Harare — Zimbabwe's diamond output from Marange fields could reach 40 million carats within the next three years, realising about US$2 billion per year, a Belgian diamond expert has said.

Mbada Diamonds and Canadile Miners are the only two mining firms extracting the gemstones in the Marange diamonds fields, occupying 10 percent of the total area.

"With the new diamond find in Chiadzwa (Marange), we are estimating 40 million carats per year and US$2 billion per year in revenue," Mr Filip van Loere told media this week. Mr van Loere is advising the Government on ensuring compliance with the Kimberly Process Certification Scheme. The country was granted permission to sale its diamonds last month following the approval by the KP.

"Zimbabwe has been propelled to the number one spot as the world's most important player and it will be number three in value. That is estimated to come along within the next two to three years," said Van Loere.

He said Zimbabwe could surpass top diamond producers like Russia, Botswana and South Africa, but noted a sudden increase global diamond output could force prices down.

"The main issue for Zimbabwe is to be careful in harvesting this resource. Zimbabwe might add 20 percent to global trade, but then prices will go down at least 60-70 percent, so we have to be responsible, Zimbabwe should not become the main producer just for the sake of it," van Loere said.

He also suggested that it was crucial that the country established two more well-equipped diamond mining companies to boost production. Mr Van Laere, however cautioned against irresponsible extraction of the gems to avoid flooding the market, which would lower prices. He said with the establishment of the Zimbabwe Trade Diamond Centre, the country would fully benefit from the resources.

Canadile Miners chairman Cougan Matanhire said the ZTDC would be Zimbabwe's central diamond district capturing all rough diamonds and polishing them. "This is a concept to ensure that there is benefit for Zimbabweans from their diamonds," he said, adding the centre would create in excess of 7 000 jobs.

The centre, expected to be complete in March next year, will house the polishing centre, auction house and a training college. Mashonaland West governor Faber Chidarikire said the project would assist Zimbabwe bust economic sanctions imposed on the country by Western countries. "The ailing economy shall be revived through the proceeds making life easy for the Minister of Finance," he said.

Formal mining operations in Marange began late last year following some months of illegal mining. Over 30 000 illegal miners descended on the Marange fields in 2006, prompting the Government to deploy security forces to stop rampant panning and smuggling.

It is estimated that Zimbabwe could have lost several millions of dollars in potential revenue before Government granted Mbada and Canadile mining rights.