Russia’s invasion of Ukraine, according to Zimbabwe’s largest rough diamond miner, could have “far-reaching ramifications” for the global gem business, perhaps boosting demand for its own stones.
According to Zimbabwe Consolidated Diamond Co. Chief Executive Officer Mark Mabhudhu, Russia’s Alrosa is the world’s largest diamond producer by volume (30%), and any disruption in its capacity to supply distorts the market.
“It might wind up generating a supply gap that drives demand for our product, as well as other players’,” he said in a Monday interview. “However, while we don’t wish for the worse, we will be able to sell our products if it occurs.”
According to Mabhudhu, the southern African country is aiming for $12 billion in mining earnings by next year, with state-owned ZCDC contributing $1 billion.
In 2021, the firm had its “biggest year ever,” surpassing its 3 million carat production target by 30% and turning a profit for the first time since its founding in 2015. In 2020, it will generate 2.3 million carats of diamonds.
“We are on track to not only meet, but surpass our diamond production objective for 2022 when compared to the baseline target for 2021,” he added.
Mabhudhu” said that after an eight-month break due to the coronavirus, ZCDC will restart diamond auctions in April, with purchasers expected from Dubai, Israel, India, and South Africa. “
“We have large blocks for sale, and the final sale price is established in cooperation with our selling agency, the Minerals Marketing Corp. of Zimbabwe,” he explained.
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