MMCZ to rake in US50 million in gemstone revenue
The Minerals Marketing Corporation of Zimbabwe (MMCZ) is targeting to rake in US$50 million from the gemstones industry by the end of this year, a feat to be achieved through bringing in gemstones from producing communities into the formal economy, an official has revealed.
Prince Sunduzani
The entity, responsible for the marketing and sale of minerals in the country, says it has initiated a mop-up exercise of the precious stones, which are believed to be in abundance in the mining communities.
The resources of semi precious stones in Zimbabwe are estimated to be vast their total value is estimated at $20 billion.
The country hosts about 33 different types of semi-precious minerals. The minerals are under-explored, so the estimated number of the types and value would be way below the actual.
These minerals are easily found mined, sometimes just collected or picked in the fields.
Mining of semi-precious stones in Zimbabwe is dominated by Artisanal Miners who sell informally to foreign dealers, mainly the Congolese, Mozambicans, Pakistanis, Indians and Chinese who come to their mining sites, some of whom are cartels.
Miners do not appreciate the value of these minerals hence they sell them cheaply to these dealers
As part of its drive to attain the $50 million figure, MMCZ is going to set up mineral buying centres in gemstone mining communities to sweep gemstones within the producing communities, which have been slipping into the hands of these illicit traders who have been undercharging mining communities.
Speaking in an interview on the side lines of the gemstones industry awareness workshop held at a local Hotel in Harare, MMCZ deputy general Manager-Marketing Mr Masimba Chandavengerwa said the company is putting in enacting measures to meet this monumental target.
He said, “We are focusing on buying from producing provinces. Our focus now is to go out there. We have been allowed by the ministry to go and mop up all the gemstones that are out there,
“We think that with proper education, most of the people who are holding on to the gemstones will see the benefit of coming to the formal channel, which is MMCZ.
Mr Chanda said the target was achievable, given the number of gemstones that the country is losing through the informal market.
He called on Gemstone stakeholders to draft an action plan to catalyse this process so that the country does not continue losing through illicit financial gemstone trade and overnight sales.
Low quantities of semi precious stones are coming to MMCZ, the corporation had in the past not been serious about their marketing as it is not viable to organize small consignments.
Speaking at the same event, Zimbabwe Miners Federation CEO Mr Wellington Takavarasha challenged the MMCZ to offer competitive prices to encourage individuals to sell through o formal channels.
He said MMCZ’s pricing system was one of the reasons why Miners were choosing the informal route, thus defrauding the country of much-needed gemstone revenue.
Takavarasha also urged the government to enhance the value addition of the gemstones and design laws that enhance gemstone mining, as the sector is being under utilised.
“Miners have complained about the MMCZ pricing system. People have come up with their gemstones and say the value that is being given by MMCZ does not tally with international world market standards. So as a result, people then go into illicit trade. There is also inadequate legislation and limited accountability,” he said.