The Zimbabwe Consolidated Diamond Company (ZCDC) has revealed that it has invested in technology aimed at increasing the value of its diamonds so they can fetch higher prices on the market.
About 80% of the diamonds mined by ZCDC come with a skin, making it difficult to determine the quality of the stones until the skin has been removed.
In diamond mining, a skin refers to the natural, rough and unpolished outer surface of a raw diamond as it comes out of the earth. This skin must be removed to reveal the actual quality and type of the diamond.
The situation has forced ZCDC to invest in technology that helps remove the skin and expose the quality of the diamonds being mined.
Addressing the Parliamentary Public Accounts Committee in Chiadzwa recently, ZCDC chief executive officer Douglas Zimbango said the technology now allows the company to identify gem, near-gem and boart diamonds more effectively.
‘’What we have done at ZCDC is to try and increase the value of our diamonds, because the valuable diamonds are the gems. And out of what we mine, only 12% is gem, gem quality.
‘’Because our product comes with a skin, sometimes you can’t see what kind of product you have. So we have invested in technology to try and open up the skin so that we increase the value of our gems, the real diamonds that people want for jewellery. And we are still on 12%.
‘’And this affects the overall pricing of our diamonds, because that is where the money is. So we mine 100%, but out of that 100%, only 12% is sold as gems. So we are trying to work things out so that we realise value within the sector,’’ he said.
A boart diamond is a natural diamond that lacks the clarity, colour or structural integrity required for use as a gemstone. Instead, it is mainly used in industrial manufacturing for cutting, drilling and grinding, among other purposes.
According to Zimbango, before the skin is removed and the diamonds are cleaned, they appear more like ordinary stones.
‘’We clean it, we deep boil it, and we depot to get the final product. That is clear. From that final product, you can actually pick the gem, the near gem, and the boart.
‘’So just for the information of honourable members, the boart, which is about 80% of what we mine, is very cheap stuff. It’s industrial diamonds. They are about $5 per carat.
‘’But with the gems, you can go as much as $8,000 per carat. So if we play in that space of the gems, we can make money. And that’s why we are moving to Kimberlite, Kimberlite mining,’’ he said.
The ZCDC boss said there are greater benefits in shifting to Kimberlite mining, as it produces more gem-quality diamonds compared to the current conglomerate deposits.
He, however, noted that moving to Kimberlite mining would require significant investment, particularly in exploration work.
‘’If you go to Kimberlite, you can get as much as 80% gems. So that’s the direction that we want to go. But there’s need for serious investment in exploration.
Kimberlite mining refers to underground mining using highly mechanised operations, which is different from the current conglomerate mining that is largely open-cast.
Meanwhile, ZCDC has been increasing its production over the years, with the company targeting about five million carats, although most of it will still be boart.
‘’As you can see, we’ve been increasing our production over the years from when we started. And you can see that we are actually aiming to hit the 5 million carats.
‘’But again, like Mr. (Ernest) Denhere Mtapa Investment Fund deputy chief investment officer) said, we need to focus on quality rather than quantity. The 5 million carats still is 80% boart. When we want gems. So there is a bit of work that needs to be done,’’ he said.
