Zimbabwe's sole operating diamond mining firm Murowa Diamonds says it suffered a 40 percent drop in production volume in 2007.
Last year the company produced 145,000 carats, compared with 240,000 in 2006.
The firm, which is 78-percent owned by Rio Tinto, blames the drop on frequent power cuts and machine breakdowns.
Zimbabwe is also suffering a drop in skilled workers, as professional and technical staff leave the country in search of stable wages.
A recent study by the Chamber of Mines showed 1,116 vacancies for skilled workers in the industry.
By staff writer
