Zimbabwe’s First Diamond Sale

The chairman of Mbada Diamonds Robert Mhlanga said Thursday’s sale will be followed by another one next week and they will be declaring dividend to government as soon as the transactions are completed.

“International diamond buyers from as far as the Americas, Europe and Asia have already started arriving for tomorrow’s sales, which are expected to run for the next three days,” said Mhlanga adding that they will be accepting buyers who take the gems in large volumes.

He said the Zimbabwean government, through Marange Resources, is expected to earn 75 percent of the total sales revenue through a 50 percent weekly dividend, a 10 percent royalty fee, 15 percent taxation and a five percent resource depletion fee.

“In order to ensure maximum security and compliancy with the Kimberly Process, the first consignment of the diamonds on sale were airlifted from Chiadzwa diamond fields under guard from the police, Mbada Mining
security officers and the Government Mineral Unit,” said Mhlanga.

Officials from the Zimbabwe Revenue Authority (Zimra) will also be at the points of sale to ensure that there are no leakages.

Mhlanga said since the commencement of the diamond mining operations towards the end of last year, Mbada Diamonds has put in massive infrastructure including water, housing, a private airstrip and fenced over 1000 hectares of the mining concessions.

The chairman also revealed that they have embarked on a massive housing project and crop input scheme worth millions US dollars for relocated families from Chiadzwa and Marange areas.

Villagers from Chiadzwa are fighting relocation arguing that they can only move after being compensated.