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(HERALD) Murowa Diamonds sets aside US$250m for mine expansion

Murowa Diamonds sets aside US$250m for mine expansion
New Ziana.

Murowa Diamonds has set aside US$250 million for investment in the expansion of its Mazvihwa-based mine and has already completed feasibility studies for the programme, a senior official said on Friday. The official, who declined to be named, said there were regulatory and internal procedures that need to be finalised before the programme could take off.

Expansion of the mine would result in production increasing 10-fold from the current 200 000 tonnes of ore annually to about two million tonnes. The amount translated to about the same amount of carats per year, the official said.

"Feasibility studies have been completed and we are waiting for various regulatory approvals and internal procedures to be completed before the programme begins," the official said.

Production for this year, the official said, had been affected by problems experienced for about four months on a new plant.

"We produced about 350 000 tonnes of ore last year and production for this year is expected to be about 80 percent of that figure due to commission problems," said the official.

About US$4 million had been invested in the setting up of the crushing circuit.

The official said foreign currency shortages, as well as the general macroeconomic challenges had negatively affected production at the company.

Turning to indigenisation, the official said the company endorsed broad-based empowerment.

It was, however, critical that issues such as the timeframe on when the 51 percent was to be achieved be clarified.

The Government has come up with an Indigenisation and Empowerment Bill, which requires that locals hold at least 51 percent in foreign-owned companies in all sectors of the economy.

Murowa Diamonds is owned 78 percent by Rio Tinto plc with RioZim holding the remainder of the shareholding.

Founded in 1997, operations at the Mazvihwa-based mine began in July 2004. — New Ziana.

Labels: DIAMONDS, ZIMBABWE

posted by MrK @ 4:35 AM