From : Znccharare.co.zw

11 May 2012

FinX- VICTORIA FALLS, Zimbabwe’s diamond production is expected to go beyond the MTP target of 12.1 mln diamond carats after the KPCS gave the green light to sell diamonds from Marange.

Mines minister Obert Mpofu told the Chamber of Mines AGM that overall mining production will maintain its upward trend and is on course to meet the targets set for 2012. He however said that diamond revenue will not meet its $600 mln mark set by treasury as the major company mining in the area was under sanctions.

Mpofu said initially the ministry had set a monthly target of $54 mln but would not meet it because of the sanctions on ZMDC.

The performance of the sub-sector, he said was pinned upon fair access to international markets.

Mpofu noted that last year’s gold production which went past the 10t mark had made the country eligible for re-entry on to the London Bullion market. Gold shipments last year were at $600 mln.

Crafting of the Diamond Policy was progressing well. The policy seeks to ensure the sustainable development of the diamond industry and its contribution to the economy.

It (the policy) will facilitate optimisation of exploitation of diamonds throughout the value chain, security and accountability of diamonds to ensure full realization of the potential of the diamonds industry.

The process of finalizing the amendments to Mines and Minerals Act are at an advanced stage. Mpofu said the ministry was hopeful to get Cabinet approval by June.

“The amendments will provide for an improved and competitive mining legislative framework, which offers a user-friendly operating environment.”

The Act will guarantee increased capacity in mineral production, value addition and also enforce the use-it-or-lose it principle.

He said the mining sector will be presented with a more investment focused legislation based on a win-win principle that also addresses issues of levies and taxes to reflect prudence in the application of mineral rents.