ZDTC students explain how diamond cutting is done (pic by Lloyd Gumbo)
Lloyd Gumbo Herald Reporter
ZIMBABWE loses at least US$14 billion in potential revenue every year when it exports diamonds in their raw form, parliamentarians heard yesterday.Zimbabwe Diamonds Technology Centre (ZDTC) chairperson, Mr Lovemore Kurotwi and Diamond Beneficiation Association of Zimbabwe chairperson, Mr Richard Mvududu made the remarks when members of the parliamentary portfolio committee on Mines and Energy toured ZDTC in Mt Hampden.
The portfolio committee chaired by Gutu Central legislator, Cde Lovemore Matuke (Zanu-PF) immediately made a commitment to push for beneficiation of the precious gems that would see the country benefit.
Mr Kurotwi said a research by Bain and Company found that the world diamond industry generated about US$71 billion every year in finished products while US$47 billion was realised from cut and polished diamonds.
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“In light of this, Zimbabwe being a major producer of diamonds known to have capacity of contributing up to 30 percent of the world’s production when in full operation, can earn itself approximately US$14 billion that is if we sell cut and polished stones,” he said.
“If we sell finished products in jewellery form we will earn approximately US$21 billion annually. These are the kind of funds which the country had forgone by not taking value addition seriously. We facilitated other nations to maximise at our expense.”
Some of the countries, he said, did not own even a single diamond mine but made billions of United States dollars from diamond beneficiation.
In December last year, Zimbabwe realised only US$10,5 million after 279 723 carats were auctioned in a trial tender held at Antwerp in Belgium.
ZDTC chairperson, Mr Lovemore Kurotwi show legislators some of their finished products (pic by Lloyd Gumbo)
Mr Mvududu said the economy would be turned around if right policies like adding value to diamonds were put in place.
“We need to take advantage of our position that of being a producer. Having the supply is one of the competitive advantages that one can ever get in the diamond industry because everybody then clamours for product.
“When you have the product you want, then take advantage of all the other aspects of the value chain, be it sorting, cleaning, cutting and polishing, jewellery, trading and retail.
“All these things are what make up economic growth in other countries. In our case, we are mining and we are one of the biggest producers, going to be number one within the not so distant future but we don’t have a viable diamond cutting and polishing industry,” said Mr Mvududu.
He said out of 29 diamond beneficiation firms that were registered in 2011, only one was left at the end of 2013 due to high license fees and one-year tenure.
These, he said, were prohibitive to would-be investors adding that most companies stopped operations because it was unsustainable.
Jewellery Council of Zimbabwe chairperson, Mr Fidelis Dana said value addition and beneficiation were the rock upon which economic revival hinged upon as outlined in the Zimbabwe Agenda for Sustainable Socio-Economic Transformation.
He said it was important for Government to walk the talk by making policies that would see the country adding value and beneficiating its precious gems.
MPs follow proceedings during their tour of ZDTC (pic by Lloyd Gumbo)
Cde Matuke said as a committee they would push for beneficiation and value addition of diamonds that would result in job creation and downstream benefits to locals.
“Coming from constituencies where there is high rate of unemployment; such initiatives will create employment and develop a lot of infrastructure for the country, it’s a positive development.
“As policy makers, we will work on the license fees so that they become affordable to people who want to venture into these projects because at the moment they are a bit prohibitive.
“We also need to give longer periods in terms of license tenure. One cannot invest for only 12 months, we need to give them four to five years tenure,” said Cde Matuke.
MDC-T representative for Nkayi South MP, Mr Abednico Bhebhe said it was important to purge all the loopholes that exist in the diamond sector.
He said there was need to improve accountability and transparency in the sector from mining to processing.
“Beneficiation is an excellent idea but for those guys to cut and polish, we have got to have the product first in abundance and sufficient for those who want to do the business.
“Before we get enough to bring for polishing, it’s good as we haven’t done anything,” he said.
Zanu-PF MP for Makoni South Cde Mandi Chimene said value addition was best for the country as outlined in Zim-Asset.