(IDEX Online News) – Large quantities of Zimbabwean rough diamonds could be about to enter the world's biggest diamond cutting and polishing centre in Surat after the Diwali vacation which starts on Friday and lasts for 20 days.

 

The European Union (EU) last month lifted sanctions on the Zimbabwe Mining Development Corporation (ZMDC) and the five companies linked to it that operate in Marange whose operations have been certified by the Kimberley Process.

 

"We waited for the lifting of EU sanctions on Zimbabwe,” a senior official of the Gems and Jewellery Export Promotion Council told The Times of India. “Now, huge quantities of Zimbabwe diamonds would flow into Indian markets. Surat is the only centre in the world that can process the Zimbabwe stones."

 

Meanwhile, Surat Diamond Association President Dinesh Navadia said, "We expect the flow of Zimbabwe diamonds into the market to force the big diamond mining companies to reduce their prices. There will be enough raw material for the small and medium diamantaires once the units reopens after the Diwali vacation."

 

An Indian source said the situation regarding the Marange diamonds was not entirely clear cut, however. “It is true that Marange can produce even more than the eight million carats reported last year, and that the lower quality of the items and prices are suited to the Indian market.

 

“On the other hand, there is a lot of interest from around the world in buying the goods. Just last week, officials from the Antwerp World Diamond Centre (AWDC) were in Zimbabwe in an attempt to create a mechanism where the Marange goods would be sold via Antwerp. That would push up prices, making them somewhat less worthwhile for the Indian market.

 

“Add to that the serious liquidity problems the Indian trade is facing, and we can see that the idea of huge volumes of Marange goods arriving here cannot necessarily be taken for granted,” he added.