Zimbabwe 'to earn $2bn from gems'

Published on Tuesday 31 August 2010 17:01

Zimbabwe's diamond output from its Marange fields will reach 40 million carats in the next three years, with annual revenues expected at around $2 billion, a government adviser has said.

The government says it has stockpiled 4.5 million carats from its two joint venture mines in Marange since January and that it sold its first stones last month after approval from global diamond industry regulator, the Kimberley Process (KP).

"With the new diamond find in Chiadzwa (Marange], we're estimated at 40 million carats per year and $2bn per year in revenue," said Belgian diamond expert Filip van Loere. He is advising the government on ensuring compliance with the KP.

"Zimbabwe has been propelled to the number one spot as the world's most important player and it will be number three in value. That is estimated to come along within the next two to three years."

Zimbabwe's unity government, formed by president Robert Mugabe and Morgan Tsvangirai, now prime minister, says it needs $10bn to fix an economy ravaged by hyperinflation, which peaked at 500 billion per cent in December 2008.

Mr Van Loere said Zimbabwe could surpass top diamond producers such as Russia, Botswana and South Africa, but said a sudden increase in output on the global market could force prices down.