Diamond City gets a sparkling New Year gift as Kimberley Process authorizes export of Zimbabwe rough diamonds

SURAT: The Diamond City could not have hoped for a better New Year gift. The international diamond watchdog, Kimberley Process Certification Scheme (KPCC), on Tuesday authorized the resumption of diamond sales and exports from two mining sites in Zimbabwe’s Marange diamond field. This will end the shortage of rough diamonds that Surat’s diamantaires have been facing for the last one year.

The decision was taken at the ongoing plenary meeting of the KPCC at Kinshasa in the Democratic Republic of Congo. The statement issued jointly by KPCC and World Diamond Council (WDC) president Eli Izhakoff hails the agreement as a milestone. The pact was finalized after negotiations with WDC, Zimbabwe, the European Union, South Africa and the United States and other KP members like India. The joint statement further says that the agreement will remain under constant review until the KP meeting scheduled next year.

The green signal to Zimbabwe, which produces rough diamonds worth $2 billion per annum, to sell its rough diamonds is expected to flood the Indian market, especially Surat, with Zimba stones once the market reopens in mid-November after the Diwali vacation.

The prices of rough diamonds have increased by almost 50 per cent since January 2011 following the huge gap between demand and supply. The inflow of Zimba diamonds in the market will ease the price pressure and ensure continuous supply of raw material to the diamond factories in India. The Gems and Jewellery Export Promotion Council says India imported rough diamond worth $11 billion in year 2010-11.

Speaking to TOI from Antwerp, Ashit Mehta, chairman of the leading Blue Star group said, “We were waiting for this decision from quite a long time and now it is time for Indian diamantaires to grab the opportunity. Only India can process Zimbabwe diamonds.”