Chiadzwa changes bring rich pickings

03 Jul, 2016 - 00:07 0 Views
Chiadzwa changes bring rich pickings

The Sunday Mail

Livingstone Marufu

THE Zimbabwe Consolidated Diamond Company last week auctioned 71 000 carats of diamonds, as the overall haul put under the hammer since March soared to 584 364 carats valued at an estimated US$22,5 million.ZCDC has successfully taken over operations of Marange Resources —  a wholly owned subsidiary of the Zimbabwe Mining Development Corporation — and Diamond Mining Company.

Six other mining companies have challenged their incorporation into ZCDC, which Government set up through ZMDC this year to consolidate operations in the diamond fields and derive greater value from its natural resources.

In March, the consolidated firm produced 218 278 carats, followed by 222 528 carats in April, 72 563 carats in May and 71 000 carats in June.

Mines and Mining Development Minister Mr Walter Chidhakwa told The Sunday Mail Business that the four-month performance showed ZCDC’s inherent potential to meaningfully contribute to the fiscus.

“To date, since inception in March, we have produced 513 364 carats from the two producing portals, on top of that we have auctioned 71 000 carats on June 27 (Monday) but we don’t know yet how much we got from that number.

‘‘Judging from the past sales, we estimate to get something close to US$1 million.

“The company made US$3,5 million profit in March from the sale of 218 278 carats; US$2,2 million from 222 528 carats in April; and US$900 000 from the sale of 72 563 carats in May from the two operations. Of this, about US$1 million went to Treasury, with the rest being re-deployed to capitalise the company,” said Mr Chidhakwa.

Government is confident that once it takes over all the mining companies that were operating in Chiadzwa, it will be able to improve both revenue and performance.

The companies will be given an option to sell the equipment to Government.

ZCDC, however, is in the process of acquiring new equipment as it strategically positions itself as the biggest future producer of the precious stones.

“Diamond production is set for a major rebound given what we have seen in the past four months.

‘‘With only two companies operating in Chiadzwa, we have managed to get a good profit of close to US$7 million …

“From that profit we got, we are capitalising most of the companies.

‘‘We have brought in some equipment including X-ray technology that will improve our diamond recovery and also another X-ray machine is being purchased as well,” added Minister Chidhakwa.

The six companies that have taken Government to court over their consolidation are Mbada Diamonds, Anjin Investments, Jinan Mining, Kusena Diamonds, Rera Diamonds and Gye-Nyame Resources.

ZCDC has started exploration at Kusena’s claims, and exploration and evaluation of the ore body are underway at Gye-Nyame Resources, where the plant has been resuscitated and a waterline from Odzi River has been completed.

Said Mr Chidhakwa: “We have to work closely together to achieve the projected six million carats by year-end.

‘‘The Reserve Bank of Zimbabwe, in close connection with the ZCDC, the Ministry of Mines and Mining Development and MMCZ has instituted some measures which include increased access to long term and working capital financing.”

Share This:

Survey


We value your opinion! Take a moment to complete our survey

This will close in 20 seconds