The first sale of Zimbabwe's diamonds in Europe this week raked in about 10.5 million U.S. dollars, giving fresh hopes that the European market will enhance the performance of Zimbabwe's diamond industry, already a pillar of the economy, state media reported Friday.
The auctioning of diamonds at Antwerp World Diamond Center, Belgium, followed the lifting of sanctions on the state-owned Zimbabwe Mining and Development company (ZMDC) by the European Union in September.
The sanctions were in place over the past three years, accusing the Zimbabwean government of alleged human rights abuses in diamond mining operations.
Upon lifting the sanctions, the world diamond trading body in Belgium said it was convinced a combination of solid transparency, accountability and potentially increased mining revenues would contribute to a sustainable social and economic development of Zimbabwe.
Zimbabwe's senior Mines and Minerals Development Ministry official Francis Gudyanga said from the first diamond sale in Europe, the government would earn at least 1.5 million U.S. dollars, or 15 percent royalty fees, paid by the selling companies.
The development comes at a time when the Zimbabwean government is taking measures to increase revenue generation in the mining sector.
ZMDC managing director Engineer Jerry Ndlovu said the Antwerp sales will increase Zimbabwe's revenue inflows by at least 20 percent.
According to Finance Minister Patrick Chinamasa, the treasury had expected to collect non-tax revenue from diamond amounting to 61 million U.S. dollars this year but it did not materialize.
The carats sold were supplied by Zimbabwe's five mining companies -- Marange Resources, Diamond Mining Company, Anjin Investments, Ji'nan and Kusena Diamonds – which operate in the diamond-rich east Marange region.
Zimbabwe, home to one of Africa's richest diamond reserves, produced 12 million carats of diamond last year, according to government statistics. Half of Zimbabwe's diamonds come from Marange.
