(IDEX Online News) – The first ever sale mining output by the Chinese-owned Anjin mine in Marange is taking place December 2-5, 2011 in Harare, Zimbabwe. The Anjin mine has been operational since mid-2010, but so far has never sold its production, as it was waiting for Kimberley Process compliance approval.

 

Recently, following the recent KP decision on the Marange goods, the KP Monitors have verified that all goods mined to date are held in stock, certifying the mine’s production on November 17, 2011.

 

Some 500,000 carats of diamonds are going on sale. According to an Anjin spokesman, the average size of the stones auctioned is 4 carats and larger stones have not been excluded. The auction includes a 30.45-carat gem quality stone.

 

The Anjin run-of-mine production is typical for Marange mines. Some 8 percent-10 percent is gem quality and 45 percent-46 percent is near gem (the so-called Indian goods). The remaining goods are of industrial qualities (boart). In terms of size, the bulk of the production is estimated to be in the 3.5-6.0 carats range.

 

The current tender is by invitation only, and only 14 bidders have been invited. They include all the companies that have applied for a manufacturing license in Zimbabwe and foreign rough buyers. Last minute applications might still be considered.

 

The available 39 parcels have apparently been sorted and therefore are not run-of-mine. The company decided on a policy that no single buyer could purchase more than 30 percent of the offered goods by value.

 

The total value of the offered goods is not known, as they may not represent typical run of mine. It may run $20-$30 million.

 

For those not invited to the present auction, we were told, “it is not impossible that a next auction will be held in January 2012.” As the company should have several million carats in inventory, the timing of the first few sales are pure marketing decisions and not dependent on current output.

 

Anjin is believed to be able to produce about 500,000 carats per month, possibly more, at full capacity.  

 

The company is aware of the visa problems faced by some Indian buyers who received last minute invitation and it is making all efforts to assist and accommodate them.

 

The auction is organized by the Minerals Marketing Corporation of Zimbabwe (MMCZ) and is taking place at Anjin’s premises on the eve of the DTC sight.

 

Anjin is not impacted by historical reputational problems. Well before commencing its sales, it has built schools for the youngsters living in the mining area, it has built a clinic, has brought in Chinese doctors who treat patients free-of-charge. However, most significantly, it has allocated some $100 million for social responsibility programs that include the building of homes, roads, and other infrastructure. A large part of that program has already been materialized.