Local diamond cutting and polishing industries yesterday complained they were not receiving good quality gems from diamond mines and said the annual $100 000 fees was threatening their viability.
Chairman of the Diamond Beneficiation Association of Zimbabwe Richard Mvududu appeared before the Parliamentary Portfolio Committee on Mines and Energy where he spoke about the problems the sector faced.
The committee is chaired by Guruve South MP Edward Chindori Chininga Mvududu said while the mines provided local cutters and polishers with the precious mineral, only 25% was good quality while the rest was poor.
Most of the high quality stones, he said, were sold to international buyers.
Currently, the policy demands that 10% of diamonds be sold to local cutters and polishers so that they add value to them.
The biggest problem that is going to stop a lot of local diamond cutters and polishers from operating is the high licence fees.
We have experienced a 100% increase from $20 000 to $100 000 per year, said Mvududu.
The tenure of our licences is only 12 months, while other players in the region get their licences at low rates and they are valid for five to 10 years. Mvududu said the local industry had the capacity to employ 600 people and the ability to train 300 within 12 to 18 months.
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He said the current system where cutters were asked to go to tender to buy gems threatened their viability.
Mvududu said there were very few skilled diamond cutters and polishers in Zimbabwe trained in South Africa or India.
