Diamond output to rise 19% this year
Diamond production is expected to rise 19% this year to 5m carats from 4,2m achieved last year due to the opening up of the world economies following the slowing down of the Covid-19 pandemic.
The improvement in production is also premised on the back of various expansion projects that diamond mining companies are undertaking.The Chamber of Mines of Zimbabwe CEO, Isaac Kwesu (pictured), told Business Times that all diamond mining houses are expected to ramp up production this year following the expected completion of various projects which will improve the companies’ capacity.
“We are expecting diamond output at around 5m carats in 2022 from 4,2m carats in 2021 with various projects expected to boost diamond output in the outlook,” Kwesu said.
Last year, out of the 4,2m carats, the country’s largest diamond miner Zimbabwe Consolidated Diamond Company (ZCDC) contributed 3,78m carats.
Murowa, an associate of RioZim, which contributed about 10% of the total output, associated its reduced output in 2021 with low-grade ores.
ZCDC commissioned a 450 tonnes per hour metallurgical processing plant.
The mining company is expanding operations from alluvial operations to conglomerate ore processing.
Murowa Diamonds expansion project is almost complete and is expected to be commissioned this quarter.
Murowa processing capacity will grow to 500 000 tonnes per month from 190 000 tonnes per month.
ZCDC/ALROSA joint venture agreement has begun the exploration and establishment of a diamond washing plant with a capacity of 1 tonne per hour of ore.
Anjin diamond has reopened its diamond mine and is expected to produce up to 12m carats by 2025.
ZCDC resumed its monthly auction in April, ending an eight-month hiatus caused by Covid-19, after a record year of production in 2021.
These auctions are held monthly.
The company projects a further increase in output this year.
“For 2022, we are set to not only achieve, but exceed our diamond production target by more than 40% when compared to the 2021 baseline target,” ZCDC chief executive officer, Mark Mabhudhu said.
He said the Russia-Ukraine conflict has “far-reaching consequences” for many businesses.
Russia’s Alrosa, the world’s biggest producer which is currently prospecting for diamonds in Zimbabwe, is one of the Russian companies placed under Western sanctions over the Ukraine conflict.
This may push for an increased demand for ZCDC’s own stones.
The country’s diamonds have faced restrictions in the USA, which is the key gem market.
In 2019, the US held a shipment of Zimbabwean diamonds claiming they had been produced through forced labour.
Furthermore, Tiffany & Co, the leading American luxury jeweller, also stopped stocking Zimbabwean diamonds over human rights concerns.
Buyers for this month’s sale are drawn from various areas such as Dubai, Israel, India and South Africa.
According to experts, the resumption of the auction sales is expected to provide a litmus test on the viability of the country’s diamond value chain.
But Mabhudhu said the diamond mining industry has its fair share in terms of growth such that its sustainability hinges on the ability of the auction to generate lucrative earnings from the potential buyers across the globe.