WILLIAMSON Diamond Limited will restart production later thisyear at its Mwadui diamond mine in the northeast town of Shinyanga, which it suspended in April last year owing to low prices of the diamond at the world market.
Deputy Minister for Minerals, Prof Shukrani Manya told parliamentarians that Tanzania's only important diamond producer has secured approvals for overdraft funds to resume production at full capacity.
“The local banks have agreed to finance the operations for three months, this could take the company into the next phase of diamond sales,” hesaid.
The Deputy Minister was responding to a principal question from Kishapu lawmaker, Nyangindu Butondo (CCM).
The legislator had demanded that theoperations at the Mwadui diamond mine have been suspended for too long and neededgovernment explanation as to when it will resume.
Prof Manya said, Mwadui mines also known as Williamson Diamond Mines reached its current decision after failing to meet operation costs.
According to the Deputy Minister the fall of the diamond price at the world market was augmented by the outbreak of the novel coronavirus pandemic in thelate 2019.
Mwadui mine sold its diamond in March 2020 as low as 131.13US dollars per carat down from an average of 208.00 US dollars.
Observers saythe price of diamonds at the world markets is expected to increase steadily.