See why Zimbabwe’s biggest diamond producer shifted sales to Dubai
Diamond
• Zimbabwe’s largest diamond producer has shifted the majority of its sales operations to Dubai.
• Zimbabwe Consolidated Diamond Co. has conducted auctions for 4 million carats of gemstones in Dubai this year
• The state-owned mining company aims to achieve revenue of $1 billion by 2030.
Zimbabwe’s largest diamond producer has shifted the majority of its sales operations to Dubai, with a focus on direct transactions with cutters, polishers, and traders, effectively bypassing intermediaries.
Zimbabwe Consolidated Diamond Co. has conducted auctions for 4 million carats of gemstones in Dubai this year, a significant increase compared to the 850,000 carats sold throughout 2022.
With an ambitious vision, the state-owned mining company aims to achieve revenue of $1 billion by 2030, as confirmed by Enock Moyo, the Sales and Marketing Manager.
According to Bloomberg, the three auctions conducted in Dubai have attracted an average of around 150 buyers, an increase compared to the sales events held in Zimbabwe, where the number of buyers was only a fraction of that.
Moyo noted that the presence of better-quality diamonds has played a role in this success.
The decision to sell rough stones in the United Arab Emirates has eliminated the need for middlemen, who previously participated in auctions within the southern African nation.
“For us, Dubai has been a game changer,” Moyo said in an interview.
The shift in sales to Dubai is taking place against the backdrop of a decline in global diamond prices. Major buyers in the diamond industry, primarily in India, have been urging the largest miners to reduce their diamond supply.
Last month, the Russian diamond giant Alrosa PJSC announced a halt in all sales until November due to market conditions.
In light of these challenges, the Zimbabwean producer expects gem prices to firm up by early next year.
The UAE already ranks as the No. 3 export destination for Zimbabwe, trailing behind only South Africa and China. Remarkably, the UAE is the primary purchaser of Zimbabwe’s gold and ranks as the second-largest buyer of the nation’s tobacco.
ZCDC, situated in the eastern district of Marange, is targeting an output of 5.3 million carats this year, up from 4.3 million last year.
ZCDC has also embarked on a strategic partnership with Russia’s Alrosa to form a joint venture focused on gem exploration in the Chimanimani and Mwenezi regions.
Africa.businessinsider.com
