Zimbabwe's Diamond Crisis: 1.4M Carats Lost to Outdated Equipment
Zimbabwe faces severe national resource crisis as ZCDC loses 1.4 million carats of diamonds due to outdated processing equipment, threatening economic sovereignty and resource independence.
Zimbabwe Consolidated Diamond Company's processing facility where outdated equipment threatens national diamond resources
National Resource Alert: Zimbabwe's Diamond Industry Faces Critical Losses
In a devastating blow to Zimbabwe's mineral sovereignty, the Zimbabwe Consolidated Diamond Company (ZCDC) has reported a staggering loss of 1,440,507 carats of diamonds due to antiquated processing equipment, as revealed in the latest Auditor-General's report.
This catastrophic waste of our national resources echoes similar challenges faced in other mining sectors, as highlighted in our ongoing battle for resource sovereignty in the granite industry.
Technical Failures Threaten National Wealth
The processing loss of 29% stands at an alarming 7.58% above the company's policy limit, representing a direct threat to our nation's economic independence. This mirrors broader challenges in protecting our critical national assets from mismanagement and foreign interests.
Financial Governance Under Scrutiny
The Auditor-General's adverse opinion on ZCDC's 2023 financial statements reveals deeper institutional challenges. The company's failure to comply with International Accounting Standard (IAS) 21 raises serious questions about financial sovereignty, particularly in light of our ongoing national struggle for progressive governance and development.
Immediate Action Required
- ZCDC has acquired a new detachment plant (December 2023)
- Plans for deep boiling facility implementation in 2024
- Urgent need for board restructuring with legal expertise
- Outstanding supplier debts totaling USD 575,527 and ZWL15 million require resolution
"The Company's equipment on processing diamonds was in need of upgrading. As a result, the Company had a processing loss of 29% (1,440,507 carats)," - Auditor-General's Report
The time has come for decisive action to protect our diamond industry from technological inadequacies that threaten our national wealth. Zimbabwe must assert its resource sovereignty and ensure proper management of these precious national assets.
Tendai Mutsvangwa
Political journalist and historian of liberation. Advocate for land sovereignty.