Conrad Mwanawashe Business Reporter
Diamond miner Anjin says it has lost over $300 million in potential revenue since commencing operations in 2010 due to sanctions which hindered it from accessing European markets.
The debilitating sanctions, partially removed by the European Union last month, effectively stopped international diamond traders, among other industry sectors, to trade Zimbabwe’s diamonds.
Anjin Investments managing director Rtd Brig-Gen Munyaradzi Machacha told a session of the Zimbabwe Diamond Conference last week that Anjin could have made much more if the EU had not imposed the measures.
“As Anjin, we estimate that the company has lost about $336 million due to sanctions-induced depressed prices,” said Brig-Gen Machacha.
“The figure is arrived at by multiplying the total carats sold so far with the difference between the average price per carat and the average price for the same goods set by reputable diamond consultancy,” he said.
Anjin is one of the companies that is mining alluvial diamonds in Chiadzwa.
“We therefore believe that we could have earned much more from the diamonds that we sold. We agree with the chairman of Mbada Diamonds when he said that we are getting about 50 percent of the value of our diamonds.”
When Anjin started mining diamonds in the Chiadzwa area the environment was very hostile and the companies were not sure whether they would be able to market their gems.
“There was a vicious campaign to stop the diamonds from Zimbabwe entering the world market. As a company we are therefore very grateful to the world diamond industry who have stood with us and have made pressure to bear on the Western world to remove the illegal sanctions imposed on Zimbabwe,” he said.
The EU will, from 2015, start a $300 million programme to support health and agriculture after lifting the more than a decade-old sanctions. But Brig- Gen Machacha says the EU should do more.
“The recent announcement by the European Union on the partial removal of the economic sanctions on the Government of Zimbabwe is a result of this effort and other diplomatic initiatives.
“However, as long as the Head of State and Government President Mugabe and Dr (Grace) Mugabe remain on the EU sanctions list the country will continue to be stigmatised and to be denied economic co-operation with other states,” he said.