Dodoma. Williamson Diamonds Mines’ resumption of production will depend on acceptance of overdraft funds submitted to domestic banks in order to fund production activities in a period of three months, Parliament was told.
Deputy Minister of Minerals, Prof Shukuru Manya made the statement on Monday, May 10, 2021, when responding to a question from Kishapu Constituency MP Nyangindu Butondo who sought to know reasons why the mine suspended production and resumption plans.
Prof Manya said the mines suspended production in April 2020 following the outbreak of Covid-19 that led to collapse of prices in the world market.
“Prices in the world market collapsed to $131.13 per carat as of March 2020, thus making the company fail to meet costs of production,” he said.
According to him, the company requires at least the price of $208.00 per carat in order to meet costs of production.
He said the trend of diamonds prices in the world market is expected to stabilize as compared to the period in 2020.
Responding to the MP’s supplementary question on the government’s efforts to ensure the company resumes production, Prof Manya said the government will do everything possible to ensure Williamson Diamonds resumes production immediately.
“Our efforts will include talking with service producers, domestic banks and Petra Diamonds that is the parent company, in order to ensure funds are made available in order to resume production and end all challenges facing workers,” he said.