ZCDC to sell diamonds next month
ZIMBABWE is finalising the sale of at least 1,2 million carats of diamond stockpiles under conditions of enhanced transparency and aggressive marketing to ensure increased revenue from the precious stones.
The Zimbabwe Consolidated Diamond Company (ZCDC) targets offloading the gems to foreign buyers next month following adoption of a tripartite framework that also involves the Reserve Bank of Zimbabwe (RBZ) and Minerals Marketing Corporation of Zimbabwe (MMCZ).
ZCDC targets to fetch a maximum US$100 per carat, compared to previous prices of just over US$50 per carat.
The latest move to sell the stones come amid revelations that First Element, which was previously tasked to market the stones, is understood to have been jettisoned.
ZCDC has also enhanced the cleaning of diamonds to improve the quality of stones.
Under the new marketing framework, Zimbabwe will engage expert Government Diamond Evaluators from other diamond producing countries to assist in valuation of the stones.
Plans are also afoot to establish a sorting house in a bid to enhance value management.
Responding to questions from The Sunday Mail last week, ZCDC chief executive Dr Morris Mpofu said the company had stocked the gems since the beginning of the year and it now anticipated a sale.
“ZCDC has accumulated diamond stock amounting to 1,2 million carats as at 31 August 2017,” he said
“We are targeting to sell the diamond stock during the last quarter of this year.
“We are open to explore all markets worldwide to find our lucrative footprint.
“This will be the first time we are going into the market with a huge amount of diamonds, therefore we need to ensure that we get maximum value from the sale.”
Dr Mpofu said authorities would refrain from “a desperate sale” without due diligence.
He said ZCDC had revamped the entire diamond valuation process to enhance transparency.
“ZCDC’s diagnostic analysis conducted during the first quarter of 2017, as part of strategy formulation and business modelling, indicated that Zimbabwe’s diamonds were underpriced in the market,” said Dr Mpofu.
“These developments affected revenues generated from diamond mining to benefit the fiscus.
“In addition, lack of transparency and accountability from some of the former miners also meant that Government could not fully realise the country’s diamond proceeds. he said.
“But we hear them complain that they are operating with antiquated equipment and now that they have made some extra money they want to invest in replacing the machinery to guarantee efficient production.
“There are cases where more money is coming into companies, but there are even more pressing needs waiting for that money.”
But the workers are adamant that they are entitled to a bonus.
Zimbabwe Federation of Trade Unions (ZFTU) secretary-general Mr Kenias Shamuyarira said he was disappointed by the position within the private sector to deny employees a “token of appreciation”.
“The position taken by employers (in the private sector), to blatantly declare that they are not going to give bonuses this year, is an indication of an agenda to make huge profits at the expense of the worker,” he said.
“The employers are not valuing the worker, yet they continue to drive top-ofthe-range vehicles. If we are in tough times, let it be for both employer and employees,” he said.
Zimbabwe Congress of Trade Unions (ZCTU) president Mr Peter Mutasa said his organisation will challenge the employer’s position.
“We are definitely going to challenge any employer who puts forward that position. We will use whatever means available to us,” he said.
“Most workers have contracts and collective bargaining agreements that make it mandatory for employers to pay bonuses. If it means going to the courts, we will do so.”
Mr Mutasa also called on Government to consider reforming the country’s labour laws which he argued exposed the workers to exploitation.
“ZCDC’s business model was developed with a strategic intent to de-risk and ensure implementation of an effective diamond value management framework.”
The ZCDC chief executive said following enhanced cleaning of the diamonds, gem quality has increased.
He said ZCDC also planned to establish a world-class “sorting house” to increase value of diamonds.
“To ensure that the sorting house meets world-class standards, ZCDC is working on investing in modern technology in the sorting of diamonds,” said Dr Mpofu.
“The strategic intent is to have a handsfree sorting technology.”