Diamond production in Zimbabwe plummeted sharply over the last few weeks the Standard reports. Production dropped by a whopping 78.9% in July following a drop in price at the international market. The publication obtained figures from the Mines and Mining Development ministry, which revealed that diamond production at ZCDC’s mines in July plummeted to 37 052 carats from 175 768 carats the previous month, ZCDC only made US$1,7 million in July compared to US$7,9 million the previous month.
A source that spoke to The Standard said the international price decrease played a role in the poor production but more inhouse factors like lack of leadership played a significant role in the production decline as well. The source said:
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The issue of Zimbabwean diamonds is that the quality does not fetch much on the international market, but, however, there are allegations that the company’s top management is still involved in under declarations and underhand dealings that could be affecting operations
However, the MMCZ general manager said international diamond prices dropped significantly over the last 3 months.
The issue at ZCDC is a serious one, prices of gemstones have dropped by 30-40% in the last three months.
More: The Standard