Zimbabwe's Chiadzwa diamond output is expected to hit 40-million carats in the next three years, while annual revenues are projected to reach $2 billion.

The Zimbabwe government has stockpiled 4,5-million carats.

The government, which has been mining in joint venture with Mbada and Canadile, sold its first stones last month following certification from diamond industry watchdog, the Kimberley Process (KP).

"With the new diamond find in Chiadzwa (Marange), we're estimated at 40-million carats per year and $2-billion per year in revenue," said Belgian diamond expert Filip van Loere in an interview. He is advising the government on ensuring compliance with 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."

Zimbabwe's unity government, formed by President Robert Mugabe and Morgan Tsvangirai, now prime minister, says it needs $10-billion to fix an economy ravaged by hyperinflation, which peaked at 500 billion percent in December 2008.

Van Loere said Zimbabwe could surpass top diamond producers like Russia, Botswana and South Africa, but said a sudden increase in output on the global market could force prices down.

"The main issue for Zimbabwe is to be careful in harvesting this resource. Zimbabwe might add 20% 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.