabwe told TOI that four mining firms operate in Marange, namely Diamond Mining Company (DMC), Chinese company Anjin, Mbada and Marange Resources. These four concessions are expected to reach about 20 million carats this year, up from about 9 million carats in 2011.

"Zimbabwe is set to rule the global rough diamond supply market in the next few years. Right now, the country is offering its average goods at $40 per carat, which is very cheap compared to other mining countries, whose diamonds are sold above $100 per carat. Already, Indian cutters are aware that the Marange goods offer them best margins in the market," a diamond analyst Anirudh Lidbide said.

According to the official statistics from Kimberley Process Certification Scheme (KPCS), the global diamond production fell by about four per cent to approximately 122 million carats in 2011 and the value of production rose to around 25 per cent to an estimated $14 billion. The rough diamond production remains significantly below the peaks of 2005 and 2006 when some 176 million carats of rough stones - Zimbabwe's production was not counted as the country was banned under KP.

For the first time after the KP's approval, diamonds from Zimbabwe's controversial Marange area are being tendered in the capital Harare this week. The DMC is holding a tender offering an estimated 4 lakh carats of rough stones and the Chinese owned mine Anjin is tendering some 5 lakh carats. The tendering process is most likely to be participated by the rough dealers and merchants from India and Israel.

Also, two other diamond mining firms - Mbada and Marange Resources - are auctioning about 7 lakh carats of rough stones in the next few days. However, a total of 1.6 million carats of rough stones will enter into the global supply chain.

"An excess supply of raw material in the market is set to increase the employment opportunities for the diamond workers here. Moreover, the rough inventories is likely to rise and that it will soften the prices, which was a double digit increase in 2011," chairman, Sanghavi Export, Chandrakant Sanghavi said.

- timesofindia

Tags: Diamonds,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Rebecca Malope retires

by Mandla Ndlovu | 20 August 2019 | 49 Views

The Crocodile in Crisis

by The Times | 20 August 2019 | 63 Views

'Zimbabwe to issue cash notes soon'

by Bloomberg | 20 August 2019 | 122 Views

Zimbabwe youths rally behind Chief Ndiweni

by Mandla Ndlovu | 20 August 2019 | 85 Views

Zimbabwean woman forced to give birth standing up in South Africa

by Staff reporter | 20 August 2019 | 105 Views

Open letter to Jacob Mudenda: What was your role during Gukurahundi?

by Nicholas Ncube | 20 August 2019 | 70 Views

Moral authority is a pre-requisite for Good Governance

by Big Monday with Tinashe Eric Muzamhindo writes: | 20 August 2019 | 49 Views

Zimdiaspora in final push

by Thabo Makuyana | 20 August 2019 | 61 Views

WATCH: Soldiers in Gweru march on behalf of Chamisa's MDC

by Staff reporter | 20 August 2019 | 114 Views

August 16 exposes the MDC's insincerity

by Nobleman Runyanga | 20 August 2019 | 59 Views

Mnangagwa 'love rival' dies

by Staff Reporter | 20 August 2019 | 87 Views

State effects a de facto ban on civilian politics

by Luke Tamborinyoka | 20 August 2019 | 57 Views

Chitembwe signs Harare City deal

by Staff reporter | 20 August 2019 | 56 Views

Zanu-PF congratulates Mnangagwa

by Staff reporter | 20 August 2019 | 57 Views

Govt hires 19 doctors

by Staff reporter | 20 August 2019 | 58 Views

Duo in trouble for assaulting ex-mayor

by Staff reporter | 20 August 2019 | 50 Views

Kambarami and Chigora found not guilty

by Staff reporter | 20 August 2019 | 54 Views

BREAKING: Bomb scare in Bulawayo

by Staff reporter | 20 August 2019 | 53 Views

Match fixing scandal rocks Zifa Southern Region

by Staff reporter | 20 August 2019 | 47 Views

Chunga not qualified to coach TelOne side

by Staff reporter | 20 August 2019 | 56 Views

Zanu-PF hails Sadc

by Staff reporter | 20 August 2019 | 50 Views

Teen gangster pleads guilty

by Staff reporter | 20 August 2019 | 45 Views

No pay, no invigilation: Zimsec told

by Staff reporter | 20 August 2019 | 45 Views

Chamisa raises ante against Mnangagwa

by Staff reporter | 20 August 2019 | 47 Views

Police ban MDC Gweru demonstrations

by Mandla Ndlovu | 20 August 2019 | 37 Views

Zanu-PF vows resistance against MDC 'regime change' plot

by newzimbabwe | 20 August 2019 | 33 Views

MDC's campaign for Chief Ndiweni release worrisome

by Editorial - Newsday | 20 August 2019 | 41 Views

Rural teachers chicken out

by Staff reporter | 20 August 2019 | 26 Views

Protests a form of feedback

by Zanda Shumba | 20 August 2019 | 25 Views

Zanu-PF member attacked in intra-party violence

by Staff reporter | 20 August 2019 | 27 Views

Police ban anti-government protests in Gweru

by ZimLive | 20 August 2019 | 28 Views

Zanu-PF's economic policy record 'poor': US think tank

by Staff reporter | 20 August 2019 | 25 Views

Austerity measures: Is Zimbabwe drinking poisoned chalice?

by Cliff Chiduku | 20 August 2019 | 50 Views

Claim freedom granted by Constitution in peace

by Fr Oskar Wermter SJ | 20 August 2019 | 40 Views

Zanu-PF Manicaland accuses MDC of cheap politicking

by Staff reporter | 20 August 2019 | 26 Views

Mnangagwa 'victim' dies

by Staff reporter | 20 August 2019 | 25 Views