Zim owed $17m by Dubai diamond firm

Published: 08 May 2014

Global Diamond Tenders, a Dubai-based company, hired by government to facilitate the sale of the country's diamonds at the Dubai Diamond Exchange (DDE) has only fully paid three of the seven diamond companies

Figures obtained from the ministry of Mines and Mining Development reveal that Diamond Mining Company (DMC) was fully paid $2 742 760,92 while DTZ-OZGEO was paid $845 486,42. Kusena received its full amount of $60 563,03.

Anjin was paid part of its $9 779 623,47 entitlement.

Marange Resources, Mbada Diamonds and Jinan are still to be paid and owed $4 351 045,35, $2 673 095,93 and $8 821 587,73 respectively.

GDT was hired to facilitate the sale of Zimbabwe's diamonds at the Dubai Diamond Exchange in March but has failed to remit revenue generated amounting to $29,27 million for 380 939,35 carats that were sold.

Finance and Development minister Patrick Chinamasa has castigated the Dubai Diamond Exchange as an untrustworthy market for Zimbabwean gems after the delay in relaying the proceeds from the March sale, which has suffocated both government and the mining companies, who are critically in need of the finance.

The money should have been transferred within three days but three mining companies Marange, Mbada and Jinan are yet to be paid for their gems over a month later.

The Mines and Mining Development minister Walter Chidhakwa told journalists on Monday, government would carry out a probe of the Dubai based middleman who failed to transfer part of the $30m in earnings from diamond-auction held last month to local miners, affecting their operations.

The government was yet to decide whether they will continue engaging the international facilitator GDT to auction its diamonds in Dubai or will search for another middleman.

"There was an expectation certainly that amounts had to be paid within a certain time frame and that was not done. The permanent secretary has taken the matter with the company responsible to look at what it is that caused these difficulties," added Chidhakwa.

He suggested that the government could choose another facilitator in future auctions but in the long run, the country should have its own Diamond Exchange.
- Zim Mail

Tags: Diamonds,