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Lloyd Gumbo Harare Bureau
ABOUT 140 diamond buyers are expected to participate at the local diamond sale that opened in Harare on Monday. All seven diamond mining companies in the country are expected to sell their produce.

This will be Zimbabwe’s biggest diamond sale locally and from now on the country is expected to sell its precious gems locally every month-end, a development that is seen improving cash flows for all the miners.

The tender, run through an independent facilitator in line with international best practices will be closing on November 6.

The sales are being conducted at the Minerals Marketing Corporation of Zimbabwe offices.

Mines and Mining Development permanent secretary Professor Francis Gudyanga on Monday said the onus was now on miners to produce enough gems to satisfy the market.

“We’ve a bumper number of buyers who’ll be participating at this tender – about 140 of them,” he said.

“It’s a good sign for the country as it stands to benefit from these local sales. The challenge we have now is: are we producing enough? We’re therefore urging all the companies to make sure they produce as much as they can to satisfy the demand.

“We intend to have these (sales) monthly as all the companies would wish. It’s a very transparent exercise where we’ve an independent facilitator and our people are there as well.”

During a recent sale where only Marange Resources and Diamond Mining Company participated miners complained that buyers offered half of the international prices with players suspecting connivance among the buyers.

About 25 valuators from 12 companies mainly India, Namibia, South Africa and Zimbabwe participated at the tender.

But Prof Gudyanga said that was unlikely to be the case this time around as more buyers were coming.

“As long as we’ve many buyers it’ll push the prices (up) because it follows demand. It’s a self adjusting industry,” he said.

Marange Resources acting chief executive Mark Mabhudhu confirmed that their gems would also be on sale.

“We’re participating with everyone else. The facility (at MMCZ) is very nice, even better than some international ones. We’re expecting good sales,” he said.

“It’s the first time that all producers are participating at the same time under the same conditions according to international best practices.

“The good thing is that now it opens opportunity for players to go and sell whenever they have sufficient stock under similar conditions. This will help us in cash flow that’ll enable us to pay our obligations.

“The important thing is that there’s a tender manager, which removes interaction between those who produce and the buyers and it allows candid negotiations,” said Mabhudhu.

DMC general manager Ramsey Malik welcomed the current tender saying it would go a long way in improving the local diamond industry.

“It’s a first that all diamond mining companies will offer their produce to both international and local diamond buyers,” he said.

“This is the way normal business is conducted. You’ve to be given the chance to sell when you want to and when your company is in need of funds for operational needs.”

Anjin Investments public relations executive Martha Chikata said: “Yes, we’re participating in the local sale. In any case it’s not the first time we’ve conducted a local sale, we’ve conducted many local sales in the past as long as it can attract good numbers of buyers offering competitive prices.”