The Minerals Marketing Corporation of Zimbabwe (MMCZ) yesterday deployed subagents in the Hurungwe district, tasked with buying gemstones as the Corporation aims to increase exports of semi-precious stones.
By Ryan Chigoche
This development comes at a critical time, as MMCZ exported gemstones worth only US$200,000 in 2023, a figure indicating rampant smuggling through unofficial channels, as the numbers do not reflect local production.
Locals are involved in the gemstone mining sector, which is currently dominated by foreign buyers who then smuggle the stones outside the country, resulting in very low official exports. The subagents will be directly competing with these foreigners for the stones.
Speaking at an event in Karoi, Mashonaland West Province, MMCZ’s Effort Shoko said the subagents in Hurungwe district are the first step to rapidly increasing official exports, with plans to expand to other areas.
“MMCZ subagents will purchase minerals at fair prices for the benefit of the community and the country at large. This area has many minerals, so we are here to ensure they get a fair value. We are also planning to go to other areas with vast gemstone resources,” Shoko said.
Mining research expert and subagent Lyman Mlambo told Mining Zimbabwe that the MMCZ initiative is a step towards formalizing the sector, which is estimated to produce over US$20 billion annually, despite current exports being significantly lower.
“We estimate the industry to be around $20 billion, but what we are exporting is less than a billion every year. The problem is not that we are not producing but the accounting aspect,” Mlambo said.
“And the problem is also the illicit flows in the gemstone sector. Some production goes unaccounted for because it goes, for example, to the Zambian border, where there is a very organized market. So you have a lot of illicit flows from here to Zambia.”
He added that by formalizing the quality of the gemstone market, the subagents can channel production to MMCZ through official channels, enhancing accountability and improving government revenue.
Zimbabwe Miners Federation National Secretary Privelage Moyo, who also spoke at the event in Karoi, concurred with Mlambo and advised miners to sell to the subagents for the benefit of the country and communities, noting that foreigners are paying close to nothing for the minerals.
“Gemstones are a billion-dollar industry, however, the government wasn’t benefiting. The subagents will ensure that the government benefits. No foreign nation should be allowed to buy the minerals on the ground, they should come to MMCZ,” Moyo said.
As it stands, the government is losing fiscal revenue and export revenue due to mineral leakages.
The event was also attended by local chiefs who approved the activities to be undertaken by the 23 subagents operating in Hurungwe.
Zimbabwe has a total of over 40 special coloured gemstones. Mashonaland West Province, where Karoi is located, is home to several significant gemstone deposits that contribute to Zimbabwe’s rich mining heritage.
The region is known for its diverse array of gemstones, including amethyst, aquamarine, and garnets, which are often found in the surrounding mountainous areas. Artisanal miners frequently explore riverbeds and hillsides for these precious stones, leveraging the area’s geological formations. The province is also known for its potential in gold and other minerals, which often coexist with gemstone deposits. Globally, the market for gemstones is huge, with some even fetching more money than diamonds.
MMCZ faces challenges regarding payments, as it can take up to six months for miners to receive their dues. This situation is currently being exploited by foreign buyers who come in with cash, offering far below the original value.
