Maravi

(TALKZIMBABWE) Biti calls for diamond deposit audit

Biti calls for diamond deposit audit
By: Our reporter
Posted: Monday, November 29, 2010 4:57 pm

FINANCE Minister Tendai Biti has called for a valuation of the country's diamond deposits, particularly in the Chiadzwa region. Minister Biti did not mention other diamond mines in the country which are largely controlled by foreigners at River Ranch and Murowa.

According to the report, current estimates put the potential annual yield from the Chiadzwa diamond fields at $2 billion.

In volume, Chiadzwa is expected to produce 2.7 million carats of rough diamonds in 2010, bolstered by some 300,000 carats of diamonds from River Ranch and Murowa.

Production in 2011 could reach 4 million carats.

Currently, three diamond mining firms have been licensed to mine at Chiadzwa – Mbada Diamonds, Canadile (currently under corruption investigation), and Anjin China.

Biti cited a number of other issues in Zimbabwe's diamond sector that should be addressed by the Zimbabwe government, including Kimberley Process certification; the process of handing out mining contracts; standards for policing mining and alleged smuggling; and compensating communities whose members have been relocated by the diamond mining industry.

He did not indicate whether the same demands will be made to Murowa Diamonds, which is 78 percent owned by Rio Tinto plc with the remainder held by RioZim - a subsidiary of Rio Tinto.

In his budget presentation last week before Parliament, Biti stated that Chiadzwa diamond production accounted for 2.7 million carats, and another 300,000 carats were produced at River Ranch and Murowa.

He told Parliament that rough diamond sales in August generated proceeds of $56.5 million and sales from September reached $29.9 million. From those sales, accruals to government were almost $42 million.

Labels: DIAMONDS, MUROWA DIAMOND MINE, TENDAI BITI

posted by MrK @ 6:01 PM