Harare: Zimbabwe conducted a diamond auction sale this month, as production of the precious stones gradually recovers after slumping to an all-time low of less than two million carats from peak levels of 12 million carats, businessdigest can reveal.

Last year, Zimbabwe did not auction the mineral, but stockpiled its rough stones in the aftermath of a botched merger plan by then mines minister Walter Chidhakwa. Diamond production is this year seen growing to 3,5 million carats.

Diamond production by the southern African country, which has been mired in controversy since the discovery of alluvial deposits in 2006 in the Eastern highlands province, is slowly recovering-after government kicked out all miners and took over mining operations.

The Zimbabwe Consolidated Diamond Company (ZCDC), an entity formed in 2016 after the amalgamation of all the diamond mining operations in Marange in the eastern province of Manicaland, is now the sole company extracting the precious stones in the area.

ZCDC, which was recapitalised to the tune of US$80 million by the country’s central bank was by last year only producing between 95 000 carats and 100 000 carats against a target of nearly 400 000 carats.

Zimbabwe can potentially earn as much as US$30 million every month from the projected production targets.

Minerals Marketing Corporation of Zimbabwe acting MD Masimba Chandavengerwa said the country had auctioned part of its diamond stockpile this month after failing to conduct sales last year. He said another auction sale would be held this month.

“The first auction was held this month; another one is due to be held this month,” said Chandavengerwa.