ZCDC Eyes Value Addition Amid Global Diamond Prices Slump

By Shingirai Vambe

BULAWAYO-As global diamond prices continue to experience a significant slump, the state-owned diamond producer, Zimbabwe Consolidated Diamond Company (ZCDC) has reaffirmed its commitment to weathering the downturn through innovation, community investment, and aggressive value addition strategies.

ZCDC Public Relations Manager Tsungirirai Dambuza said the diamond prices across the globe were depressed due to synthetic diamonds which are being manufactured.

In light of this development, she indicated that that state-owned mining entity was taking a strategic direction to stay competitive in the volatile market.

“The global diamond market is facing a universal challenge, with the prices of natural diamonds being depressed by the rise of synthetic alternatives.

“As a natural diamond producer, ZCDC is not spared from this trend. All of us, from Botswana and Lesotho to Canada, are affected, evident in the closure of some mines. However, we are strategically working to keep afloat amidst these market conditions.

“In response, ZCDC is advancing its diamond value addition strategy. We have established a deep facility in Chiadzwa, where we are processing our diamonds to enhance their value and command better prices on the international market.

“We are actively exploring and implementing other measures to add value to our diamonds and ensure long-term sustainability,” said Dambuza told Post On Sunday.

The global diamond industry has been under pressure for the better part of two years. A confluence of factors include weak consumer demand, macroeconomic uncertainty, increased synthetic diamond production, and shifting luxury preferences among younger buyers has led to sharp declines in both rough and polished diamond prices.

Synthetic diamonds, also called lab-grown diamonds, are real diamonds created in a laboratory that have the same chemical and physical properties as natural diamonds.

According to the Rapaport Diamond Index, the average price of a one-carat diamond has fallen by over 15 percent in the past year, marking one of the steepest drops since the COVID-19 pandemic.

Industry leaders like De Beers and Alrosa have responded by reducing production, delaying auctions, and ramping up marketing to support demand.

“We are feeling the pressure, yes, but we are also using this as a moment to redefine our approach. Rather than chasing volume, we are now chasing value addition,” she said.

Dambudza said by moving up the value chain, they can command better prices on the market and create more jobs for Zimbabweans.

“The beneficiation drive aligns with government policy, which emphasizes the local processing of minerals to maximize national benefit. Through this model, ZCDC hopes not only to survive the current price slump but to emerge as a world-class diamond producer, as outlined in its long-term vision.

“We are not just mining for profit; we are mining for the benefit of the nation. That’s why value addition is non-negotiable,” said Dambuza.

ZCDC also showcased in the just ended Mine Entra held in the second largest city and attracted over 240 exhibitors including 16 international direct exhibitors representing four countries namely, the People’s Republic of China, India, South Africa, and the United Kingdom.

Dambuza said their presence was not only limited to their diamond portfolio but the company showcased its Environmental, Social and Governance (ESG) initiatives, highlighting its contributions to community development in health, education, and infrastructure.

“This year, we showcased more than just gemstones. We showed what ZCDC was doing for the communities in which we operate. Our ESG programs are a testament to our role as a responsible corporate citizen.

“From rehabilitating roads to building clinics and schools in remote mining communities, ZCDC has made community development a cornerstone of its operations.

“We believe in shared value. When the company grows, the community must grow too,” she added.

With diamond theft and leakages being a longstanding concern in the sector, Dambuza also spoke of the company’s investment in advanced security and monitoring technologies.

“We are adopting a four-tier security system that integrates both physical and digital technologies. From smart surveillance systems to biometric access controls, we are ensuring that every carat is accounted for,” the Public Relations Manager said.

She explained that ZCDC is also seeking to upgrade its mining and processing equipment to help optimise their operations.

“We are a big buyer of mining machinery. So, events like Mine Entra help us keep in touch with what’s happening globally in terms of mining tech. We want to modernize and optimise our operations,”said Dambuza.