Friday, December 30th 05:32 PM IST

Zimbabwe says can supply 25% of global diamond demand

# Zimbabwe diamonds  # Kimberley Process  # Marange  # WDC  

The country, which is currently the seventh largest producer in the world, has potential to supply 25 percent of global demand.

HARARE(BullionStreet): Zimbabwean authorities said a ban by the US on Mbada Diamonds and Marange Resources will not have any effect on country's economy.

Zimbabwe's mineral ministry said they were looking at India and China to fulfill the gap created by US European traders.

The ministry said western states will eventually clear their ban as traders there pressurising respective governments to allow Zimbabwean exports to resume.

It said considering the immense benefit the diamonds are expected to bring into the country not for certain individuals but for the economy as a whole, these sanctions are'nt going to affect in anyway.

The ministry said Zimbabwe is poised to become the world's third largest diamond producer by the end of next year.

The country, which is currently the seventh largest producer in the world, has potential to supply 25 percent of global demand.

Zimbabwe have four diamond-mining firms operating in the Chiadzwa fields, namely Marange Resources, Mbada Diamonds, Anjin and Diamond Mining Corporation.

The nation anticipates $600 million in additional revenue from diamond sales in 2012, which is earmarked to go towards social services that benefit the masses directly.

Zimbabwe is said to have stockpiled gems estimated to be worth up to $5.billon.

Western countries led by the United States have been battling to block Zimbabwe from selling its diamonds in order to sustain effects of illegal economic sanctions that they imposed on the country in retribution for expropriating land from former white commercial farmers.

The US-based Rapaport Group, which represents 6 750 diamond traders worldwide, in December announced a boycott of Marange diamonds, underlining controversy over so-called blood diamonds in fuelling conflict and abuses.

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