Zim Miners Told To Sell Diamonds Via Central Bank To Enable Govt Loan

(IDEX Online News) – Diamond miners in Zimbabwe have been told to sell their gems through the central bank, which will use the stones to secure a government loan, according to a letter written to them by the country’s mines secretary.

The secretary, Francis Gudyanga, instructs , producers to “prepare parcels of all your currently produced diamonds which must be sorted and evaluated with the involvement of the Minerals Marketing Corp. of Zimbabwe,” a state company, and payment will be made soon after.

The stones are to be kept by the central bank and used to “securitize a government loan,” Gudyanga said in the letter, obtained by Bloomberg, which was sent to miners on April 28 and came into effect on April 30.

The southern African nation’s deputy mines minister Fred Moyo said May 7 that Zimbabwe may use mineral exports, including gold and diamonds, to underwrite loans from China.

“They are in the process of complying,” Guydanga said, confirming the veracity of the letter.

Zimbabwe is expected to mine 16.9 million carats of diamonds this year, according to mines ministry estimates. Last year the country produced 8 million carats worth $685 million.