Dubai diamonds auction: Zim rakes in $29m

HARARE - Zimbabwe realised $29,2 million from the auction of 380 000 diamond carats in Dubai last week.

From the earnings, Mines minister Walter Chidhakwa said government will collect $4,3 million in royalties.

Seven diamond mining companies based in Marange participated in the gem sale, which achieved an average price of $76 per carat, 5,4 percent higher than the $72 per carat attained in the previous auction in Antwerp, Belgium.

“The Dubai tender was attended by 101 companies which was less than the 167 companies who attended the Antwerp tender last month,” Chidhakwa said.

This is the third time Zimbabwe has sold its gems on the international market following the lifting of sanctions imposed on State-owned Zimbabwe Mining Development Corporation by the European Union.

The first two sales were held in Antwerp in December 2013 and February 2014 yielding $10,5 million from 279, 723 carats and $70 million from 959 931 carats respectively.

Chidhakwa said the main objective of undertaking the international tenders is to enable authorities to gain experience in conducting gem auctions. Harare plans to resume local diamond auctions before year end.

According to government, diamonds contributed less than $200 million to the fiscus last year.

Government is also pushing for value addition of the rough diamonds so that the country realises more from the mineral.

Zimbabwe is believed to have 30 percent of the world’s diamond reserves and has capacity to supply 25 percent of global diamonds demand.

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Comments (1)

Can somebody help me, I'm a bit confused by this report. It says Zimbabwe realised $29.2 million from the sale and then goes on to say government got $4.3 million. My question is when you say Zimbabwe, are you not talking about the government. If we Zimbabweans got the 29.2 million, where have we put it, what do we plan to do with it? Are we any richer, have we not been ripped off?

Dr Know - 8 April 2014

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