Diamond miner ups its game
GOVERNMENT — through the Reserve Bank of Zimbabwe and Mines and Mining Development Ministry, has bought mining equipment worth US$8 million from diamond mining companies that used to operate in Chiadzwa, it has been learnt.
The new equipment will add to machinery worth US$30 million sourced from Belarus.
It is anticipated that recapitalising the State-owned Zimbabwe Consolidated Diamond Company will boost production from the current 200 000 carats per month.
Some of the recently sourced equipment came from Jinan and Mbada Diamonds, while discussions with Anjin are ongoing.
Mines Minister Walter Chidhakwa told The Sunday Mail Business that, “We have already made a presentation to the Ministry of Finance and Economic Development and RBZ Governor Dr John Mangudya as we move (forward).
“Consequently, the Reserve Bank, on the instruction of the Ministry of Finance, was able to extend US$8 million with which the ZCDC will now be able to purchase new equipment to improve mining operations at all mining fields. Mbada equipment was auctioned and we managed to buy some of it.”
Since commercial diamond mining began in Chiadzwa in 2006, companies exploited alluvial resources without investing in underground operations.
In the 10-year period from 2006, Chiadzwa diamonds earned Zimbabwe an estimated US$2,5 billion.
Minister Chidhakwa indicated that though Chinese companies had sought legal recourse to fight being subsumed in ZCDC, discussions to resolve the standoff — with help from China’s Ambassador to Zimbabwe Mr Huang Ping — were progressing.
“We are very happy to note that legal issues have been resolved with the Chinese, particularly as it relates to the activities of Jinan, which has dismantled its entire equipment . . .
“As we speak right now, we are almost done with Jinan case and we are now left with Anjin and the legal issues, particularly as it relates to the presentation and the application to the Constitutional Court. So we are proceeding on a very amicable path that I and the Chinese Ambassador started a few months ago, and I’m happy to note that as friends we have been able to go over the hurdle and solve the matter,” he said.
Government is also negotiating with DTZ-OZGEO to acquire the latter’s Marange facility for US$5 million, but the issue of the company’s creditors is still outstanding.