Diamond Mining Industry at Zimbabwe
THE Reserve Bank governor, Dr Gideon Gono says that Zimbabwe’s economy could be turned around in the next few years if the country does not continue to lose revenue from illegal dealing in the mining industry. He said that Zimbabwe is currently losing US$1.2 billion a month to illegal diamond dealing.
Dr Gono made this shocking revelation at the quarterly outstanding law officers’ award ceremony held in the capital, Harare.
He said over 500 syndicates operate in the eastern region of Manicaland where diamonds were discovered in the last four years.
According to Gono, the amount currently being lost via the illegal syndicates is more than enough to turnaround Zimbabwe’s economy and help deal with some of the economic challenges facing the country.
“A reliable estimate shows that US$1.2 billion per month would be realized from diamond sales in the country, enough to solve the economic challenges the country is currently facing,” said the Reserve Bank governor.
“We have investors who are able to mine and bring US$1.2 billion every month while we only need US$100 million a month for all our difficulties to go,” he added.
Analysts believe Zimbabwe has enough mineral deposits to turnaround the economy if the production and marketing is properly managed. The country boasts gold, platinum and chrome as the principal endowments. The country’s gold reserves are among the largest in the African region, while it hosts the second-largest platinum reserves in the world.
Diamond mining started only four years ago with the discovery of kimberlites in the Manicaland region, but already the industry is fast becoming the major foreign currency earner. With an estimated US$1.2 billion being lost to smuggling every month, the country stands to benefit from a well-managed diamond production industry.
