(IDEX Online News) – The Zimbabwe government has published regulations empowering local diamond companies to grade, cut, polish, and process stones as well as sell them to international buyers.

 

The government aims to establish a diamond park in Harare next month as it reforms the mining sector to maximize income and benefits from the country’s mineral resources.

 

"Every local diamond manufacturer who has obtained rough diamonds from the local diamond pool shall sort by grading the rough diamonds by shape, clarity, color and size and cut and polish or otherwise process the workable rough diamonds within the time and in the manner specified in its application for the purchase of the rough diamonds," the government said.

 

Diamond companies must submit written returns to the Minerals Marketing Corporation of Zimbabwe (MMCZ) general manager in relation to the volume of rough diamonds bought locally. Companies who fail to stick to the regulations may be barred from further business in the sector.

 

"Any local diamond company selling rough diamonds shall account for the source of such rough diamonds and apply to the (MMCZ) general manager for permission to sell them. Every local diamond manufacturer shall account for the source of unworkable rough diamonds by submitting a return that links the unworkable rough diamonds to the purchase source," the government declared.

 

Any diamond manufacturer can take part in international rough diamond sales after applying to the MMCZ general manager.

 

Fees for diamond licenses, valid for 10 years, have been reduced to $20,000 from $100,000 previously.

 

The chairman of the center, Lovemore Kurotwi, said that "the country is set to benefit immensely from the project with the creation of 100,000 new jobs," The Herald newspaper reported.

 

Other benefits include local value addition, increased tourism as foreign buyers visit the country, and a boost to the transport and hospitality sectors.

 

Mr Kurotwi said the diamond centre would "create confidence with investors as there would be proper management and trade of the resource".

 

"Investors will help fight the liquidity challenge that the country is facing with the injection of much-needed foreign direct investment that comes through the trade of diamonds in the country.

 

"The center is a one-stop shop as it will have everything needed for trade and world-class standards," he added.

 

The project cost has been estimated at more than $50 million. The facilities will include a five-star hotel, banks and a shopping mall.

 

The auction floor will accommodate 50 companies, and the center will also host insurance companies, courier firms and regulatory services.