The Minerals Marketing Corporation of Zimbabwe (MMCZ) says it will soon conclude a joint venture (JV) agreement with Angolan State- owned company Katoka for the mining of diamonds in the Marange area.

MMCZ chairperson Christopher Mutsvangwa says that, following preliminary discussions with Angolan government representatives at the recent Mining Indaba, in South Africa, the groundwork has been laid for a government-to-government diamond mining deal.

“There were a number of issues dis- cussed during the Mining Indaba. One of the issues was the need to promote the emerging intra-African cooperation to consolidate investments among countries on the continent. “Through its State-owned diamond mining company, Katoka, Angola will soon be investing in a JV project with the MMCZ to exploit the diamonds in Marange. This will go a long way towards strengthening our diamonds industry.”

He says Katoka, which produces an average of eight-million carats a year, will provide capital to kick-start the project. The MMCZ boss says the corporation plans to pursue JVs in other mining subsectors, including gold and coal, as well as tantalite and other rare-earth minerals.

Mines and Mining Development Minister Obert Mpofu says there is huge inter- national appetite for Zimbabwean diamonds, with representatives of diamond processing companies in India visiting the country to seek more raw gems in the face of declining output from tradi- tional suppliers, including Botswana, Russia and Canada. Demand in India, he says, will spur growth in the local mining sector.

“We value the Indian initiative to look to Zimbabwe for their mineral needs. We will respond positively because India has been a friend to us. India is a big market for diamonds, just like Russia and the US. We are also working with the United Arab Emirates, Jordan and other countries in the Middle East.”
India has stated that, owing to declining output from traditional gem suppliers like Botswana, Russia and Canada, most of the country’s gem cutting and polishing companies are turning to Zimbabwe for a reliable and affordable supply of high-quality gems.

“Gem processors in India’s Surat, the world’s biggest diamond cutting and polishing centre, are looking to Zimbabwe for rough diamonds as production from companies like De Beers has decreased phenomenally. “Two of the largest diamond mines in the world – Canada’s Ekati and Diavik mines – have exhausted openpit resources and both are now underground mines. Converting a mine from an openpit operation into an underground operation typi- cally results in curtailed production.

“Ekati’s production declined by 28% year-over-year in 2012 and Diavik’s out- put is [expected] to fall by 17% year-over- year in 2013. Three more of the world’s largest mines are set to go underground over the next few years, as Russia’s Udachny mine is expected to be con- verted into an underground operation in the next two to four years and Botswana’s Jwaneng and Orapa mines are expected to follow suit,” the Indian Times reported recently.

The newspaper quoted Indian diamond analyst Aniruddha Lidbide as saying: “As rough diamond production in the world’s leading mines is on the decline, Zimbabwe is the only hope for Indian diamantaires. It is only Surat which has the skills to cut and polish the Zimbabwe stones.”

Thanks to increasing investor and market interest, the Zimbabwe Mining Development Corporation (ZMDC) expects local diamond firms to produce at least 16.9-million carats this year, up from eight-million carats last year. Four of the companies already engaged in diamond mining are 50:50 JVs between the ZMDC and private enterprises, while the fifth, Marange Resources, is wholly owned by government.