THE government is optimistic about reaching its 2025 diamond production target of 10 million carats, contingent on securing the necessary capital for the Zimbabwe Consolidated Diamond Company (ZCDC).
The ZCDC is targeting diamond output of 5,7 million carats this year, with production driven by increased efficiency and expansion efforts.
Pfungwa Kunaka, Mines ministry permanent secretary.
“The 2025 target, as I mentioned earlier, currently stands at approximately six million carats annually. With the guidance of the country’s leadership, we have set a new goal of 10 million carats,” said Mines ministry permanent secretary, Pfungwa Kunaka.
“We are on course to achieving the target because all we need is further capitalisation of ZCDC, which is the main producer in the government stable. If we ensure there are no leakages and we get the right prices in the diamond trade, then we should be on track to meet the targets.”
ZCDC has already laid the groundwork for this ambitious goal by exploring new mining areas and expanding capacity.
“ZCDC is going to be expanding its mining to increase capacity. So indeed, we are confident that the target will be met.”
In line with this, ZCDC board chairman Munashe Shava recently told The Financial Gazette that the company aims to nearly double its output to 10 million carats next year.
“We have ramped up production, and this year we have set a target of 5,7 million carats. We see this target nearly doubling to 10 million carats in the coming year,” Shava said.
He noted that ZCDC has also implemented cost-cutting measures and operational optimisations to mitigate the impact of depressed global commodity prices.
Zimbabwe holds vast diamond reserves, estimated to exceed 800 million carats, and production has trended upward in recent years. Although the first quarter of 2024 saw a 13 percent decline in production, from 1,63 million to 1,41 million carats, there was a 15 percent increase compared to the last quarter of 2023, demonstrating the sector’s resilience.
The Marange fields, discovered in 2006, remain the country’s largest source of diamonds. Despite challenges, including allegations of human rights abuses and corruption, the government’s 2019 diamond policy, emphasising transparency, aims to foster growth in the sector.
Zimbabwe’s diamond industry is crucial to its economy, with mineral exports surging to US$5,7 billion in 2023, up from US$3,2 billion in 2022. Major players include ZCDC, Anjin, Murowa, and Alrosa, with Botswana Diamonds also seeking to enter the market.
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