Diamond auction attracts 25 firms

19 Sep, 2019 - 00:09 0 Views
Diamond auction attracts 25 firms

The Chronicle

Oliver Kazunga, Senior Business Reporter

THE Minerals Marketing Corporation of Zimbabwe (MMCZ) says the country’s third diamond auction for this year which closed last week has attracted 25 companies from around the world.

The 316 000 carat diamond auction was opened on September 9.

Speaking by telephone from Harare yesterday, MMCZ general manager Mr Tongai Muzenda said:

“We had invited 28 companies for this third diamond auction and three did not come and this means we attracted 25 companies.

“And they are doing the reconciliation.” 

Mr Muzenda without revealing the names of the companies that had shown keen interest on Zimbabwe gemstones under the third auction, said MMCZ was now looking forward to the buying firms to pay for the commodity.

The auction attracted buying interest from Belgium, Dubai, India, Israel and South Africa.

Zimbabwe expects to produce 4,1 million carats of diamonds this year up from 2,8 carats last year.

At the peak of production in 2012, Zimbabwe’s production was 12 million carats.

In June this year, Mr Muzenda said Zimbabwe invited seven international diamond buyers to participate in a private sale of nearly two million carats.

This was after the country had postponed the sale of diamonds as authorities wanted to understand processes and procedures involved in diamond marketing.

The diamonds were produced by State-owned Zimbabwe Consolidated Diamond Company (ZCDC).

ZCDC was formed in March 2016 after the Government evicted all diamond mining firms in the Chiadzwa fields following the expiry of their licences.

Under a private sale, selected buyers are invited for valuations of diamond parcels available for sale. 

The price that the buyer offers is then compared with the valuations that would have been done by the producer. 

If there is a variance in what the producer is asking for and what the buyer is prepared to pay, the parties negotiate.

If the parties fail to agree on price, the parcel will be rolled over and other buyers will be invited.

Private sales are a new model since consolidation of the diamond industry. 

Previously, the sale of diamonds was only done through scheduled auctions where buyers were publicly invited.

Zimbabwe is ramping up diamond production and negotiations are ongoing with some global investors, including Alrosa of Russia, which intend to extract the mineral. — @okazunga

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