Nearly 70 of the diamond cutting and polishing firms opened in Zimbabwe when the Marange diamond fields became operational have closed shop over the past three years due to concerns over the country’s licensing policy. The companies that were initially registered by the Ministry of Mines and Mining Development to cut and polish diamonds closed citing viability challenges and that they had not been given access to diamonds that were cuttable.

Zimbabwe’s diamond cutting and polishing licensing policy includes $100,000 licensing fee that is renewed annually and an additional 15 percent sales tax which is levied on any company that buys diamonds from the producing companies. Mines Minister Walter Chidakwa described the situation as a ‘tragic’ for the diamond sector hinting that the Government will soon be reviewing its licensing policy.

Zimbabwe’s diamonds have created 60,000 new jobs in India’s Surat diamond market that specialises in cutting and polishing.